Duke Criticizes Tinubu’s Policies for Economic Strain, Cites Multinational Exits and Inflation Drivers
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On Friday, Sources with Laolu Akande, Duke criticized President Bola Tinubu’s administration for the “fundamental error” of simultaneously removing subsidies on petrol and electricity. He argued that these policies are unsustainable and urged a reevaluation to prioritize the welfare of the people. Duke emphasized that reducing energy prices could boost productivity and, in turn, drive economic growth.
Duke outlined four key factors impacting inflation in Nigeria: high energy costs, inflated contracts, unequal wealth distribution, and high interest rates. He stressed the importance of making the economy work for the people, noting that citizens are more concerned with their daily livelihoods than with the nuances of governance. Duke emphasized that a government’s role is to enhance citizen productivity within a stable environment. He pointed out that Nigeria’s high unemployment rate and dependency ratio reflect a significant lack of productivity. Duke called on the current administration to focus on industrialization to reduce Nigeria’s dependence on imports and stabilize the nation’s economy.
Duke highlighted that over 60% of pressure on Nigeria’s foreign exchange earnings stems from oil imports, and domesticating oil production could significantly improve the exchange rate. He criticized Nigeria’s heavy reliance on imports, urging a shift towards a productive, manufacturing, and agrarian economy to match the needs of its growing population. Additionally, Duke noted that soaring energy prices are driving international manufacturers out of Nigeria and argued that oil and gas prices should be tailored to support local industries rather than being set according to international standards.
Duke pointed out that numerous companies are exiting Nigeria due to high production costs and the unstable exchange rate. In recent months, several manufacturers, including Kimberly-Clark, which produces Huggies and Kotex, have left the country. Other multinational exits over the past year include Procter & Gamble, GlaxoSmithKline, Unilever, and Sanofi-Aventis Nigeria. These companies cited high energy costs and currency depreciation as key reasons for their departure.
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