More Difficult Decisions Lie Ahead Before… – FG

The Federal Government has said President Bola Tinubu has fulfilled his promise on the economy and other sectors since assuming office a year ago.

The government also said that ‘more difficult decisions lie ahead before Nigeria is reshaped and growing economically to the benefit of its citizens and the wider continent of Africa.’

In an article published on a UK news website, Comment Central, on Thursday, the Minister of Information and National Orientation, Mohammed Idris, said President Tinubu has initiated some reforms his predecessors have failed to attempt while in office.

Idris also hinted that the President removed the fuel subsidy which gulps $6 billion annually, floated the Naira, and instituted a series of other reforms including changes to the tax code and waivers for foreign investors in critical industries including mining, energy, and infrastructure.

He also said the President stopped the artificial prop-up of the exchange rate, which led to the draining of the national budget while creating a black market in money exchange.

And that though the price of fuel has increased, Foreign Direct Investment inflows into the country have also moved up.

He wrote, “The border between Nigeria and Benin was, for decades, one of the busiest crossings in Africa. Thousands of trucks each year would transit, taking precious cargoes of petrol from the largest economy in Africa for sale in one of the smallest. Now that trade has all but stopped.

“Usually when cross-border trade declines it is a sign of economic regression, but in this case, it is the result of sound policy: the ending of a petrol subsidy that was costing Nigeria annually more than the state budget for health and education combined.

“This was no fault of our neighbours, but rather of our own making, and this $6 billion annual bung was leaking low-cost subsidised petrol sold beyond our borders while the Nigerian taxpayer ultimately paid for it.

For decades politicians of all parties could see this reckless subsidy was killing the economy and the federal budget while being widely abused for profit. Its end was repeatedly promised but never brought.

“The same has been the case with floating our currency, the Naira – a decision repeatedly delayed. Instead, we continued to artificially prop up the exchange rate – leading to a further and constant draining of the national budget while creating a black market in money exchange.

No country in the world is free of politicians ducking hard political decisions. What is different is that now, nearly a generation after the return of democracy, Nigeria has a president willing to put his credibility and re-election on the line to drive through the reforms which are needed.

“Since taking office a year ago, President Tinubu has done what he promised on the economy: he has removed the fuel subsidy, floated the Naira, and instituted a raft of other reforms including changes to the tax code and waivers for foreign investors in critical industries including mining, energy, and infrastructure.”

The minister stated that President Tinubu dealt with security challenges facing the country and refused to pay ransoms to bandits and terrorists.

He added: “On security he has moved decisively too, refusing to pay ransoms to kidnappers and – when 137 schoolchildren were taken hostage in Kaduna State in March – instead sent in the military.

“Contrast this with ten years ago and the tragedy of Chibok where 276 schoolgirls were kidnapped by the terror group Boko Haram. It took the administration of then President Goodluck Jonathan more than two weeks even to publicly acknowledge the disaster had occurred.