The newly sworn-in president of Nigeria, President Bola Tinubu, has stated that his administration wants to increase the GDP of the nation by “not less than 6%.”
As part of a larger strategy to modernise the largest economy in Africa, the president also presented a plan to align the country’s various exchange rates.
The statistics agency set the projected growth rate at 3.1%, which is nearly twice what it was last year.
The International Monetary Fund forecasts that Nigeria’s GDP would expand by 3.2% this year, compared to the World Bank’s expectation of 2.8% growth.
President Tinubu stated that he is relying on budgetary changes and a variety of other initiatives to accomplish that goal during his inauguration speech in Abuja.
While outlining the main points of his agenda, he said, “First, budgetary reform stimulating the economy without engendering inflation will be instituted,” adding that his team would provide further information in the days and weeks to come.
With an inflation rate of 22.2%, the new administration inherits a fiscal crisis in which almost all of the government’s revenue is used to pay off debt. Inflation is also rapidly nearing its highest level in 18 years.
The administration also has to deal with a debt load that is currently worth around N70 trillion and raises questions about its fiscal viability.
The president said, “Industrial policy will use the full range of fiscal measures to promote domestic manufacturing and reduce import dependency.”
He committed to looking into the issues of both domestic and international investors over various taxes and “various anti-investment inhibitions.”
Monetary Policies
According to President Tinubu, the Central Bank of Nigeria (CBN) would work to harmonise Nigeria’s various exchange rates. He also anticipates “housecleaning” of the monetary policy structure.
He revealed that pursuing a single exchange rate will assist in shifting money away from arbitrage into beneficial projects including investment in machinery, equipment, and job development.
He hopes to lower interest rates to encourage investment in ways that will promote economic growth.
The president made fun of the CBN for carrying out the recent unsuccessful currency swap in a hurried manner.
“The policy has to be examined. My administration would treat both currencies as legal tender in the interim, he said.
