President Bola Ahmed Tinubu yesterday declared that fuel “subsidy is gone”.
He said this at Eagle Square, Abuja, in his speech after he was inaugurated as President and Commander-in-Chief of the Armed Forces of the Federal Republic.
He commended the decision of the administration of former President Muhammadu Buhari to phase out the petrol subsidy regime which, he said, had increasingly favoured the rich over the poor.
Tinubu said the subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
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“We shall instead re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions.”
Tinubu, who also said Nigeria’s monetary policy needed thorough housecleaning, charged the Central Bank of Nigeria to work towards a unified exchange rate.
He said that would direct funds away from arbitrage into meaningful investment in the plants, equipment, and jobs that power the real economy.
The president said his administration would treat both new and old naira notes as legal tender, noting that despite its intended merits, the controversial currency swap policy of the CBN “was too harshly applied” given the number of unbanked Nigerians.”
Tinubu also stated that the current interest rates were too high for businesses to thrive and “need to be reduced to increase investment and consumer purchasing power in ways that sustain the economy at a higher level.
“The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender,” he stated.
On the economy, Tinubu said his administration would target higher GDP growth and significantly reduce unemployment.
He promised to offer budgetary reform that would stimulate the economy without engendering inflation.
“Second, industrial policy will utilise the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.
“Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well.”
Tinubu said his administration would review all complaints by investors about multiple taxations and “various anti-investment inhibitions.”
“We shall ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home.”
He said, “Security shall be the top priority of our administration because neither prosperity nor justice can prevail amidst insecurity and violence.”
To tackle unemployment, Tinubu, who restated the salience of creating “meaningful opportunities for our youth”, promised to honour his campaign commitment of one million new jobs in the digital economy.
On infrastructure, he said: “We shall continue the efforts of the Buhari administration on infrastructure. Progress towards national networks of roads, rail and ports shall get priority attention.”
He said his government would continue to take proactive steps such as championing a credit culture to discourage corruption while strengthening the effectiveness and efficiency of the various anti-corruption agencies.
The president appealed to Nigerians to bury political differences and join him in a new journey of healing, nation-building and economic prosperity.
Promising to be a president for all, irrespective of the circumstances of history and political differences, he charged Nigerians not to allow the opportunity for greater development of the country to slip away.
“Our constitution and laws give us a nation on paper. We must work harder at bringing these noble documents to life by strengthening the bonds of economic collaboration, social cohesion and cultural understanding. Let us develop a shared sense of fairness and equity.
“The South must not only seek good for itself but must understand that its interests are served when good comes to the North. The North must see the South likewise.
“Whether from the winding creeks of the Niger Delta, the vastness of the northern savannah, the boardrooms of Lagos, the bustling capital of Abuja, or the busy markets of Onitsha, you are all my people. As your president, I shall serve with prejudice towards none but compassion and amity towards all,” he said.
He said in its over 60-year history, Nigeria had endured hardships that would have made other societies crumble, but for its resilience and strength of diversity, the country had remained intact.
“To the surprise of many but not to ourselves, we have more firmly established this land as a democracy in both word and deed,” he said.
He said, “This handover symbolises our trust in God, our enduring faith in representative governance and our belief in our ability to reshape this nation into the society it was always meant to be.”
To advance the common vision of a better Nigeria, he sought the support of all Nigerians “to join me in making Nigeria a more perfect nation and democracy such that the Nigerian ideal becomes and forever remains the Nigerian reality.”
He said though the outcome of the election reflected the will of the people, his victory does not render him any more Nigerian than his opponents. “Nor does it render them any less patriotic.
“They shall forever be my fellow compatriots. And I will treat them as such. They represent important constituencies and concerns that wisdom dare not ignore,” he said.
He described the election that brought him to power as tough but fairly won and dedicated his victory to the country with a promise to do his all to advance its progress.
“This is the proudest day of my life. But this day does not belong to me. It belongs to you, the people of Nigeria.
“Our administration shall govern on your behalf but never rule over you. We shall consult and dialogue but never dictate. We shall reach out to all but never put down a single person for holding views contrary to our own.
“We are here to further mend and heal this nation, not tear and injure it.”
Tinubu, who said his “primary foreign policy objective must be the peace and stability of the West African sub-region and the African continent”, pledged to work with ECOWAS, the AU, and willing partners in the international community to end extant conflicts and resolve new ones.
Experts react
Meanwhile, various stakeholders, including a civil society organisation, have reacted to the speech of the new president, setting an agenda for his administration.
Commenting on the unification of the foreign exchange rate, the Chairman of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, said the move would increase investors’ confidence in the country and reflect the demand and supply fundamentals in the exchange market.
He argued that the single rate would enable adjustments of the naira price to other currencies as and when necessary, with the model being predictable, transparent and sustainable.
He added that this would also “enhance liquidity in the foreign exchange market, reduce uncertainty in the foreign exchange market, minimise discretion in the allocation of forex, and reduce corruption vulnerabilities.”
On fuel subsidy removal, Yusuf stated that there will be more revenue for the government and an unlocking of about N7 trillion into the federation account while reducing the fiscal deficit.
“The subsidy removal will eliminate the distortions and stimulate investment. We would see more private investments in petroleum refineries, petrochemicals and fertiliser plants. The post-subsidy regime would also unlock investments in pipelines, storage facilities, transportation and retail outlets,” he said.
He posited that it would culminate in import substitution as petroleum product importation progressively declined, thereby conserving foreign exchange and boosting our external reserves.
“Smuggling of petroleum products across the borders will come to an end with the market pricing of refined products.
“Meanwhile, we need to put an end to the NNPC monopoly in the supply of petroleum products. Competition is imperative for subsidy removal to be sustainable.”
He, however, called for the introduction of palliatives, which should be segmented into immediate, short-term and medium-term deliverables.
Inaugural speech showed rare intent to take tough decisions – Kari
An associate professor of Political Sociology, University of Abuja, Dr Abubakar Umar Kari, said the speech of President Tinubu showed rare intent and resolve to take tough decisions from the onset with the position on fuel subsidy as well as the unity and inviolability of the sovereignty of the country.
He said: “For me, it was a good speech: lucid, loaded and replete with key pronouncements, including a few with strong policy ramifications, but which could also shock and awe.
“Take, for instance, the definite statement on fuel subsidy removal. His unambiguous position on this very controversial, even dangerous, subject, shows rare intent and resolve to take tough decisions from the onset. The same can be said about his decision to abolish the multiple foreign exchange regime as well as reduce the lending rate.
“Also significant in the speech is Tinubu’s avowed commitment to safeguarding the unity and inviolability of the sovereignty of the country, which was a veiled warning to centrifugal forces and divisive elements that have been having a field day in recent times. It is equally significant that he pledged to complete Buhari’s key infrastructural projects.”
You need strategic planning, experts – CDD advises new gov’t
While reacting, the Director, Centre for Democracy and Development (CDD), Idayat Hassan, in a statement yesterday, tasked the new administration to confront Nigeria’s pressing challenges with strategic planning, sound financial management and expert advice.
She, therefore, called on Nigerians to rededicate themselves to the principles of democracy, social cohesion and national unity.
NUPENG wants PIA goals achieved
The leadership of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), on Monday, urged President Tinubu to implement the Petroleum Industry Act (PIA) signed by his predecessor into law to achieve its objectives of having a petroleum industry that will be accountable, rewarding and transparent in financials, governance and responsiveness to the needs and yearnings of communities and stakeholders.
The advice was contained in a congratulatory message to the new president and his deputy, Shettima, and signed by NUPENG’s president and general secretary, Prince Williams Akporeha and Afolabi Olawale, respectively.
By Muideen Olaniyi, Abbas Jimoh, Sunday M. Ogwu & Idowu Isamotu
