Nigerians Must Face Painful Economic Reforms-Tinubu

              Mohammed Shosanya

President Bola Tinubu,has said that t Nigerians must face the current painful economic reforms introduced by his administration,saying they are inevitable.

He disclosed this on Monday in Abuja at the opening ceremony of the 30th Nigerian Economic Summit(NES#30), jointly organised by the Nigerian Economic Summit Group (NESG) and the Federal Ministry of Budget and Economic Planning.

He was represented at the event by the Vice President,Senator Kashim Shettima, who said some of the administration’s policy decisions are hard and painful but inevitable.

“My heart and the heart of President Bola Tinubu go out to Nigerian people who are bearing the brunt of the current reforms, particularly, the poor. But we have other option,” he said.

He advocated the need for partnership between the public and private sectors to overcome the challenges confronting the country and create a new lease of life for the citizenry.

He added:”This Summit has been a call  for government and private sector stakeholders  to exchange ideas, debate policy and identify innovative solutions to Nigeria’s social and economic challenges.

“The theme of this year’s summit: ‘Collaborative Action for Growth: Competitiveness and Stability,’  is more appropriate as it encapsulates the pressing need for concerted efforts to address the multidimensional issues we currently face”.

 Nigeria,he said,has experienced significant economic problems over the past few years.

He also said,the challenges have been global as well as domestic,  ranging from the COVID-19 pandemic  and fluctuating oil prices to internal security issues, inflation and structural weaknesses in our economy such as over-reliance on oil revenue and lack of economic diversification.

According to him,Nigeria’s growth trajectory has been volatile, heavily dependent on oil revenues and unable to create enough jobs to keep pace with the country’s rapidly growing population.

He added:”As a nation,we must prioritise economic diversification. Your role in this process is crucial.Considering this, the present administration, through the Renewed Hope Agenda  has embarked on bold and courageous reforms designed to create an environment that fosters sustainable economic growth  and shared prosperity.

“Our focus is on sectors that can offer inclusive and sustainable growth such as agriculture, manufacturing and the digital economy.”

In his welcome address,Chairman  of the NESG,Mr. Olaniyi Yusuf, urged the

government to prioritise institutional reforms reduce the cost of governance as well as implement Steve Oronsaye Report.

He said: “Government must prioritise institutional reforms especially reduction of cost of governance, for instance, by implementing the Oronsaye report and accelerating the privatisation and commercialisation of many under-performing national assets to attract private capital and expertise, and to optimise the usage of our commonwealth for the benefits of all Nigerians.

“Government must implement its electoral promises by aligning policy, programmes, performance and productivity to ensure we seize the opportunities of today and take full advantage of the prospects of tomorrow.”

He acknowledged some areas where the present administration has recorded successes, following the removal of fuel subsidies and liberalisation of the exchange rate.

He said:”Encouragingly,our external economic position has also improved. The removal of fuel subsidies and the liberalisation of the exchange rate contributed to a trade surplus of N12.1 trillion in the first half of 2024— double that of 2023.

“Government revenues surged, with FAAC allocations reaching N18.23 trillion, an increase of 82 percent over the previous year. Foreign investment inflows have also tripled, boosting our foreign reserves.”

The Chaiman of NESG disclosed that these gains have been tempered by  macro-economic instability.

He said: “The naira has depreciated by over 72 percent against the dollar, and inflation remains elevated at 32.2 percent, placing immense pressure on citizens and the economy.

“Our fiscal situation remains a significant concern. Public debt reached N121.67 trillion by the first quarter of 2024, pushing our debt-to-GDP ratio to 52.9 percent.

“The debt service-to-revenue ratio is still high at 68 percent – underscoring the urgent need for fiscal reforms to put our nation back on a sustainable path.

“Our citizens ultimately bear the cost of economic fragility. Per capita income is projected to fall to approximately US$1,000 by the end of 2024, down significantly from US$2,162.60 in 2022.Multidimensional poverty now affects 62.9 percent of Nigerians, while an estimated 104 million live in poverty.

“The Global Hunger Index score of 28.3 points reflects our deepening food insecurity, and unemployment remains a daunting challenge, with 92.3 percent of the workforce in the informal sector.

“Many citizens have become poor, the poor are getting poorer and the average Nigerian is facing very difficult times.

“We need to do more, do better and faster, to provide social safety nets, reduce inflation, create jobs, improve food security and transportation logistics to address the cost of living crisis. We must foster social cohesion and a strong sense of solidarity amongst our citizens.”