The Nation Newspaper

Tag: economic policies

  • Two years of Tinubu’s impactful economic policies

    Two years of Tinubu’s impactful economic policies

    Sir: The administration of President Bola Tinubu will be two years old on May 29, 2025.  He didn’t leave anyone in doubt as to the clear focus of his economic agenda from day one.  At the inauguration ground in Eagle Square, Abuja, he made the now famous and impactful statement that  “fuel subsidy is gone.” Fuel subsidy had been a monster that successive governments were afraid to tackle, perhaps for fear of its political ramifications, especially the reaction of the organised labour.

    President Tinubu made it abundantly clear that tough decisions had to be made to prevent the collapse of the nation’s economy.  The removal of fuel subsidy brought inflationary consequences, resulting in the increase in the prices of virtually all goods and services. To mitigate the negative impact, the president engineered the distribution of palliatives to the most vulnerable in society to cushion the negative effects of the end of the subsidy regime which lasted many decades.

    President Tinubu also made another major economic decision to float the naira or merge the exchange rates (official and parallel markets) in order for the national currency to find its real value.  On every occasion, he explained that what Nigerians were experiencing was temporary, and that, with time, they will enjoy the positive impact of his economic reforms.  In less than two years, Nigerians have begun experiencing the positive impact of the reforms.

    The International Monetary Fund (IMF) recently confirmed that Nigeria has fully repaid the $3.4billion financial support it received under the Rapid Financing Instrument (RFI) to cushion the economic impacts of the COVID-19 pandemic. The IMF’s Resident Representative for Nigeria, Mr Christian Ebeke said the repayment was completed on April 30, 2025. He clarified that Nigeria would however continue to make annual payments of approximately $30million in SDR-related charges over the next few years. This is good news for Nigeria because the repayment would boost the country’s international credit rating and strengthen the naira.

    Nigeria’s overall Debt Stock, both external and domestic, of the Federal Government, the 36 states and the FCT, went down from $108.2billion dollars to $94billion dollars as of December 31, 2024.

    The administration of President Tinubu has also cleared all the verified foreign exchange backlog of about $7billion, which made some foreign airlines to threaten to exit the country.

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    Despite dutifully paying off the backlog and reducing Nigeria’s total debt stock through consistent payments to creditors, the country’s gross external reserves still grew to approximately $41billion. This is significantly higher than the $33billion recorded in 2023.

    Nigeria achieved a Balance of Payments surplus of $6.83billion in 2024. This represents a significant turnaround from deficits of $3.34billion in 2023 and $3.32billion in 2022, reflecting stronger trade performance and increased investors’ confidence in Nigeria’s economy.

    In the last two years, the nation’s non-oil exports increased by 24.6 percent to $7.46billion dollars, while gas exports surged by 48.3 percent to $8.66billion dollars, boosting Nigeria’s overall trade surplus.

    Portfolio investment inflows, which measure   investors’ confidence in a country, rose by 105 percent to $13.35billion in 2024.  The renewed investors’ confidence in Nigeria is largely driven by President Tinubu’s bold macroeconomic reforms.

    The economic reforms so far carried out by the president have significantly improved the revenues of the states. The states and the FCT, now receive more money monthly from the Federal Account Allocation Committee (FAAC). The states are now in a financial position to execute projects that have direct impact on the lives of the people, and also pay the new minimum wage of N70,000.

    The Federal Government share from FAAC is being used to fund  gigantic road projects such as the Lagos- Calabar Coastal Highway and the Sokoto- Badagry superhighway.

    In fact, 74 road projects are going on simultaneously across 24 states of the federation.

    President Tinubu deserves praise for staying the course of his economic reforms despite the negative criticisms from naysayers. He deserves our collective support as he strives to build our present and future.

    •Owaikhena Osikhekha Lagos

  • Fed Govt: our economic policies yielding fruits

    Fed Govt: our economic policies yielding fruits

    • Edun: we are improving living standard

    • How we’re bringing down inflation, by Cardoso

    • Bagudu explains revenue target

    • ‘More palliatives for vulnerable Nigerians’

    The Federal Government yesterday painted a positive economic picture of the days ahead.

    The policies of the Bola Ahmed Tinubu Administration are yielding fruits, key members of the economic team assured.

    Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun, his Budget and National Planning counterpart Atiku Bagudu, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso and Federal Inland Revenue Service (FIRS) Chairman Mr Zacch Adedeji promised an imminent drop in the high cost of living and inflation.

    They spoke when they appeared at the sectoral debate organised by the House of Representatives for the finance sector in Abuja.

    Edun said it was expected that there would be challenges with the withdrawal of petrol subsidy.

    According to him, retaining it would have left the country on the path to economic disaster.

    The minister assured that President Tinubu was committed to protecting the poorest and the vulnerable.

    Edun stressed the need to increase crude oil production and boost foreign exchange inflow.

    He said: “Where we are as a nation economically is a much better place than we were on the 29th of May 2023.

    “Before the implementation of the 8-point agenda of the President began, we were in an unsustainable place in terms of the fiscal situation of Nigeria. We were on the road to economic disaster.

    “We had expenditure which was wasteful and unsustainable by way of the subsidy.

    “Not just on fuel, but the subsidy on foreign exchange which confused the incentive framework and people were changing cheap dollars in order to make instant profits.

    “Of course, in turning back from that road, as we have heard, there will be dust.

    “However, bold measures have been taken and there have been positive results.

    “If we look at the finances of the government today, there have been benefits to the federation account; there has been a reduction in the consumption of petrol by about 20 million litres because there was smuggling apart from wasteful use of petrol.

    “Likewise, there have been other benefits which have accrued as a result of the changes that have been made.

    “However, there has been cost. Inflation has increased. The cost of living has spiked and right from the outset, Mr. President committed to making sure that the poorest and most vulnerable were not left behind.

    “That is why the palliatives and the interventions have been rolled out.”

    On efforts to boost oil production, Edun said: “Mr. President made a commitment to confront, to engage and indeed to use state power to subdue the vested interests that had resulted in oil production and sales going down to as low as 1.25 mbpd.

    “We have 1.65 barrels per day and rising. That is the quickest way to give relief.

    Read Also: Era of carting away Africa’s minerals over, says Alake

    “The governor of the CBN said that in 2011 we were virtually at 100 billion dollars a year from oil sales.

    “Now we are on the way back up; 1.65 million bpd and rising.”

    Edun explained the effort to halt rising inflation.

    He said: “A large element is food inflation. In fact, food inflation accounts for 33 per cent of the consumer price index.

    “So, when you attack food production, raise food production and bring down the price of food, you bring down inflation.

    “You get the chance to bring down interest rates and there lies the road to investment.

    “I was recently in Nasarawa and met all the stakeholders in the agricultural chain.

    “They committed with confidence to a very good dry season harvest.

    “We intervened in that sector, from fertilizer, from grains supply to funding for rice, maize, wheat and cassava to bring 400, 000 hectares under production.

    “So, these are the steps being taken to bring inflation down to stabilize the economy and prepare for investment.

    “There will be further intervention on behalf of the poor and vulnerable to assist with the cost-of-living rise, which is the inevitable result of having waited so long to turn the corner.

    “Let us be confident, assured and calm that Nigeria has turned the corner in terms of its economic management and the way forward is up.

    “At the same time, the poor and vulnerable would be assisted at every turn.”

    Cardoso: gains will manifest soon

    Cardoso assured that the positive outcomes of the economic policies will soon manifest.

    He said: “I am happy to inform you that as of yesterday (Monday), the volume of transactions in our markets was over $844 million. This is the first time in many years that it has achieved this level.”

    He said reports from international agencies and multilateral banks reflect Nigeria’s positive trajectory and ratings.

    Cardoso added: “I acknowledge that despite these commendations, the concerns regarding the cost of living and currency rates remain.

    “The urgency of the matter is not lost on us at the CBN and I want to assure you that we are working tirelessly with colleagues from across governments including the leadership of this House to bring lasting solutions. 

    “Governments around the world must grapple with rising fiscal pressures, necessitating a credible medium fiscal framework to effectively manage debt burdens.

    “On the domestic outlook, we know that the Federal Government anticipates a 3.7 percent real GDP in 2024 slightly surpassing the estimated 3.75 percent in 2023.

    “This optimism is backed by key government reforms and the expectation of improved prices and production which are set to drive economic growth.

    “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 per cent aided by improved agricultural productivity and easing global supply chain pressures.

    “A market-driven exchange rate was intended to create a stable macroeconomic environment and discourage currency hoarding.

    “However, short-term volatility attributed to speculation has been an issue.”

    Cardoso said to address exchange rate volatility, a comprehensive strategy has been initiated to enhance liquidity in the forex market.

    “This includes unifying FX markets segments, clearing outstanding FX obligations, introducing new operational mechanisms for BDCs, enforcing the net open position limits and adjusting the remunerable standard deposit facility cap,” he said.

    The CBN governor acknowledged that some of the policies come with pain.

    Cardoso said: “We understand the economic costs of these developments, not just for the economy but also as they affect ordinary Nigerians.

    “However, these costs are temporary and our decisions would address a lot of fundamental issues bothering Nigeria’s economic landscape.

    “These measures will boost FX inflows, stabilise the exchange rate and minimise domestic inflation.

    “Put simply, the exchange rate is determined by the dynamics of demand and supply for a product or service.

    “In essence, the value of the US dollar is determined by the balance of US dollars entering the country and demand for the US dollar among Nigerians.”

    Bagudu, Adedeji: focus is on revenue collection strategies

    Bagudu said the government has been holding a series of meetings aimed at addressing these challenges.

    He said the allocation of 39 per cent of the budget to capital projects was strategic, adding: “For now, our focus is on our revenue collection strategies.”

    Adedeji said the government was working to bring more people into the tax net to enhance revenue generation without increasing taxes.

    He said: “For 2023, the target for the service was set at N10 trillion. Through the efforts of all of us, we achieved N12.3 trillion.

    “This came about because of the bold decision taken by Mr. President by rectifying the distortion in our economic parameters, the removal of subsidy and the wonderful work also being led by the central bank in the unification of the exchange rate.

    “This has had a serious impact in the last seven months of our collection because of the rates we use and because the waste from subsidy payments were curtailed.

    “So, we have overperformance from both the VAT collection and company income taxes because of those that are dollar-based.

    “We have the target for this year based on the approved budget to collect N19.2 trillion which is 7.2 trillion more.”

    Kalu: Nigerians expect results

    Deputy Speaker, Benjamin Kalu, who presided, said the House was committed to steering the country towards a brighter, more prosperous future.

    “Through synergy, we can align our strategies, consolidate our efforts, and amplify the impact of our initiatives.

    “In the face of global economic shifts and domestic challenges, it is clear that robust reform measures are not just beneficial but imperative.

    “We are at a pivotal moment where the decisions we make and the policies we implement will impact the lives of millions of Nigerians.

    “The reforms we envisage should not only address the immediate needs but also lay a resilient and dynamic framework that can adapt to future challenges and opportunities.

    “These measures should stimulate growth, foster innovation, and uplift the lives of every Nigerian,” Kalu said.

    Senate summons economic team

     Also yesterday, the Senate summoned President Tinubu’s economic team.

    The Red chamber last Friday invited Cardoso to appear before it yesterday.

    But the Senate varied the summon, saying the CBN governor and the economic team would appear before it on Friday.

    Also expected are Edun, Bagudu, Adedeji and the Comptroller General of the Nigeria Customs Service (NCS), Adewale Adeniyi.

    Chairman of the Senate Committee on Banks, Insurance and Other Financial Institutions, Adetokunbo Abiru, said the scheduled meeting with Cardoso could not be held because of his appearance at the House.

  • Economic policies achieving results – Buhari

    President Muhammadu Buhari said yesterday in Lagos that his administration’s economic policies are making the desired impact.

    The impact, he said, is evident in the steady growth in the economy in the last three years.

    Buhari, speaking at a meeting with representatives of the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry and Nigeria Association of Small and Medium Enterprises said : ”Inflation is coming down steadily, there is stability in the exchange rate and foreign exchange is readily available for genuine business. Foreign reserves are adequate and growing; capital inflows have increased and the trade balance is positive.”

    The President was also quoted by his Special Adviser on Median and Publicity, Mr. Femi Adesina, as saying that he had kept his promise to boost the economy, through blocking leakages in government finances, increasing capital expenditure and inflows, and implementing the Economic Recovery and Growth Plan (ERGP), among others.

    He added: ”Growth was higher in 2017 than in 2016, data even from external sources shows that it will be higher in 2018 than in 2017.  I am confident that as we stay the course, it will be better still at the end of 2019.

    ”We are paying off debts that were not even publicly acknowledged before now, including those owed to states, the electricity sector, oil marketers, exporters, backlog of salaries of workers and pensioners, amongst others.

    ”Our commitment is reflected in the resources that we are providing for infrastructure.  In 2016 and 2017, capital expenditure was up to N2.7 trillion while over N800m has been released under the current budget.

    ”This has been complemented by the inception of the $650 million Presidential Infrastructure Development Fund which will focus initially on the Lagos-Ibadan expressway, the Second Niger Bridge, the Abuja-Kano expressway and the Mambilla hydropower plant,” he said.

    The President also highlighted completed and ongoing projects in the transport and aviation sector, expressing delight that the rail projects are generating excitement across the country because it would help local businesses to grow.

    ”The Abuja-Kaduna railway is up and running.  The Itakpe-Warri line is being test-run before going commercial.  The completed portion of the Abuja light rail project is facilitating movement to the airport.

    ”The Lagos-Ibadan railway is nearing completion with people already taking test rides on the completed portions. We are determined to work at the same pace on the Coastal Railway Line and the line from Port Harcourt to Maiduguri.

    ”We completed the repairs to the runway in Abuja in record time, and just a few weeks ago, I commissioned the Baro Inland Port. All these achievements will help Nigerian businesses to grow,” he said.

     

  • Capital market summit calls for economic policies’ review

    Financial pundits and business leaders yesterday called on the Federal Government to undertake a critical review of existing policies to realign both the fiscal and monetary policies to national aspiration for sustainable and inclusive growth.

    At the capital market summit organised by the Association of Stockbroking Houses of Nigeria (ASHON) yesterday in Lagos, economic and investment experts, leading financiers and business executives said there must be an alignment between government policies and national growth objectives.

    The summit under the theme: The Road to Nigeria’s Economic Recovery- The Capital Market Route, brainstormed on the Nigeria’s Economic Recovery and Growth Plan (ERGP) and the 2017 budget and concluded that the capital market remains the most viable linchpin for long-term sustainable economic growth.

    Former Governor of Anambra State, Mr. Peter Obi called for a review of the government’s privatisation programme to ensure that the programme realises its key objectives of saving and generating incomes to government and bringing efficiencies to public utilities.

    He described the current privatisation approach as “privatizing profit and sharing losses” as new owners of privatised assets continue to feed on public funds while holding on to the privatised assets without commensurate efficiencies.

    “We are the only country that privatises wrongly. I was in the United Kingdom when Margaret Thatcher decided to privatise British Airways and London Electricity among others. It was a deliberate policy that you have to get investors. In our own case, what we did was to privatise profit and share losses,” Obi said.

    According to him, to straighten the privatisation policy, government should enact a policy that sets limits and allows the privatised entities to be listed and raise funds from the capital market subsequently.

    He called for a discontinuation of government direct funding of privatised entities through financial interventions and institution of a framework that allows privatised entities to explore capital market to raise funds independently from the investing public.

    “Today you sell an asset to Mr. Obi, tomorrow he says the asset cannot work and government will intervene and give him more money. I am saying get these assets and sell them to the public. All the money you put into power assets, for instance, let them go to the capital market raise additional funds. When they are quoted in the capital market, their operations will become more open and efficient,” Obi said.

    The former Managing Director of Fidelity Bank said government should emplace capital market as cornerstone of its economic development programme noting that rather than resorting to borrowings, government should use the capital market for its infrastructural development.

    “Today we are borrowing from China to build airports. Go to South Africa, India, Turkey, they raise funds from the capital market to build infrastructure. These are institutions that are there deepening the market,” Obi said.

    He called for a deliberate incentive policy that encourages companies to access the Nigerian capital market and list their shares as part of efforts to build a sustainable economic development.

    According to him, in most jurisdictions, there are benefits and support for quotation on the stock market.

    The former Governor of Anambra State also called for immediate commencement of a national savings policy to build up savings that could serve as buffer in the period of economic downturn.

    “If there have been savings since we started exploring oil, we would have been in better position. But, forget about the past. It’s gone. So what can be done about tomorrow, we have to start saving now. If we have $100 billion savings today, most of the problems we have today will be solved. You can then tackle inflation and other issues,” Obi said.

    Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo, underscored the importance of creating and building capacity for wealth creation.

    He noted that the capital market remains a very critical institution to getting Nigeria out of economic recession and building long-term growth.

    Chief Executive Officer, Dunn Loren Merrifield Group, Mr. Sonnie Ayere, noted the need to align monetary policies with national economic agenda of the government pointing out that high interest rates are counterproductive to the development of the real economy.

    According to him, the strategy of increasing rates aggressively in a bid to address inflation concerns at this phase of Nigerian development cycle has become counterproductive to the domestic productive economy.

    “We therefore advocate for the removal of structural impediments and the implementation of an efficient policy shift towards the creation of an enabling productive environment – through a reduction in interest rates which would encourage industrialisation and subsequently create. Banks and Pension Funds will only begin to significantly fund the real sector when the only alternative investment outlets are low single digit rates. It is their search for yield that would bring much needed finance to the productive sectors,” Ayere said.

    He pointed out that it is only by making domestic cost of funds economically viable and creating and sustaining a positive yield curve that Nigeria will be able to direct savings including those of pension funds and bank deposits into the productive sectors of the economy.

  • Women bankers seek support for govt’s economic policies

    The Association of Professional Women Bankers (APWB) has urged Nigerians to support the Federal Government’s drive to improve the state of the economy.

    The group spoke ahead of its yearly dinner held in Lagos at the weekend. It said its focus would be on how to offer solution to businesses and entrepreneurs that are also facing challenges.

    The General Manager, Corporate Banking, Sterling Bank Plc, Mrs. Mojisola Bakare-Asieju, said the event with theme: “Repositioning business for continuity in a challenging environment” was the bankers own way of giving their support to the government’s economic policies.

    Mrs Bakare-Asieju, also the chairman of the dinner committee: “This is a time that businesses are collapsing, a period of contraction, job losses and public anger resulting from hunger; therefore the topic is a most appealing subject matter to address,” she stated.

    She, therefore, called on sole proprietors, representatives of the small and medium scale enterprises, other entrepreneurs, fellow bankers, policy makers, graduates and undergraduates as well as the public to attend the association forth-coming event.

    “Indeed, all women, our number one constituency, are looked upon as a major beneficiary from this event. More often than not, we become saddled with major responsibilities in the fall out of economic downturns because of composite roles we play in the society,” she said.

  • ‘Altering economic policies under Buhari in order’

    ‘Altering economic policies under Buhari in order’

    The Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu, has declared that there was nothing wrong in the administration of President Muhammadu Buhari changing any of its economic policies.

    He spoke at the backdrop of alleged inconsistency in some of the government economic policies.

    Speaking with The Nation, he said that it would be wrong to continue with a non-working policy in the name of being consistent.

    According to him, it is not out of place for developing economies to discard policies that are not yielding results for new policies.

    He said: “Economic policies are not Physics, it is not an exact science and you can check the examples of the East Asia economies. What you find is that governments in those countries try policies but remain open to try another policy if they are not getting the desired result with the first policy.

    “There is nothing ultimately wrong if you change a policy when the earlier one is not working. Economy is not like Physics when you say if you send airplane at 500 kilometers per hour from Lagos to Abuja, it must get there in 30 minutes. I think it is important to reflect that policies must be flexible if you are in a developing economy like Nigeria,” he added

    Stressing that the inflation rate in the country has been coming down in the past three months; he said that it will come down very low in next five to six months.

    The inflation rate, he noted, was initially jerked up by cost-push effects.

    He said: “But over the last three months, the trend of inflation has been falling. Because inflation is measured annually, the figure will still look large starting from twelve months ago.

    “But if you start from three months, the rate is beginning to decline. In the next five, six months, inflation will come down fairly good,” he said.

    He also disagreed with those Nigerians that believed that the government does not know what it is doing and causing Nigerians great hardship.

    According to him, the government is keeping to the strategic implementation plan following the passage of the 2016 Budget.

    He said the plan clearly showed the path the government is toeing including the six intervention areas which have 34 priority actions that are already being taken.

    “I think it is unfair after that hard work to say that the government does not have any economic direction or economic plan. The government does and they are being implemented.

    “There is a short term plan to respond to the immediate needs. And we are already meeting and contemplating on the medium term national plan. Prior to that MTEF has already been done.

    “There is a lot of thinking going on out there and there are lots of documentations out there to try and show the economic direction we are going. It is unfair to say they don’t know what they are doing. They do know what they are doing.

    “Like I said, for policy instrument if you try some and they are not working, you don’t continue to hit your head against it. It is not right to say because you want to be consistent, then you don’t know when you need to change course,” he stated.

  • Civil Society seeks review of CBN economic policies

    Civil Society seeks review of CBN economic policies

    The Civil Society Group for Good Governance, (CSGGG), Wednesday called‎ on the President, Muhammadu Buhari to review the economic policies and model adopted by the Central Bank of Nigeria.

    The group stated that government should consider enhancing all economic apparatus capable of boosting economic agenda of the present administration, considering the easy fall of the Naira against Dollar.

    In a statement signed by Comrade Dominic Ogakwu, in Abuja, said it is‎ important to achieve the goal of resuscitating the nation’s economy.

    Ogakwu stated that, “The commitment and proactive steps being taken by the incumbent leadership to completely eradicate insurgency and corruption, which have been the bane of our under development, is not only commendable but a reflection of the true change that Nigerians have always craved for.”

    According to him, with the current administration is better positioned to propel genuine growth and development in all strata.

    Ogakwu, who also called on security agencies in the country to identify blackmailers of the management of Delta State Oil Producing and Development Commission (DESOPADEC), said this is hindering the progress of the commission.

    “As a concern civil society coalition deem it fit to address the issue and call to order those parading themselves as members of unrecognized members of the struggle and forewarn them on their continues distraction of the resolution of the management team to deliver on the dividends of democracy. This anti progressive agents whose sole aim is to minimize the caliber and integrity of the commission as composed by Governor Ifeanyi Okowa, should be fish out and brought justice.

    “With the falling oil price, the effort of the current management to reposition the commission towards delivering the dividends of democracy to the people through a systematic approach that will translate to infrastructural development, sustainable youth empowerment scheme, women and children empowerment and welfare for the elderly, should be supported,” he said.

  • Bad economic policies to go, says Buhari

    Bad economic policies to go, says Buhari

    President Muhammadu Buhari yesterday said he will not hesitate to either reverse, or jettison some of the economic policies bequeathed to his administration for as long as such measures will lead to open employment opportunities.

    He made the remark at a meeting with representatives of the Manufacturers Association of Nigeria (MAN) who visited him at the Presidential Villa, Abuja.

    President Buhari also directed the ministries of Finance, Industries, Trade & Investment, the Central Bank of Nigeria (CBN) and other relevant government agencies to evolve new policies to boost domestic manufacturing before next year’s budget.

    in a statement by his Special Adviser on Media and Publicity, Femi Adesina, the President said: “We are in difficult times economically, but we’ll continue to do our best for manufacturing to pick up. We must begin to behave as if we have no oil at all.

    “We will gladly have policy somersaults, if it will mean more jobs, particularly for youths. I campaigned on three major planks – to effectively secure our country; provide employment through revamping the economy and wage a relentless war against corruption. I intend to keep faith with these promises,” Adesina quoted the President as saying.

    He lamented that the textile industry that employed about 320,000 people in the past now employs about 30,000.

    “It shows the carelessness of past governments, if almost 300,000 people lose jobs in a single sector. We have a clear idea of how we can stimulate employment and we will work very hard to do so,” Buhari told the MAN delegation.

    MAN President Frank Udemba Jacobs appealed for a review of policies that stifle the manufacturing sector, noting that the importance of a robust manufacturing sector for the general well-being of the economy cannot be over-emphasized.

  • Empty Treasury: Experts advise FG on economic policies

    Empty Treasury: Experts advise FG on economic policies

    Prof. Afolabi Bello, Consultant, European Union Federal Governance Reform, on Wednesday advised Nigerian government to ensure effective economic policies to boost the economy.

    Bello, in an interview with the News Agency of Nigeria (NAN) in Abuja, said committed efforts and good policies were panacea to nation’s economic growth.

    He said that the president’s announcement of an empty treasury had called for review of the country’s budget deficits and ways to reduce government expenditures.

    “But again, when you say that there is no money, I think it is saying that the money may not be able to cater for the expenditure profile of the country,’’ he said.

    Bello said that it was important for government to seriously reduce its expenditure and also evaluate its revenue and debt profiles to find a way to stabilise the economy.

    He said that government should also review some of its debts and see if the repayment period could be extended.

    “Again, like the debt to oil marketers should be critically looked into since too much corruption had been identified with the system,’’ he added.

    Bello advised that government must look at ways to reduce tax evasion in the country to enable it generate more revenue for economic growth.

    He said that tax exemptions should be discouraged.

    “The Revenue generating agencies must be properly equipped to do their work effectively to ensure that everybody pays the appropriate taxes.

    “Government must also make sure that it reduces bureaucracy in doing business in the country,’’ he said.

    Bello urged government to support the informal sector and make appropriate laws that would help them to pay tax to help grow the economy.

    He said that the idea of merging government agencies that were doing the same work was a good step, adding that redundant agencies must be closed down.

    This, he said, would help to reduce government expenditures.

    Mr. Olalekan Adigun, a Political Risk Analyst and Researcher, said the empty treasury portrayed the level of corruption in the country’s recent past.

    “The president must look at unusual areas to run his administration; he must block all the loopholes in the system and ensure strong fiscal policies.

    “He must consider belt-tightening by cutting down on the cost of governance in the country,’’ he said.

    Adigun advised that tax policies in the country must be strengthened.

  • Telcos fret over govt’s economic policies

    Telecoms operators have again raised the alarm that they may be constrained to stop offering services flexibility and added benefits to subscribers, given the state of the economy.

    Oil prices have been falling.This has affected the value of the naira against the dollar and the Central Bank of Nigeria (CBN) has restricted the importation of telecoms equipment, generators and other items by directing that foreign exchange be sourced through the interbank only. The efficiency level of services rendered will be affected, according to operators.

    The operators, acting under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON), lamented that those government policies will impact negatively on the cost of service delivery.They however, hope that they would not be forced to pass the cost of the impact to the end users.

    ALTON Chairman Gbenga Adebayo told The Nation  that since the software and hardware that oil the engine of the telecoms industry are import-dependent, it  follows that when attempts are made to constrain access to the funds   required to keep the industry up and running, there is bound to be negative impacts.

    He said: “Certainly these policies will have grave impact on the industry. All the things we use in the industry, to a large extent, most of the hardware and software are import-dependent. So, once you tamper with the source or access to foreign currency, you tamper with the direct effect and, by extension, the cost of service provision. So that ultimately will have its impact.”

    Adebayo said naira devaluation would make cost of service delivery to go up relative to prices end users pay for such services. He added that this would inevitably determine what the operators could do and what they could not do.

    Experts say the resort to interbank for foreign exchange sourcing to import hardware and software for the telecoms industry will increase cost and hamper expansionary drive. This is against the background that there is a huge deficit in infrastructure provision in the country with its attendant effects on quality of services (QoS).

    Adebayo said: “The second is the issue of service prices relative to (the cost of offering the services). All these will have direct impact on the cost of service provision and what we can do (as telcos) and what we are expected to do. It will certainly have impact on our services, but we are hoping that it would not be so significant that we will have to transfer it to the end users.

    “If we don’t have increase in end user tariff, we may not be able to introduce other benefits in terms of areas of flexibility on services. If tariffs are not increased, it will impact on the features and added benefits that we can give to subscribers.”