Nigeria’s Tinubu Says Protests Seek to Undermine Government

(Bloomberg) -- Nigerian President Bola Tinubu said demonstrations last week that led to the deaths of at least 21 people had a political agenda and were meant to undermine his government. 

Tinubu, in his first public speech since the protests began on Aug. 1, called for a suspension of demonstrations and for those taking part to embrace dialog and not allow themselves to be used to promote an “unconstitutional agenda.” 

Protesters marched through the streets in several states of Africa’s most populous nation on Thursday and Friday, chanting “we are hungry.” They made a dozen demands, including that the government fully reinstate fuel subsidies, cut electricity tariffs and reduce duties on imports. 

“Our government will not stand idly by and allow a few with a clear political agenda to tear this nation apart,” the president said in a national broadcast to Nigerians on Sunday morning. 

The demonstrations have killed 21 people, injured 175 others and contributed to 500 billion naira ($309 million) of “economic sabotage,” Trade and Investment Minister Doris Uzoka-Anite posted on X.      

The president’s withdrawal of a peg to the naira has resulted in a more than 70% depreciation of the currency since June 2023. That has added to an acceleration of inflation to an almost three-decade high in the nation, where 40% of the population live in extreme poverty. 

Meanwhile, the nation’s sovereign-risk premium surged to the highest in eight months, and its dollar bonds were some of the worst-performing assets in emerging markets on Friday, amid concern that cost-of-living protests across the country could derail the government’s economic reform plan.

Tinubu insisted Sunday that the decision to remove fuel subsidies and abolish the naira peg were “painful yet necessary” because both policies impeded economic development and progress. 

The government’s half-year revenue more than doubled to 9.1 trillion naira in June and debt service now consumes only 68% of revenue, from 97% about 13 months ago, according to the president, who was inaugurated in May 2023. In addition, oil production increased to 1.61 million barrels a day in July.

“These decisions I made were necessary if we must reverse the decades of economic mismanagement that didn’t serve us well,” he said. 

The president also announced plans to cultivate 10 million hectares (24.7 million acres) of land to grow food, and said his government has ordered mechanized farming equipment, including tractors and planters, from the US, Belarus and Brazil. 

Tinubu promised duty-free imports of rice, wheat, maize, sorghum, drugs, and other pharmaceutical and medical supplies over the next six months as part of a government initiative to cushion the economic crisis that triggered the protests. Some 100,000 housing units will be built over the next three years, he said.

“I understand the pain and frustration that drive these protests,” Tinubu said. “I want to assure you that our government is committed to listening and addressing the concerns of our citizens.”

(Updates with new death toll in first paragraph, comments from minister in fifth paragraph.)

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