CNG Warns of Imminent Economic Collapse in Nigeria

 

The Coalition of Northern Groups (CNG) has issued a stern warning regarding the potential collapse of Nigeria's economy. In a statement by its National Coordinator, Comrade Jamilu Aliyu Charanchi, the CNG expressed grave concerns about the current economic conditions, which they believe signal an impending crisis.

The group emphasized the urgent need for the current administration to address the escalating hardship affecting all segments of Nigerian society. “Life has become unbearably difficult for the vast majority of citizens. The suffering is evident across every level of society,” the CNG declared. They attributed the dire situation to the actions and policies of both the current and previous governments.

Citing data from the Nigeria Bureau of Statistics (NBS), the CNG highlighted the alarming state of the nation: 133 million Nigerians are living in multidimensional poverty, and 20 million people, mostly young and within the productive age bracket, are either completely unemployed or underemployed. They also pointed out the severe social consequences of insecurity, such as community displacement, loss of lives and properties, and psychological trauma.

The group criticized the government's response to the economic crisis, describing it as a "trial-and-error approach" that has worsened conditions for Nigerians. They noted that the recent increase in interest rates by the Monetary Policy Committee (MPC) would further harm the economy and reduce job creation prospects.

"The anti-people policies of the government have only allowed a few elites to amass wealth, while the majority continue to suffer in deep poverty," the CNG stated. They echoed concerns from stakeholders that higher interest rates would reduce investments and economic growth, exacerbating the challenges faced by businesses and leading to factory closures and job losses.

The Manufacturers Association of Nigeria (MAN) reported that within two months, over 16 multinational corporations relocated from Nigeria to neighboring countries, more than 300 local manufacturing companies closed, and over 380,000 jobs were lost. These developments have forced many Nigerians back into the labor market in search of non-existent employment opportunities.

The CNG called on President Bola Tinubu to reassess his economic advisers and tax regime committees, accusing them of prioritizing personal interests over national well-being. They urged the President to remove these advisers, whom they blame for harmful policies that have deepened poverty, unemployment, inequality, and insecurity.

The group also criticized the removal of fuel subsidies, which led to a staggering 195% increase in petrol prices, from ₦238 to ₦701 per liter. This price hike has severely impacted the mobility of people and goods across the country. Despite an increase in crude oil production and favorable oil prices, these revenues have not benefited the average Nigerian or the nation as a whole.

Furthermore, the CNG expressed skepticism about the government's plan to fund a new national minimum wage by increasing fuel prices. While they support the idea of a decent living wage for Nigerian workers, they doubt that such an approach will solve the underlying economic issues, especially amid rising inflation and the devaluation of the naira.

In conclusion, the CNG's statement is a call to action for the government to implement more effective and people-centered economic policies to avert the looming collapse and alleviate the suffering of Nigerians.