- Nigerians commend Tinubu’s ‘hands-on leadership style’
- Expect palpable economic recovery in one year
- FG may merge Customs, NIMASA, FIRS
BY TIMOTHY AGBOR AND MAYOWA SAMUEL
In just about two weeks into the new administration, Nigerians across all sectors have said the country’s economy may show signs of visible recovery in less than a year, basing their confidence on what they described as the hands-on approach of President Bola Tinubu to solving critical problems without delay.
According to those who spoke with The Point in separate interviews on Thursday, since the President assumed office, everyday has brought one good news for the rebound of the economy, even though the immediate effect may be a bit painful.
“The President is gradually winning more critics over with his style. He is deliberate about what he wants to do and he seems to have been ready long ago to take up this big task. As an economist, I can tell you that the policy actions the government has taken within a few days is very much capable of turning the economy round for good in less than one year. He is going directly to the main problems and tackling them. I would say it has been one day, one milestone,” an Economist and Chief Executive Officer of WideReachNg, Dr. Nkechi Johnson, said.
BABA GO FAST?
A report by Reuters on Thursday said in less than a month, President Tinubu had instituted policies to push Africa’s largest economy on a reform track that investors had eyed for decades, “fuelling excitement that money could flow to a nation that many had deemed uninvestible.”
President Tinubu’s bold actions, including removing restrictions on the naira currency that allowed it to hit a record 790 to the dollar and subsidy removals that tripled petrol prices, could take stress off the battered finances of Africa’s largest economy, the report said.
It quoted Tunde Ajileye, a partner at Lagos-based SBM Intelligence, as saying,
“The reaction is one of, ‘finally’, … If this stays, then it would mean that (Tinubu) had been able to remove the two subsidies that have crippled Nigeria fiscally and monetarily for the last decade.”
FG MAY MERGE CUSTOMS, NIMASA, FIRS
Meanwhile, the Federal Government may merge the Federal Inland Revenue Service, Nigerian Customs Service, and the Nigerian Maritime Administration and Safety Agency into the Nigerian Revenue Service in order to enable an efficient collection of all direct and indirect taxes, as well as levies on behalf of the government.
This is contained in one of the considerations presented to President Bola Tinubu by his Policy Advisory Council.
In the report sighted by The Point on Thursday, the policy will be aided by the passage of an Emergency Economic Reform Bill which will grant the President special powers to drive the economic reform agenda and support the delivery of sustainable and inclusive economic growth.
The council further outlined the removal of fuel subsidy, sale or concession of select government assets, transition to a transparent, unified foreign exchange rate system, deepening tax collection and optimization of operating expenditure to reduce cost, as targets to be pursued by the President towards the achievement of some milestones within the first 100 days in office.
Members of the Policy Advisory Council are Senator Tokunbo Abiru (chairman), Dr. Yemi Cardoso, Sumaila Zubairu and Dr. Doris Anite.
The council’s report, which focuses on fiscal and monetary policies, industry, trade and capital market reforms, emphasised that changes in the Central Bank of Nigeria and temporary increases in fiscal circuit breakers such as debt limits would help achieve N1trn Gross Domestic Product growth and over 50 million jobs for citizens in eight years.
The 90-page document further proposed that reforms in the CBN would help achieve about $50bn-$60bn in external reserves, with a monthly inflow of at least $6bn-$8bn from export earnings and other forms of capital inflow, to support the policy at an exchange rate of N500-N600/$.
On fiscal policies to be implemented, the council advised on the need to achieve a domestic refining capacity of two million barrels per day, while creating economic opportunity for the host communities.
They also proposed one-off Personal Income Tax reliefs for low-income earners for up to one year as non-cash palliatives to cushion the effect of fuel subsidy removal.
The advisory read, “Ramp up production capacity to four million barrels from offshore and onshore assets within four years and grow crude oil revenue and savings into ECA and NSIA.
“Formalise illegal refineries and encourage modular refineries to create economic opportunity for the host communities.
“Aggressively grow domestic refining capacity to 2 million barrels per day in the next 8 years, including modular refineries.
“A policy directive that ensures proceeds from the sale of assets to settle existing FGN debt obligations.
“List shares of strategic and profitable NNPC subsidiaries. Privatise, concession or sell down FGN’s stake in corporate assets to partners and other investors (possibly with a buyback option) to generate liquidity in the short to medium terms (focus on sub-optimal assets e.g., NNPCL refineries).
“Leverage blockchain to create and provide access to a Government land registry and regionalise and concession the power transmission grid.”