Tinubu’s Rejigged Cabinet: A Fresh Dawn Or Another False Start For Nigeria’s Economy?

BY ISAAC ASABOR*

The economic situation in Nigeria has been a perennial concern, with many Nigerians feeling the sting of rising inflation, widespread poverty, and a depreciating currency. President Bola Tinubu, upon taking office, inherited an economy that was already on life support. Faced with a multitude of challenges, his administration has made significant adjustments, including the reshuffling of his cabinet today in a bid to address these economic woes.

Against the foregoing backdrop, it is no more news to disclose in this context that Tinubu has sacked five ministers, and appointed seven more, even as he also re-assigned 10 ministers to new ministerial portfolios and appointed seven more to join his cabinet.

As gathered, the President has rejigged his cabinet after months of growing calls from Nigerians. The sacked ministers include Uju-Ken Ohanenye, the minister of Women Affairs; Lola Ade-John, the minister of Tourism; Tahir Mamman, minister of Education; Abdullahi Gwarzo, the minister of State, Housing and Urban Development; and Jamila Ibrahim, the minister of Youth Development.

The newly appointed ministers include Nentawe Yilwatda, who is coming as Minister of Humanitarian Affairs and Poverty Reduction; Jumoke Oduwole, former Special Adviser to the President on Ease of Doing Business, is coming as Minister of Industry, Trade and Investment.

Others are Muhammadu Maigari Dingyadi, Minister of Labour & Employment, and Idi Mukhtar Maiha, who is taking over as Minister of the newly created Ministry of Livestock Development.

Others are Bianca Odumegu-Ojukwu, Minister of State Foreign Affairs; Abdullahi Ata, Minister of State, Housing and Urban Development and Suwaiba Ahmad, Minister of State, Education

Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed this while briefing State House Journalists after the Federal Executive Council FEC meeting presided over by the President.

In anticipation of this move that is witnessed today, there has been a nationwide debate: “Would there be hope for the improvement of the economy in the face of the cabinet rejig?

When President Tinubu assumed office in May 2023, Nigeria’s economy was burdened with staggering debt, high inflation rates, and an alarming unemployment rate. The subsidy on fuel was promptly removed, sending shockwaves across the country as the price of petrol tripled. Though this was hailed by economic analysts as a necessary but tough decision, the immediate aftermath left the average Nigerian worse off. Food prices soared, transportation costs skyrocketed, and businesses struggled to stay afloat.

In the months following this policy shift, Tinubu’s government received criticism for being slow in cushioning the effects of these reforms on the population. Despite efforts to provide palliatives, many Nigerians have continued to ask if real, sustainable economic improvement is in sight. The cabinet reshuffle, therefore, is seen by some as a signal of Tinubu’s acknowledgement that new hands and new strategies are needed to turn the ship around.

In the cabinet reshuffle, several key ministries were affected, most notably the Ministry of Finance, Budget, and National Planning. A fresh set of technocrats and political leaders now head strategic economic sectors, with a clear mandate to stabilize and revitalize the economy. These include new faces in the Ministry of Trade and Industry, Power, and Agriculture, sectors that are critical to Nigeria’s economic recovery.

One of the notable appointments is the new Minister of Finance, who many hope will bring a fresh approach to Nigeria’s fiscal challenges. Analysts argue that this role is crucial for the Tinubu administration to succeed, as it will be responsible for managing the country’s debt, ensuring proper allocation of funds, and creating a conducive environment for economic growth.

A change in personnel can bring a change in perspective, but it takes more than new faces to revive a struggling economy. One of the critical challenges facing the Tinubu administration is how to restore investor confidence in Nigeria. Foreign investors have been wary of committing capital to the country due to instability in policies, corruption, and security concerns. These issues go beyond the capacity of individual ministers and require coordinated governmental action to be addressed comprehensively.

Additionally, there are concerns over whether the new ministers have the political will and expertise to bring about lasting change. In Nigeria’s political landscape, technocrats are often constrained by bureaucratic bottlenecks and political interference, which hampers swift and decisive action. The real test will be whether these ministers can work effectively together and with the private sector to create an environment conducive to growth.

Given the foregoing, it is expedient to ask, “What Needs to Happen for the Economy to Improve?” As been ballyhooed, just in less than 24 hours, for Tinubu’s rejigged cabinet to make meaningful headway, several pressing issues must be tackled head-on.

First, inflation in Nigeria has become a nightmare for the average citizen. Basic goods and services have become increasingly unaffordable. The new economic team will need to introduce measures to stabilize prices, particularly for essential items like food and fuel. This may involve adjusting monetary policies to curb inflation and protect the value of the naira.

Not only that, agriculture remains the backbone of Nigeria’s economy, but the sector has been underperforming due to poor infrastructure, lack of access to finance, and insecurity in farming regions. The new Minister of Agriculture must prioritize mechanization, improve access to markets, and encourage private investment in the sector. A revitalized agricultural sector will not only provide jobs but also reduce the country’s dependence on food imports.

In a similar vein, youth unemployment has become a ticking time bomb in Nigeria. According to the National Bureau of Statistics, the unemployment rate stands at a staggering 33.3%. To turn the tide, the new cabinet must focus on industrialization and vocational training. Encouraging entrepreneurship and reducing the barriers to starting a business in Nigeria will also help create jobs for the millions of unemployed youths.

Also, Nigeria’s erratic power supply has been a major obstacle to economic growth. Businesses, particularly in the manufacturing sector, spend an exorbitant amount on alternative power sources like diesel generators. If the Tinubu administration can improve the power supply, it will boost productivity and reduce the cost of doing business in the country. The appointment of a new Minister of Power should signal a renewed effort in this critical area.

In a similar vein, economic growth cannot happen in a vacuum. This is as Nigeria continues to grapple with security challenges, including insurgencies, banditry, and kidnapping. In fact, without addressing these security concerns, investments in agriculture, infrastructure, and industry will not yield their full potential. The new cabinet must collaborate with security agencies to restore peace in troubled areas and make Nigeria a safe place for investment.

Perhaps the most important challenge for Tinubu’s rejigged cabinet is the need for fiscal discipline. Nigeria has a history of wasteful spending and corruption, which has depleted public resources and created an enormous debt burden. The new Minister of Finance must ensure that funds are judiciously managed, with a focus on transparency and accountability. Plugging leakages in government spending will free up resources for much-needed development projects, while also restoring confidence in Nigeria’s economic management.

Furthermore, the government needs to tackle Nigeria’s debt crisis head-on. Debt servicing now consumes a significant portion of the country’s budget, leaving little room for capital projects. The new economic team must explore debt restructuring options and prioritize revenue generation. This includes diversifying the economy away from oil and boosting sectors like technology, tourism, and manufacturing.

The reshuffling of Tinubu’s cabinet has raised cautious optimism that the government is serious about addressing the economic challenges facing Nigeria. However, real change will require more than just new appointments; it will require a coordinated and sustained effort from the entire government.

For the average Nigerian, hope lies not just in policy promises but in tangible improvements in their daily lives, affordable food, stable electricity, and access to jobs. The coming months will determine whether Tinubu’s new cabinet can deliver on these expectations or if Nigerians will continue to endure the economic hardship that has plagued them for years.

While the rejigged cabinet may provide a fresh start, the road ahead is long and filled with hurdles. Only time will tell if this new team can chart a course toward economic recovery or if it will simply be another false start in Nigeria’s complex political and economic journey. For now, Nigerians remain hopeful yet cautious, waiting to see if real change is on the horizon.