Subsidy Removal, Exchange Rate Unification Have Achieved Desired Objectives — Tinubu

Subsidy Removal, Exchange Rate Unification Have Achieved Desired Objectives — Tinubu

Amidst the inflationary impact of the removal of petrol subsidy, President Bola Tinubu has indicated that the measure has achieved desired objectives.

But leading economists and investment analysts faulted the position of the President, saying the economy is still struggling as the measures are yet to yield the desired positive impact on the economy.

Speaking at the opening ceremony of the 29th edition of the annual Nigeria Economic Summit Group (NESG) Tinubu stated that in addition to the removal of the subsidy the regime directed the unification of foreign exchange rates to stimulate economic growth.  

He said,   “To stimulate economic growth, we announced the end of a crippling fuel subsidy regime and the unification of foreign exchange rates.  

“Combined with the effects of an unsustainable fiscal deficit and hidden subsidies, these factors distorted the money supply and created an unfair playing field for an elite crop of unpatriotic forces. But that is no more. These changes have been tackled head on.”

President Tinubu also said his government has introduced several other measures to revive the economy including the N500 billion intervention to support small businesses and the agricultural sector, adding “by January 2024, the new student loan program and consumer credit schemes will have come into effect; New and affordable homes will also be built at record pace.”  

Tinubu however, added, “We have all felt the pain of these reforms; soon, we shall begin to reap the rewards. It is my hope that this summit will deliberate and proffer yet more solutions to complement the programs mentioned above.”

Further on his regime’s economic recovery efforts, Tinubu said, “To mobilise finance for sustainable development, we have simultaneously commenced an aggressive domestic and external mobilisation of financial resources and capital from a wide range of partners.

“Amongst several initiatives, we are progressing forward with the development of wide-ranging reforms to our fiscal and tax policies to ensure an efficient, fair and growth-friendly fiscal environment.

“To harness our Human Capital, we must protect the socio-economically vulnerable and vanquish forever the crippling multidimensional poverty affecting our land as we move aggressively to end hunger and protect all Nigerian children.

“Consistent with our commitment to enshrining fairness and the rule of law in our country, this government will uphold the sanctity of every legitimate contract. Specifically, as it relates to foreign exchange obligations of the government, all forward contracts that the government has entered will be honoured and a framework has been put in place to ensure that these obligations are met in due course.

“My government is not blind to the challenges several of you are facing in the financial markets. I can allay these concerns by revealing that we have a good line of sight for the additional foreign exchange liquidity that is required to restore market confidence.

“Further details elaborating on the specifics of these far-ranging initiatives to deepen foreign exchange liquidity and improve confidence across all stakeholders would be shared by the Coordinating Minister of the Economy and the Governor, Central Bank of Nigeria”.

$1trn economy achievable  

On the general economic outlook, Tinubu stated: “A One Trillion Dollar Nigerian Economy is possible by 2026, and a Three Trillion Dollar Economy is possible within this decade. We can do it with double-digit, inclusive, sustainable and competitive growth.  

“This is our agenda, and I would like to charge you, the captains of industry here present, to commit and redouble your commitment to our vision of a Renewed and more Prosperous Nigeria, a better Nigeria for all.

“I am confident that by working closely with all of you in the private sector, financing our   $3 trillion National Infrastructure Stock can be achieved in 10 years and not in 300 years. Building megacities in every geopolitical zone of the size and scale of Lagos must not take us another six decades. We can do it in one decade.”  

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