In his opening speech on May 29, 2023, President Bola Tanobo made it clear that his administration wants to change the business environment in the country.
The President emphasized that for his administration to fulfill his commitment to create a million new jobs in the digital sector, as his 80 -page manifesto, “a new hope: Action Plan for Better Nigeria”, it will have to provide real opportunities to Nigerian youth. The manifesto was seen as the main basis for his campaign. But the question that every Nigerian is asking is whether the new hope was a irony of the new problems, as was seen under President Buhari.
Although the president claims that these measures will completely change the economic environment of Nigeria by solving problems and promoting expansion for a long time, the real question that will be asked is: to what extent did they perform in the past year to meet these high goals?
When we are moving forward to find the facts, we will know if Tinobo’s economic policies can significantly improve and change the financial status of Nigeria as it has suggested in its manifesto.
We will closely study their economic policies, seeing every strategy, rationality, expected benefits, and related difficulties and current conditions. The purpose is to make it clear how these activities can affect the future of Nigeria’s economy.
This article attempts to review the economic policies of this existing administration.
1. Removing fuel subsidy
President Bola Tanobo’s 2023 economic reform list was the end of the fuel subsidy. According to the Nigerian Bureau of Statistics (NBS), Tinobo said that the government of petrol subsidy was over, which eliminated long -standing fuel subsidy and increased the fuel price by more than 152 %. However, these reforms have had a significant impact of the economy that has been implemented in less than a month after taking power. And its effects are seen in terms of astronomical inflation and exchange rates.
Of course, it can be argued that fuel subsidy is a corrupt scam, which was established to strengthen some political elite, but if it was not the other way, it would benefit the people.
It is very unfortunate that the help that every Nigeria seemed was just a few of the selected people to rich.
How can it be justified that markets are being subsidized to sell their citizens, ending in other countries?
This is a large -scale corrupt scheme, not only by the marketer but in collaboration with government officials.
However, one will also argue that the fuel subsidy was implemented.
Supporters of this claim show that it should have been eliminated phasedly, and should not be removed immediately, as it has caused deep trauma waves in many people’s lives, which cannot tolerate the immediate effect of removal.
As of August 22, 2023, a liter of PMS was sold in some circles in a thousand nirah.
Obviously, the removal of fuel subsidy should not be as sudden as it was. One should have taken a move to absorb the effects, and it could gradually be in the procession.
Note: It seems that this policy is being overturned.
2. Naira unity
The exchange rate was floating here, which created a Nira alliance between the price of the parallel market and the public market.
By creating a more stable and open foreign exchange environment, the purpose of this policy is to avoid market deterioration, unite the currency rate and attract international investment. The previous system was considered ineffective as it encouraged the capital flight and provided the possibility of mediation.
The market -powered exchange rate should improve openness and reduce the difficulty of renting and corruption, which were common in the previous system. In addition, by accurately representing the value of Nira, the more accurate exchange rate can increase the competitiveness of Nigeria’s exports, thus increasing non -oil exports.
But once again, the result was about 200 % of Naira’s deportation against the US dollar. The economy has been greatly affected by Nira’s floating, especially inflation. Due to the headline inflation rate of about 333.6 %, Nigeria now has to pay a higher price for needs and commodities.
In addition, food inflation, which is currently more than 40 %, further pressures the average person’s purchase capacity.
Staying in Nigeria is becoming difficult and difficult, and the cost of needs is going to height at all times. The decision to swim Naira and the sudden elimination of petrol subsidy has increased the cost of food.
Families and individuals face serious problems as a result of the rise in food prices. Since food prices are always increasing, households in Nigeria are eliminating purchases and abandoning customs.
3. Financial policy and tax reform
The Tanobo administration also outlined plans to increase the tax base, increase tax collection performance and increase revenue production, increased the tax rate without tax. According to the manifesto of Tanobo’s presidential campaign, he plans to deploy an expansion financial policy where budget costs are no longer linked to the country’s annual dollar -based oil revenue.
The President formed a presidential committee on financial policy and tax reforms, chaired by Taiwo Odheel, a former partner of the former financial policy and the African tax leader at the Price Water House Copers (PWC). The committee includes experts from both private and public sectors. The Committee’s goal is to promote a practical and cost -effective solution to several important issues: spread of revenue collection agencies, high costs associated with the administration of revenue, heavy compliance on ordinary taxpayers, lack of income between financial and other economic policies at various government levels, and lack of income.
However, the Nigerian tax administration system has long been inaccessible, corruption and poor compliance. Expanding the tax base will require a great improvement in the tax administration and the implementation. Small and medium -sized businesses (SMEs) may face difficulties if tax reforms are not implemented thinking. There is a danger that the more tax burden can hinder development in this important sector.
Conclusion
President Tanobo’s manifesto is an 80 -page document that outlined its plans for Nigeria and anchored the political messaging of its presidential campaign during the election season.
The successful implementation of these reforms will be important for their success. Ensuring that the benefits of reforms are fairly dispersed, the administration will need to overcome the immediate effects of inflation and increasing residential costs.
Maintaining the development of public support, social stability, and more flexible and comprehensive economy will be dependent on the balance between these goals.
We urge the government to revise some of their current policies and seek creative ways to reduce growing inconvenience that the poorest citizens of Nigeria should be tolerated. Support for the development of micro, small and medium -sized businesses (MSME), agriculture sector, and nationwide cottage industries is essential.