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From Aidoghie Paulinus, Abuja
The Federal Government has said reforms initiated by President Bola Tinubu were already yielding positive results.
Minister of Information and Culture, Alhaji Mohammed Idris, in a statement issued in Abuja, said when President Bola Ahmed Tinubu was sworn in on May 29, 2023, he made far-reaching statements regarding his economic vision for Nigeria, adding that two policy statements stood out in that regard.
“First, he announced an immediate end to the petrol subsidy regime because it could no longer justify its ever-increasing costs in the wake of dwindling resources. Since the removal of the petrol subsidy, petrol importation has dropped by 50 per cent, amounting to one billion litres monthly, according to data released by the National Bureau of Statistics. On a related note, crude oil production is rising steadily, increasing to an average of 1.55 million barrels per day in Q4 2023, from 1.22 million barrels per day in the preceding quarter,” Idris said.
Idris also said in addition, monthly receipts by states from the Federal Accounts Allocation Committee (FAAC) have surged since the subsidy removal, giving governments at all levels billions of naira in extra headroom to deliver the dividends of democracy to Nigerians.
“President Tinubu’s second most far-reaching pronouncement was his promise that the Central Bank of Nigeria (CBN) would work towards a unified exchange rate. In line with his vision for a more transparent and equitable monetary policy, yet without jettisoning its operational independence, the CBN took the very bold step of loosening control of foreign exchange rates, allowing access to foreign exchange to take place at market rates determined on the principle of ‘willing seller willing buyer.’
“As a government, we are not under any illusion that these policy moves are silver bullets, or that nothing else is required. We understand that these are foundational fiscal and monetary policy moves, upon which we must now build the superstructure of true economic growth and prosperity.
“As respected economists and experts have acknowledged, these foundational reforms will be difficult and painful for Nigerians in the short-term. At the same time, there is the consensus that they are inevitable, given just how much they have held back robust and lasting economic growth,” Idris also said.
“These bold moves being implemented are in full alignment with what is required.
“It is heart-warming to note that we are starting to see the results. Indeed, the naira is stabilizing, and the foreign exchange market is seeing a surge of inflows. The latest NBS figures show that capital importation into Nigeria rose by over 66 per cent in Q4 2023, compared with the preceding quarter. The CBN Governor has also highlighted the fact that $1.8 billion flowed into the forex market last week, on the back of the new reforms.”
