NESG: Forex Reforms, Fuel Subsidy Removal Have Worsened Structural Issues
According to the Nigerian Economic Summit Group (NESG), the implementation of fuel subsidy removal and exchange rate reforms – which were carried out in quick succession by President Bola Tinubu’s administration – has had “unintended adverse effects, exacerbating existing structural issues”.
This is as the Minister for Budget and Economic Planning, Senator Abubakar Bagudu, inaugurated the Joint Planning Committee (JPC) for the 30th Nigerian Economic Summit (NES#30) in Abuja, yesterday.
NESG Vice Chairman, Mr. Omoboyede Olusanya, also said the inability to translate economic growth into improved living standards for all its citizens remained one of the country’s pressing concerns.
He said despite experiencing growth, the country still grapples with rising unemployment, income disparity, and multidimensional poverty.
Nevertheless, Olusanya, who is Chairman, NES#30 Anniversary Committee, pointed out that international organisations have applauded the long overdue reforms, and revised Nigeria’s credit rating outlook to positive from stable.
He also said twin reforms had led to significant improvement in the country’s current account, FAAC allocation and Foreign Direct Investment (FDI) inflows.
He said NES had played a crucial role in shaping Nigeria’s economic policies and development strategies over the years, adding that its advocacy and recommendations have led to significant reforms in the banking, telecommunications, maritime and the energy sectors among others.
He said the privatisation of state-owned enterprises had liberalised the telecommunications industry as well as moved Nigeria towards a more efficient, competitive, and diversified economy.
However, Bagudu, while inaugurating the committee, noted that the annual summit had provided a veritable platform for dialogue among policy makers, corporate leaders, organised private sector, civil society organization as well as development partners.
He said the summit had also provided the opportunity to strengthen the existing mutual and symbiotic relationship between the public and private sectors in the overall interest of the country.
Represented by the ministry’s Permanent Secretary, Mr. Nebeolisa Anako, the minister stressed that key outcomes of the previous summits have always played important roles in shaping the policies of government.
In particular, he said the summit had contributed to entrenching the culture of development planning in the country.
He said most recently the partnership helped in no small measure in the development of the National Development Plan (NDP), 2021-2025, and the Nigeria Agenda 2050, as well as provided invaluable policy recommendation for the government.
Bagudu said, “The contributions of the Nigeria Economic Summit Group as a worthy partner to the government is well appreciated. I am confident that this partnership will continue to endure going forward.
“The Nigerian Economic Summit has provided a credible and widely recognised platform for forging understanding and consensus on the national economic policy direction and growth strategies.
“Over the past 30 years, national and global policymakers and business leaders have acknowledged that the annual NES is the premier platform for public-private dialogue in Nigeria.”
The minister said the JPC for NES#30 will among other tasks, review the events/outcomes of the 29th economic summit; Make all preparatory arrangements for the successful hosting of the 30th Nigerian Economic Summit (NES#30), including developing programme of events and timelines for the implementation of the key activities at the summit; Articulate the budgetary requirements, and the sources of funds for hosting the summit;
Propose the optimal strategy for funding the activities of the JPC and the summit; Mobilise relevant public and private sector stakeholders especially at the federal, state and local governments, as well as development partners and other key stakeholders.
The committee is also expected to prepare the Green Book for the NES#30, within three months of the completion of the summit; and undertake any other work that may help in the successful hosting of the summit.
