MON, MAY 29 2023-theGBJournal |In his inaugural speech, President Ahmed Bola Tinubu reeled out a raft of policy changes to expect-both fiscal and monetary- that could fundamentally change the economic fortunes of Nigeria and Nigerians in particular.
Following his swearing in today, the well-coordinated and reassuring speech was laced with encouraging actions to be immediately taken, including those which the World Bank and the International Monetary Fund (IMF) has long advocated, and many hail the speech as one of the best presidential inaugural speech ever in the history of the country.
”Our mission is to improve our way of life in a manner that nurtures our humanity, encourages compassion towards one another, and duly rewards our collective efforts to resolve the social ills that seeks to divide us,” President Tinubu said before he went on to outline in broad terms a ”few initiatives that defines our concept of progressive good governance in furtherance of the Nigerian ideal” in the next four years.
The policy decisions articulated include the immediate removal of the contentious fuel subsidy, the unification of the country’s multiple exchange rate, ”where some companies with privileged owners have access to billions of dollars at lower price, while others obtain it at the market rate,” total decentralization of the electricity sector and reduction of interest rates.
On the much derided subsidy removal, he said ”it can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions.”
”Monetary policy needs thorough house cleansing,” the President declared. ”The Central Bank must work towards a unified exchange exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
He said interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy.
”Whatever merits it had in concept, the currency swap was too harshly applied by the Central Bank of Nigeria (CBN) given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender.”
He assured that his administration shall continue the efforts of the past (Buhari) administration on infrastructure, saying that progress towards national networks of roads, rail and ports shall get priority.
On the economy, he told Nigerians that his government will be targeting a minimum 6% GDP Growth in the medium to long term, which means a higher GDP growth and significant reduction of unemployment, and to accomplish that, his administration will be taking the following steps;
”First, budgetary reform stimulating the economy without engendering inflation will be instituted.
Second, industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency, and third, electricity will become more accessible and affordable to businesses and homes alike.
He said Power generation should nearly double and transmission and distribution networks improved,” adding that they will encourage states to develop local sources as well.
”With full confidence in our ability, I declare that these things are within our proximate reach because my name is Bola Ahmed Tinubu, and I am the President of the Federal Republic of Nigeria.”Â
He also touched on the most vexed issue of security which the past administration failed to arrest but managed to suppress to some extent.
Like the past administration, President Tinubu assured that security shall be the top priority ”because neither prosperity nor justice can prevail amidst insecurity and violence.”
To effectively tackle this menace, he said his administration shall reform both the country’s security Doctrine and Architecture.
”We shall invest more in our security personnel, and this means more than an increase in number. We shall provide better training, equipment, pay and firepower.”
The President said his team will, in the coming days and weeks, publicly detail key aspects of the his programme.
He highlighted the principles that will guide the administration, which he says are ”simple.”
For him ”Nigeria will be impartially governed according to the Constitution and rule of law. We shall defend the nation from terror and all from terror and all forms of criminality that threaten the peace and stability of our country and our subregion. We shall remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty.”
Again, he assured that women and youth will feature in the administration prominently and reiterated the need for the government to take proactive steps such as championing a credit culture to discourage corruption while strengthening the effectiveness and efficiency of various anti-corruption agencies.
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