Categories: Economy And Business Headline

President Tinubu’s Economic Reforms May Be Faltering – Financial Times

Advertisement
Advertisement

Financial Times has suggested that President Tinubu’s Economic reforms may be faltering.

 

NewsOnline Nigeria reports that a London-based Financial Times publication has noted in an editorial that there are signs of President Tinubu’s economic reforms going not as planned, as the publication also noted that although President Tinubu started with a bang by removing fuel subsidies and moving towards a market-driven exchange, events in the past four months show that more work has to be done.

 

ALSO: FG Grants Approval of Retired Doctors, Nurses, Others As Contract Staff

 

It stated,

  • “In removing a costly fuel subsidy and in shifting towards a market-driven exchange rate, which has sharply weakened a previously overvalued currency, he has gone some way towards persuading investors he is serious about reform. But four months into his presidency, there are signs of things going awry,”

Removal of Godwin Emefiele

Going further, the report noted that the removal of Mr Godwin Emefiele, the former Governor of the Central Bank of Nigeria (CBN), raised eyebrows due to its unconventional nature, giving the impression of political reprisal.

Initially, Emefiele had been apprehended on charges related to the alleged unlawful possession of firearms.

The report said,

  • “The removal of Godwin Emefiele, the previous governor, was overdue. But its manner, initially via a charge of firearms possession, was odd and smacked of political revenge. More substantively, the new exchange rate regime has yet to be properly explained,”

New CBN leadership

On the new exchange rate regime and how the new CBN management can stabilize the financial system, it said the new CBN leadership will most likely increase the interest rates to curb inflation but opined that President Tinubu must guarantee the independence of the institution.

In their words,

  • “Markets consider Cardoso, a former Citibank Nigeria chair, to be a sound appointment. (The same cannot be said of all of Tinubu’s picks.) The incoming governor will probably need to raise rates at the next policy meeting to establish his inflation-busting credentials. Tinubu must restore institutional independence by leaving the bank to get on with its job. In other areas, the president needs to be more active – and more articulate.”

Tinubu needs to gain momentum

It further noted the new administration risks losing out on the gains of its earlier reforms and advised the President needs to properly explain his policies before announcing them.

It used the restoration of democracy as an example.

It stated,

  • “Only four months into his presidency, what started with a bang risks becoming a whimper. Tinubu needs to regain the momentum.”
Advertisement
NewsOnline Nigeria

Recent Posts

  • Brands & Marketing

Zenith Tech Fair 4.0 Ends On A High As Hackathon Winners Get N77.5m Cash Reward

A total sum of N77.5 million in prize money was won at the end of…

4 hours ago
  • Brands & Marketing

Dubai Racing Club Announces Zoho as Exclusive Technology Partner

Dubai Racing Club has announced Zoho as an exclusive technology partner.   NewsOnline Nigeria reports…

5 hours ago
  • Exchange Rates

BREAKING: CAC Deletes 80,000 Top Companies From Database (FULL LIST)

CAC has deleted 80,000 top companies from the database.   NewsOnline Nigeria reports that the…

5 hours ago
  • 2027 Election

Bode George Warns Atiku Abubakar Against Contesting 2027 Presidency

Bode George has warned Atiku Abubakar against contesting the 2027 Presidency.   NewsOnline Nigeria reports…

5 hours ago
  • Exchange Rates

Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, 22 November 2024

The black market dollar to Naira exchange rate on Friday 22 November 2024 can be…

5 hours ago
  • Economy And Business

BREAKING: ACF Chairman Suspended For Blasting President Tinubu Hardship Policies

ACF Chairman has been suspended for blasting President Tinubu's hardship policies.   NewsOnline Nigeria reports…

5 hours ago