A professor of chemical engineering from Obafemi Awolowo University, Shuaib Ajiboye Osunleke, has revealed strategies that Nigerians can use to tackle economic hardship in Nigeria.
Osunleke stated this in an exclusive interview with our correspondent.
D2J: Can we meet you?
Osunleke: I am Shuaib Ajiboye Osunleke, a Chemical Engineering professor at Obafemi Awolowo University in Ile-Ife. With over 25 years of experience as an educator, I have dedicated myself to serving my country in the field of academia. Additionally, I possess international exposure, having travelled to Japan and America, contributing to my diverse perspective.
D2J: How best can you describe the economic hardship facing Nigerians?
Osunleke: The prevailing economic challenges in Nigeria are unprecedented and have evolved, particularly manifesting towards the end of the tenure of President Muhammad Buhari and continuing into subsequent administrations. A pivotal factor contributing to this situation was the constrained access to cash and savings, which had cascading effects on Nigeria’s socio-economic landscape and even influenced electoral dynamics. The situation worsened with the discontinuation of fuel subsidies by the incoming government, compounding the difficulties faced by citizens. These hardships, while not entirely novel, are deeply ingrained in Nigeria’s history, as evidenced by references in music from earlier eras. It’s worth noting that periods of hardship have been a recurring theme in the country’s narrative.
Presently, the challenges are enormous and directly impact daily life, with rising prices affecting transportation, food security, and overall living conditions. The technical complexities underlying these challenges become evident upon closer examination. Firstly, Nigeria’s crude oil production consistently falls short of the OPEC quota of 1.8 million barrels per day due to various factors. This is significant because meeting the quota is crucial to maintaining external Dollar reserves, which in turn are vital for securing loans and facilitating infrastructure development. Secondly, the quandary deepens even when considering functional refineries – the struggle to secure sufficient crude for local refining due to production deficiencies relative to OPEC requirements. This dilemma, for instance, has contributed to the delayed operations of the Dangote Refinery.
In light of these intricacies, it is apparent that Nigeria’s challenges extend beyond a surface-level analysis. It is a multifaceted issue with far-reaching implications, necessitating earnest prayers for the nation’s overall well-being. To encapsulate the economic hardships facing Nigerians, it can be said that the interplay of historical context, policy decisions, and external factors has created a complex environment characterized by persistently inadequate crude oil production, impacting external reserves and delaying critical infrastructure projects.
D2J: What can you say about the fuel Subsidy removal by President Bola Tinubu? Is it a welcome development?
Osunleke: I hold ambivalent sentiments regarding the fuel subsidy removal, inclining towards both affirmation and negation. On one hand, scrutinizing the reasons behind the subsidy removal, it becomes evident that much of the subsidy funds are captured by capitalists rather than reaching the intended masses. Fuel subsidies also inadvertently enable cross-border fuel exportation at subsidized rates, causing citizen displacement and exploitation. Additionally, our national debt and limited funding capacity render continued support for capitalists unsustainable.
On the other hand, assessing the existing subsidy system, it is contingent on surplus crude oil production, a state Nigeria fails to attain. Even with functional refineries, inadequate crude production persists, obliging reliance on imported refined products. I am inclined towards dissent due to the lack of comprehensive justification. Although protecting our commonwealth is a noble aim, safeguarding citizens’ welfare is paramount. Addressing oil theft and ensuring public security remains essential. The government should take sole control of oil blocs, an approach present in other countries. These factors cumulatively impact our economic landscape. If subsidies are to be removed, palliative measures targeting low-income earners and sectors affected by the removal must be implemented, encompassing transportation and power. Diversifying energy sources like the use of CNG and coal which are affordable alternatives. Nigeria is home to over 200 trillion cubic feet of both associated and non-associated gas reserves. Similarly, available data show that the proven coal reserves are about 639 million metric tonnes while the inferred reserves are about 2.75 billion metric tonnes. These are viable alternatives the Nigerian government can explore in bringing down the excruciating effect of an increase in the cost of PMS. For instance, investing in NGOs to distribute affordable coal pot which delivers green energy for domestic usage is highly imperative and strengthening our external reserve through increased crude production are viable strategy. President Bola Tinubu’s administration must acknowledge the underestimated challenges, prioritize palliative support, and ensure a well-conceived plan preceding subsidy removal.
D2J: What strategies can Nigerians use to tackle the economic hardship?
Osunleke: Amidst numerous approaches, a viable solution to address economic challenges lies in reducing reliance on imported goods. The adversity inherent in difficult times often fosters heightened rationality and strategic thinking. Presently, Nigeria’s lack of emphasis on innovation and invention is attributed to a lack of necessity; a maxim holds that necessity is the mother of invention. The nation’s abundant fertile lands remain underutilized, as dependency on salaried employment and a petroleum-based economy persists. Prior attempts to prioritize domestic production encountered setbacks due to policy non-compliance and the misrepresentation of locally cultivated products as imported. A comprehensive strategy involves a nationwide return to agriculture, irrespective of one’s occupation. This aligns with the sentiment that in destitute areas, security in hunger and food abundance negates concern. When addressing the question of economic hardship, cultivating self-sufficiency through reduced imports and a rejuvenated focus on farming emerges as a promising strategy for Nigerians.
D2J: How do you prioritize expenses when dealing with financial difficulties?
Osunleke: The period of adversity has yielded valuable insights into our decision-making processes and fiscal management, leading us to prioritize essential expenditures based on a hierarchy of preferences. This adaptive approach aligns with the statement from Margaret Thatcher’s (former British prime minister – 1925 -2013) : ” Nature has enough provisions for human’s needs and not for human’s greed”. I therefore advocate for a shift in priorities, underscoring the importance of discerning necessity from non-essential indulgence. This entails rationalizing possessions like multiple cars that may remain idle, emphasizing primary requisites such as sustenance and educational requirements. In response to an inquiry about handling financial constraints, the consensus is to allocate resources in alignment with core necessities, reflecting a nuanced consideration of immediate responsibilities and the prudent postponement of discretionary expenses.
D2J: Can you share an example of a time when you had to make tough financial decisions due to economic constraints?
Osunleke: In response to the economic challenges, I have undertaken a series of strategic decisions. My car usage has been notably curtailed, with infrequent outings and selective attendance at significant events. I have adopted a more conservative approach to travel, opting for public transportation when venturing beyond local boundaries, underscoring the need for government intervention to alleviate transportation costs. Moreover, at home, a stringent approach to food consumption prevails, minimizing wastage and adhering to a policy of consumption only when hunger necessitates. Concurrently, I have embarked on an agricultural venture, cultivating produce and raising livestock on my property, thereby mitigating expenditure and enhancing self-sufficiency. The collective effort within my family has further strengthened cost-saving measures, directing resources towards essential needs. Reflecting upon this, when prompted with the query regarding a challenging financial decision prompted by economic constraints, this scenario exemplifies my pragmatic response to circumstantial limitations.
D2J: How can one adapt to spending habits when faced with a sudden drop in income or unexpectedly high expenses?
Osunleke: Adjusting to changes in financial circumstances requires a smart and careful approach. The current situation reminds us to be wise with our money, avoid unnecessary spending and focus on what truly matters. This means cutting back on non-essential outings and making sure we eat well to prevent health issues that can be costly. As our income changes, we naturally adapt by spending only on what we can afford. If we need help, it’s better to ask for assistance with important things like food rather than non-essential items. It’s important to match our spending with what we have. Also, we can find cheaper alternatives for things we need without losing out on quality. The agricultural sector is a great example of making the most of what we have.
D2J: In your opinion, what are some common factors that contribute to economic hardships in Nigeria?
Osunleke: The primary contributing factors to economic hardships in Nigeria encompass our heavy reliance on imported goods and services, coupled with a lavish lifestyle. Additionally, the prevailing wasteful and greedy attitudes exhibited by both citizens and the government further exacerbate the challenges. To alleviate this, diversification of the economy is crucial; currently hinging heavily on the oil sector, broadening our economy to include locally produced goods promotes patriotism and resilience. A pertinent illustration is the exploitation by POS users during cash scarcity and the hoarding and subsequent inflated selling of petrol. Collectively, these factors significantly underpin the economic challenges faced by Nigeria.
