Newly sworn-in President of the Federal Republic of Nigeria Bola Ahmed Tinubu in his inaugural speech declared the removal of fuel subsidies indicating his administration does not have any fuel reserves.
According to the 16th President of Nigeria, fuel subsidies are not justified, He also said the money would be directed to other sectors. “We applaud the outgoing administration’s decision to phase out the fuel subsidy regime, which has increasingly favored the wealthy over the poor. Given the depletion of resources, subsidies can no longer be justified by their rising costs. Instead,
“We shall re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions,” he said. He argued that monetary policy needed a serious spring cleaning.
A unified exchange rate must be pursued, according to Tinubu. By doing this, money will be diverted from arbitrage and invested wisely in the infrastructure, tools, and jobs that drive the real economy. “Interest rates must be lowered to spur consumer spending and investment in ways that support an expanding economy. “Despite the currency swap’s theoretical advantages, given a large number of unbanked Nigerians, the CBN applied it too harshly. The policy needs to be examined. My administration will treat both currencies as legal tender in the interim. “The president further assured that the current import rate was excessive and unfriendly to business. In order to accomplish this, he promised to lower the rate.
