Bola Tinubu pledges a slew of reforms as he takes the helm in Nigeria
Tinubu inherits a struggling economy with record debt and shortages of foreign exchange and fuel, as well as a weak currency
29 May 2023 - 18:54
by Felix Onuah and MACDONALD DZIRUTWE
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Nigeria's President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria, on May 29 2023. Picture: TEMILADE ADELAJA/REUTERS
Abuja — Nigeria’s President Bola Tinubu vowed at his swearing-in on Monday to expand the economy by at least 6% a year, lift barriers to investment, create jobs and unify the exchange rate, while also tackling rampant insecurity.
Tinubu inherits a struggling economy with record debt, shortages of foreign exchange and fuel, a weak currency, an inflation rate that is running at a near 20-year high, skeletal power supplies and falling oil production due to crude theft and underinvestment.
Protectionist policies and foreign currency interventions under predecessor Muhammadu Buhari have spooked investors.
“On the economy, we target a higher GDP growth and to significantly reduce unemployment,” Tinubu said, adding that this would be achieved through budgetary reform, boosting power generation and improving food security.
“I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxation and various anti-investment inhibitions.”
Tinubu took his oath in an open-air ceremony in the capital’s Eagle’s Square. Buhari departed to his rural home in northern Katsina state afterwards.
The former Lagos state governor and member of Buhari’s party said a popular but costly fuel subsidy will be gone in line with the 2023 budget that set its removal from June.
He also promised “thorough house cleaning” of monetary policy, adding that the central bank should work towards a unified exchange rate.
“This will direct funds away from arbitrage into meaningful investment in the plants, equipment and jobs that power the real economy,” he said.
Divided country
Tinubu inherits a divided country after his disputed victory that is being challenged in court by his main rivals who see him as a member of the old guard.
But Tinubu said his electoral victory was fair. “My supporters, I thank you. To those who voted otherwise, I extend my hand across the political divide. I ask you to grasp it in national affinity and brotherhood,” he said.
The February election had galvanised young voters hoping for a break from the two parties that have dominated Nigerian politics since military rule ended in 1999. But what authorities promised would be the freest and fairest election yet ended in frustration for many.
Tinubu said he would tackle widespread violence in Nigeria by reforming the security services with more personnel and improved training, equipment and pay.
Buhari has touted successes in a 13-year fight against jihadist insurgents in the northeast, where his government ramped up military spending.
But insecurity has spread. Killings and kidnappings for ransom are rampant in the northwest. Separatist and gang violence plague the southeast, and clashes between farmers and herders persist in hinterland states known as Nigeria’s Middle Belt.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Bola Tinubu pledges a slew of reforms as he takes the helm in Nigeria
Tinubu inherits a struggling economy with record debt and shortages of foreign exchange and fuel, as well as a weak currency
Abuja — Nigeria’s President Bola Tinubu vowed at his swearing-in on Monday to expand the economy by at least 6% a year, lift barriers to investment, create jobs and unify the exchange rate, while also tackling rampant insecurity.
Tinubu inherits a struggling economy with record debt, shortages of foreign exchange and fuel, a weak currency, an inflation rate that is running at a near 20-year high, skeletal power supplies and falling oil production due to crude theft and underinvestment.
Protectionist policies and foreign currency interventions under predecessor Muhammadu Buhari have spooked investors.
“On the economy, we target a higher GDP growth and to significantly reduce unemployment,” Tinubu said, adding that this would be achieved through budgetary reform, boosting power generation and improving food security.
“I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxation and various anti-investment inhibitions.”
Tinubu took his oath in an open-air ceremony in the capital’s Eagle’s Square. Buhari departed to his rural home in northern Katsina state afterwards.
The former Lagos state governor and member of Buhari’s party said a popular but costly fuel subsidy will be gone in line with the 2023 budget that set its removal from June.
He also promised “thorough house cleaning” of monetary policy, adding that the central bank should work towards a unified exchange rate.
“This will direct funds away from arbitrage into meaningful investment in the plants, equipment and jobs that power the real economy,” he said.
Divided country
Tinubu inherits a divided country after his disputed victory that is being challenged in court by his main rivals who see him as a member of the old guard.
But Tinubu said his electoral victory was fair. “My supporters, I thank you. To those who voted otherwise, I extend my hand across the political divide. I ask you to grasp it in national affinity and brotherhood,” he said.
The February election had galvanised young voters hoping for a break from the two parties that have dominated Nigerian politics since military rule ended in 1999. But what authorities promised would be the freest and fairest election yet ended in frustration for many.
Tinubu said he would tackle widespread violence in Nigeria by reforming the security services with more personnel and improved training, equipment and pay.
Buhari has touted successes in a 13-year fight against jihadist insurgents in the northeast, where his government ramped up military spending.
But insecurity has spread. Killings and kidnappings for ransom are rampant in the northwest. Separatist and gang violence plague the southeast, and clashes between farmers and herders persist in hinterland states known as Nigeria’s Middle Belt.
Reuters
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