The African Democratic Congress has described the exit of global ride-hailing company, Uber, from Nigeria as further evidence that President Bola Tinubu’s economic policies are turning the country into a “graveyard of businesses.”
The ADC, in a statement by its National Publicity Secretary, Bolaji Abdullahi, on Thursday, said the growing number of companies shutting down, scaling down operations or leaving Nigeria exposed the widening gap between the Federal Government’s claims of economic progress and the hardship confronting businesses and Nigerians.
The party said it was particularly disturbing that the Tinubu administration was celebrating a marginal 0.2 percentage-point improvement in the country’s Gross Domestic Product at a time when businesses were shutting down and jobs were disappearing.
It said millions of Nigerians were sinking deeper into poverty while the ruling All Progressives Congress celebrated what it described as “meaningless milestones.”
“Certainly, a 0.2 per cent growth does not justify the extreme hardship that Nigerians are suffering,” the party said.
The ADC argued that while the Tinubu administration was celebrating the marginal GDP improvement, poverty had risen to 63 per cent, affecting an estimated 140 million Nigerians.
The party challenged Tinubu to explain the significance of the reported GDP growth to Nigerians struggling with rising living costs.
“President Tinubu should explain 0.2 per cent GDP growth to the 140 million Nigerians who have allegedly sunk into poverty since he came to power,” the party said.
It added, “The workers who have watched the value of their salaries disappear; businesses that have struggled with energy costs; and millions who have been forced to reduce the quantity and quality of food on their tables.”
“When the President and his party say things are getting better, we expect them to tell us what has improved in the lives of Nigerians. They should tell us how much food their ‘GDP growth’ has put on the tables. They should tell us which bill it has paid.
“If 0.2 per cent is a mark of success in their books, President Tinubu and APC should tell us what they consider as failure.”
The opposition party said Uber’s exit after 12 years of operations in Nigeria reflected the increasingly difficult business environment, particularly the rising cost of energy and transportation.
According to the ADC, the price of fuel has increased by as much as 1,700 per cent following the removal of the petrol subsidy and naira devaluation.
It said the development was why the ADC presidential candidate, Atiku Abubakar, had proposed the restoration of a targeted fuel subsidy to reduce the cost of fuel, transportation and production.
The party also cited an earlier report by the Manufacturers Association of Nigeria, claiming that 767 manufacturing companies, including 20 major global brands, had shut down or ceased operations in Nigeria, while hundreds of others were distressed since Tinubu assumed office.
The ADC listed Microsoft, Jumia, Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline, Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons among companies that had either shut down or scaled down operations in the country.
“Therefore, when the President announces that Nigeria has turned the corner, we wonder which corner he is talking about.
“If indeed the economy is improving, or the slightest hope exists in the minds of those who run these businesses that this APC government can improve the economy, why are they closing shop and moving elsewhere?” the party asked.
The ADC particularly cited GlaxoSmithKline, which it said shut down its manufacturing operations in Nigeria after 50 years.
“The painful truth is that Tinubu has turned Nigeria into a graveyard of businesses. Every business that shuts down or pulls out is a vote of no confidence in the Tinubu administration and its capacity to manage the economy.
“Each exit delivers a blow to the economy. But perhaps, more importantly, each one represents a massive loss of jobs and increased poverty,” the party said.
The ADC said the government’s celebration of GDP figures was being contradicted by what it described as the worsening economic realities faced by Nigerians.
It said workers were increasingly uncertain about job security, while those still earning salaries were struggling with the cost of transportation to work.
The party reiterated that its presidential candidate’s proposal to subsidise fuel production costs would reduce the cost of living, improve business profitability and create jobs across sectors.