ECONOMIC HARDSHIP EXPERIENCE OF URBAN RESIDENTS UNDER TINUBU ADMINISTRATION (A CASE STUDY OF LEKKI RESIDENTS)

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Although there is no universally agreed-upon definition of recession, it is usually recognised that the term refers to a time of economic decline (Bagda et al., 2019). Recessions are not defined by extremely short durations of economic decline. A commonly used operational definition of recession, adopted by the majority of commentators and analysts, is the presence of two consecutive quarters of negative growth in a nation's real (adjusted for inflation) gross domestic product (GDP), which represents the overall value of goods and services produced by the country (Tobi et al., 2018). 

It is widely known that Nigeria is currently experiencing a severe economic slump. The economic downturn in Nigeria has resulted in widespread economic suffering for the whole population. Since assuming office in May of the previous year, Tinubu has enacted changes such as significantly reducing gasoline and energy subsidies and depreciating the naira currency on two occasions in an effort to stimulate investment and enhance productivity. According to Mcdonald and Abraham (2024), he argues that the policies are essential for positioning Nigeria on a trajectory of sustained economic growth.  However, the economy is experiencing growth that falls significantly behind the 6% annual expansion goal set by Tinubu. Additionally, the changes have led to a 28-year high in inflation, exacerbating the cost-of-living crisis. Bismarck (2024), a renowned economic analyst who was selected to serve on Tinubu's economic council in March, concurred with the necessity of economic reforms but emphasised the importance of giving greater consideration to their execution. "The rapid implementation of the reforms occurred without a well-defined strategy to address the potential consequences of these reforms on the population" (Mcdonald & Abraham, 2024).

The cessation of the gasoline subsidy, which had long provided Nigerians with inexpensive petrol, has had a significant impact on the population. Petrol is extensively utilised in the nation to fuel not just automobiles, but also generators for small enterprises and residences.  According to Idowu (2024), the price of refuelling his automobile has increased almost fourfold to 36,000 naira ($30) since the removal of the petrol subsidy last year. In order to reduce expenses, he currently operates his gasoline-powered generator at home for a mere four hours daily, even if it entails enduring the scorching heat of Lagos without the luxury of a fan (Mcdonald & Abraham, 2024). On the occasion of the Democracy Day celebration, a group of Nigerians in Lagos staged a protest against the difficulties encountered by the present administration, which assumed power in May 2023 and has implemented policies that have been criticised as detrimental to the welfare of the people (Anthony, 2024).

Urban dwellers in Nigeria have consistently faced economic hardship. The tenure of President Bola Ahmed Tinubu, which commenced in May 2023, has been characterised by a range of economic measures designed to rejuvenate the country's economy (Mcdonald & Abraham, 2024). Nevertheless, these strategies have produced varied effects on certain demographic groups, particularly in metropolitan regions. The administration of President Tinubu has enacted numerous economic measures aimed at tackling the nation's fiscal difficulties, fostering economic expansion, and alleviating poverty. The main strategies implemented include the elimination of subsidies, the implementation of tax changes, and initiatives to attract foreign investment (Bolu, 2024). Although the primary goal of these measures is to ensure long-term economic stability, they have resulted in immediate economic difficulties for both urban inhabitants and the Nigerian population as a whole. 

This study examines the economic hardship faced by people of Lekki, a key urban district in Lagos State, during the Tinubu administration. Lekki is an emerging metropolitan region characterised by its prosperous residential areas, bustling commercial activity, and expanding infrastructure (Aliu, 2023). Although Lekki is prosperous, it still has a substantial population of middle- and low-income citizens who are susceptible to economic changes. The juxtaposition of affluence and destitution in Lekki renders it an exceptional subject for examining the wider economic ramifications of governmental policy. Therefore, the necessity for doing this investigation arises.

1.2 Statement of the Problem

The Nigerian economy has encountered significant obstacles as a result of the ongoing economic downturn that took place under President Bola Ahmed Tinubu's tenure. Governments encounter significant challenges while addressing economic recessions as they strive to stabilise the economy, extend assistance to affected industry, and mitigate the adverse effects on the population. Under President Bola Tinubu's leadership, Nigeria has faced a period of economic decline marked by substantial inflation, rising unemployment, and a volatile global market.

Nigerians are furious about the policies implemented by President Tinubu (Okonofua, 2024).  A study done by an African polling institute in 2024 exposes a stark reality: The policies enacted by President Bola Ahmed Tinubu during his inaugural year in office have led to a pervasive state of hunger, poverty, and discontent among the populace. 84% of the people is profoundly saddened by the current state of affairs in the country. Their dissatisfied expressions serve as a strong request for prompt action, since an overwhelmingly large proportion of the population (81%) hold the belief that the nation is heading in the wrong direction. The individuals notably emphasise Hunger (36%), Inability to fulfil basic necessities (28%), Unemployment (13%), Increased Insecurity (9%), and Inadequate Electricity Supply (5%) as the main challenges they currently encounter. In addition, a remarkable 74% of persons acknowledged that their personal economic situation had deteriorated in the previous year, while just 20% reported no change in their personal economic status, and an only 5% claimed an improvement. Ifiok (2024) has perceptively observed a growing population of discontented and unsatisfied persons across the nation, particularly among the younger demographic. A substantial proportion of individuals are presently unemployed or are engaged in occupations that fail to fully leverage their talents and abilities. These individuals have assumed the responsibility of being local advocates and social activists in their areas. They eagerly anticipate any opportunity to articulate their displeasure and animosity towards both their fellow inhabitants and the Nigerian government.

The economic measures implemented during the Tinubu administration have resulted in a rise in living expenses, hence impacting the buying capacity of city dwellers. Residents of Lekki have observed an increase in economic difficulties, such as escalating prices of necessary commodities and services, housing expenses, and transportation costs (Bidemi & Isaac, 2024). These difficulties require a thorough analysis of how economic policies are impacting the day-to-day life of Lekki inhabitants. Therefore, the necessity for doing this investigation arises.

Objectives of the study

The primary objective of this study is to critically evaluate economic hardship experience of urban residents under Tinubu administration (a case study of Lekki residents). Specific objectives of this study are to:

To determine the effects of recession on the cost of living of Lekki residents

To evaluate the impact of economic policies of the Tinubu administration on the economic well-being of Lekki residents

To explore the strategies employed by Lekki residents to cope with economic hardship.

To offer solutions on mitigating the adverse effects of economic policies on urban residents.

1.4 Research Questions

The following research questions which are in line with the objectives of this study will be answered in this study:

What are the effects of recession on the cost of living of Lekki residents?

What is the impact of economic policies of the Tinubu administration on the economic well-being of Lekki residents?

What are the strategies employed by Lekki residents to cope with economic hardship?

What are the solutions on mitigating the adverse effects of economic policies on urban residents?

1.5 Research Hypotheses

The following research hypotheses will validate this study;

Ho: There is no significant impact of economic policies of the Tinubu administration on the economic well-being of Lekki residents.

Ha: There is significant impact of economic policies of the Tinubu administration on the economic well-being of Lekki residents.

1.6 Significance of the study

The importance of this study resides in its specific examination of Lekki residents under the Tinubu Administration, providing insights into economic difficulties, influencing policy choices, contributing to scholarly discussions, and ultimately striving to enhance the economic welfare of urban communities. The findings will serve as a key benchmark for governments, urban areas, students, and scholars.

Through the examination of the financial difficulties faced by city dwellers, the study can pinpoint deficiencies or achievements in the economic measures enacted during the Tinubu Administration. This can provide valuable insights for future policy-making and governance measures to more effectively tackle the economic issues experienced by urban residents. 

Moreover, the study contributes to the existing scholarly literature on urban economics, governance, and public policy. It offers factual information and in-depth analysis that can be used as a reference by other academics and scholars who are interested in related subjects. The study's findings and conclusions can provide potential directions for further research, such as investigating the precise elements that contribute to economic difficulties, assessing the efficacy of solutions, or examining long-term economic patterns in metropolitan regions.

1.7 Scope of the study

Broadly, this study focus is to critically evaluate economic hardship experience of urban residents under Tinubu administration. Specifically, this study seeks to evaluate the impact of economic policies of the Tinubu administration on the economic well-being of Nigerians and determine the effects of recession on the cost of living of Nigerians. 

Further, this study will focus exploring the strategies employed by Nigerians to cope with economic hardship and it also seeks to offer solutions on mitigating the adverse effects of economic policies on urban residents.

The study is carried out in Lekki, Lagos state.

1.8 Limitations of the study

As is common in all human endeavours, the researchers faced minor limitations when conducting the study. The main limitation was the lack of extensive literature on the subject, as there is limited data available for economic hardship experience of urban residents under Tinubu administration (a case study of Lekki residents). Consequently, a significant amount of time and effort was necessary to locate the appropriate materials, books, or information and to gather data. 

Additionally, this study is constrained by its small sample size and narrow geographical scope, focusing just on Lekki, Lagos state. Consequently, the results of this study are not applicable for generalization, thereby leaving room for further research. 

Additionally, the researcher's limitations were primarily due to financial constraints, as they are a student and do not have a source of income to sustain themselves. It was challenging to afford transportation expenses to and from the study location due to the high cost of transportation, which is influenced by inflation in Nigeria today.

Furthermore, the researcher faced a time constraint due to the need to do this research while also fulfilling the obligations of attending lectures and other educational activities.

1.9 Definition of terms

Economic recession: Economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales

Inflation: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Economic hardship:  economic hardship refers to difficulty caused by having too little money or too few resources.