PUBLIC POLICY INCONSISTENCY AND ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

The Nigerian economic landscape has been marked by a series of policy alterations, culminating in a convoluted and capricious environment. The sudden cessation of subsidies on vital goods and services, coupled with the transition to a fluctuating exchange rate, has generated concerns regarding their impacts on economic stability, growth, and broader developmental prospects. The objectives of this study encompass a twofold approach: firstly, to meticulously dissect the direct and long-term effects of subsidy elimination on pivotal economic indicators, such as inflation rates, consumer purchasing power, and overall societal welfare; secondly, to meticulously probe the implications tied to the shift from a static to a fluctuating exchange rate regime for the Naira. Through an exhaustive analysis of these policy shifts, the intent is to illuminate potential consequences and offer discernment for the sustained and robust evolution of the Nigerian economy. The outcomes of these policy changes have yielded both positive and negative outcomes. The withdrawal of subsidies has empowered the redirection of significant funds that were formerly allocated to subsidies into poverty alleviation initiatives, infrastructure expansion, and social welfare programs. Equally, this policy pivot has led to immediate escalation in the cost of essential commodities, disproportionately impacting the most vulnerable sectors of society and contributing to inflationary pressures. To ameliorate the detrimental effects of policy inconsistency, recommendations are posited. These encompass the establishment of targeted social safety nets aimed at shielding marginalized populations, a policy of transparent communication to adeptly manage public expectations, creation of an investment-conducive milieu among others.