Economic indicators for Cameroon from January through September, 2015 show a significant drop in the cost of raw material except for cocoa and rubber, according to the report of the Ministry of Finance on budget execution.

The report states inter alia that oil prices experienced a nose dive of 48 per cent compared to the preceding year. In Real value, it dropped from 106.6 dollars a barrel in 2014 to barely 55.5 dollars in 2015. The consequences have been quite telling with oil revenue from January through September falling by 9.4 per cent or 43.3 billion CFA to 415.7 billion CFA compared to 459 billion CFA the year before. Government had projected raising FCFA 547.6 billion from oil within this period. This, in effect shows a vacuum of FCFA 131.9 billion. These figures alone are enough to explain the disaster caused on the country’s economy by the persistent drop in oil prices on the world market.

Despite these upheavals, the Head of State, President Paul Biya in his traditional end-of-year speech to the nation, expressed his determination not to allow the population crumble under such deficiencies. This explains the much welcomed decision to increase family allowances for workers and slice fuel prices with effect from January 01, 2016. “Despite the current economic hardship, I have instructed the Government to implement two key measures: - review pump prices of fuel downward; and - review upwards, the amount of family allowances paid to workers”, he said. This certainly is a serious measure that will not only improve on the purchasing power of the population but will indirectly spur consumption and boost the country’s economy. In effect, economic concepts point to consumption as the value of goods and services bought by people. Consumption they say is normally the largest GDP component. As such, many people judge economic performance of their country mainly in terms of consumption level and dynamics.

“My main concern remains promoting the quality of life in our society. I am aware that this hinges on improving our people’s purchasing power”, the Head of State said. The increase of family allowances and reduction of fuel price translate the concern of the President on the conditions of life of the population. The President is certainly aware of the ordeal families are going through in bringing up children in the face of the present economic dispensation. And considering that government has as policy to enhance family cohesion and growth as a powerful instrument of economic growth, this decision ought not to be a surprise to the population.

The President’s decision is clear and does not require different interpretations. It is binding to all including the private sector, many of whom have not been paying family allowances to their workers. In the same vein, cut in fuel prices concerns all operators in the sector. The news certainly came as a sigh of relief for transporters who have been on government’s neck since they observed that the cost of oil has dropped in the world market. They argued that increase in oil prices in the world market led to corresponding increase in fuel prices at home. This however might not even be the real issue. The real problem now is whether they will equally step down transport fares now that the rates are down. If this is not done, it will mean only transporters will benefit from the Presidential measure and the population will continue in its hardship. As far as family allowances are concerned, a clarion call should be made on landlords not to step up rents on the pretext that family allowances have been increased. If this is not done then the decision of the Head of State will cease from being an oxygen balloon the population expected it to be.