May 29, (THEWILL) – President Ahmed Tinubu has unveiled steps to halt Nigeria’s declining economy characterised by poverty, unemployment, high inflation rate and dwindling investment inflow.
Tinubu disclosed this during his inauguration speech in Abuja on Monday, May 29, 2023.
He reiterated the stance to build an enabling environment for businesses to thrive and achieve optimum GDP growth by focusing on critical areas such as agriculture and job creation.
He said his administration will target budgetary reforms that would address the nation’s electricity challenges and poor industrialisation.
His words, “On the economy, we target a higher GDP growth and to significantly reduce unemployment.
“We intend to accomplish this by 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.
“Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well.”
On investment and operating environment, Tinubu assured that his administration will address the concerns of both domestic and foreign investors in the areas of multiple taxes and forex challenges in repatriation of dividends.
“I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxation and various anti-investment inhibitions.
“We shall ensure that investors and foreign businesses repatriate their hard earned dividends and profits home,” he said.
On jobs, Tinubu said his administration will tackle unemployment headlong by focusing on his election campaign promises to boost employment in the digital economy.
“My administration must create meaningful opportunities for our youth. We shall honour our campaign commitment of one million new jobs in the digital economy.
Our government also shall work with the National Assembly to fashion an omnibus Jobs and Prosperity bill. This bill will give our administration the policy space to embark on labour-intensive infrastructural improvements, encourage light industry and provide improved social services for the poor, elderly and vulnerable,” he said.
He said his government will revisit the moribund commodity boards to boost agriculture and achieve food security across the country.
He promised to introduce reforms in agriculture to boost the income of the rural farmers as well as create a new practice in livestock farming.
He said, “Rural incomes shall be secured by commodity exchange boards guaranteeing minimal prices for certain crops and animal products. A nationwide programme for storage and other facilities to reduce spoilage and waste will be undertaken.
“Agricultural hubs will be created throughout the nation to increase production and engage in value-added processing. The livestock sector will be introduced to best modern practices and steps taken to minimize the perennial conflict over land and water resources in this sector.
“Through these actions, food shall be made more abundant yet less costly. Farmers shall earn more while the average Nigerian pays less.”
He said that his administration will build on the infrastructure progress recorded by the immediate past Buhari administration and also tackle the fuel subsidy challenge frontally.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.
“Subsidy 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, health care and jobs that will materially improve the lives of millions.”
Tinube took a swipe at the Central Bank of Nigeria (CBN) for the poor implementation of the currency swap which he said inflicted hardship on Nigerians.
He stressed that his government will address the widely criticised multiple foreign exchange regime by introducing a unified forex rate system through a thorough overhaul of the monetary policy stance.
“Monetary policy needs thorough house-cleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.
Whatever merits it had in concept, the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender,” Tinubu said.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
