According to the Lagos Chamber of Commerce and Industry, the reforms initiated by Bola Ahmed Tinubu, Nigeria’s president have so far stunted the growth of the business sector in the country. The reforms which include the unification of the country’s currency rates and the removal of gasoline subsidies have in the three months since its introduction been detrimental to Nigeria’s economy.
This information was relayed by deputy-president Gabriel Idahosa who represented the president of the LCCI, Michael Olawale-Cole, during the half-year economic review organized by the chamber in Lagos recently.
Michael Olawale-Cole noted that the Nigerian economy has suffered numerous setbacks since the year began owing to a number of complex issues, as reported by the Nigerian news outlet, The Punch Newspaper.
“Business conditions and operating environment in the first half of the year were largely difficult due to rising interest rates, inflationary pressures, foreign exchange volatility, and the liberalization of the downstream sector of the oil and gas industry,” he said.
Other industry experts present at the event shared similar sentiments, noting that the president’s initiatives have done nothing but derail the growth of the Nigerian economy because of how poorly they were executed.
The Chief Executive Officer of Economic Associates, Dr. Ayo Teriba during his speech, explained that the president failed to seek proper consultation before implementing his ideas, coupled with the fact that the administration has not been transparent with the economic situation it inherited from the previous government. In the CEO’s assessment, he claimed that consultation would have at least helped curb some of the negative effects that have trailed the president’s reforms.
“If we look at the economy as a patient, and look at the new government as a medical crew, it is important that they start with a diagnosis. Now that the regime has come in, it will help for them to release information that is purely diagnostic so we can have a focused conversation on how to solve the problems,” Teriba argued.
“Since the regime came in, right from the inauguration, the president told us that subsidy was gone. Two weeks later, we unified the exchange rate. I think that those prescriptions were made without any rigorous diagnosis,” he added. ’
Teriba continued by saying that granting the Nigerian National Petroleum Company Limited a monopoly over the petroleum sector was counterproductive to encouraging the kind of competition that would result in reasonable prices for petroleum goods. He also suggested that the country’s central bank needs an overhaul.
Another solution suggested by Teriba points to the Nigerian government raising revenue through equity financing as opposed to frequent borrowing and fundraising through traditional debt instruments such as bonds.