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Tinubu didn’t create current economic problems, Presidency replies New York Times

Published

3 months ago

June 17, 2024

President Bola Ahmed Tinubu

Tinubu didn’t create current economic problems, Presidency replies New York Times

The presidency has declared that the present economic crisis being experienced by Nigerians was caused by the previous administration and not the present government.

Bayo Onanuga, Special Adviser to President Bola Ahmed Tinubu on Information and Strategy, reacted Sunday in a statement to a piece on the Nigerian economy titled ‘Nigeria Confronts Its Worst Economic Crisis in a Generation’ published by the New York Times.

He said the article was not only predetermined but a “reductionist, derogatory, and denigrating way foreign media establishments reported African countries for several decades.”

In trying to put the report in perspective, the presidency said, “President Tinubu did not create the economic problems Nigeria faces today. He inherited them. As a respected economist in our country once put it, Tinubu inherited a dead economy,” adding that, “The economy was bleeding and needed quick surgery to avoid being plunged into the abyss, as happened in Zimbabwe and Venezuela.”

Onanuga noted that the above scenario was the background to the policy direction taken by the government in May/June 2023, “the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.”

The presidential aide said: “For decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens.

“The state oil firm, NNPC, the sole importer, had amassed trillions of naira in debts for absorbing the unsustainable subsidy payments in its books. By the time President Tinubu took over the leadership of the country, there was no provision made for fuel subsidy payments in the national budget beyond June 2023. The budget itself had a striking feature: it planned to spend 97 percent of revenue servicing debt, with little left for recurrent or capital expenditure.”

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The presidency disclosed that the previous administration had resorted to massive borrowing to cover such costs. “Like oil, the exchange rate was also being subsidised by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy.

“By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 BDCs that were previously licensed by the Central Bank. What was more, the country was failing to fulfil its remittance obligations to airlines and other foreign businesses, such that FDIs and investment in the oil sector dried up and, notably, Emirate Airlines cut off the Nigerian route,” it said.

It added that President Tinubu had to deal with the “cancer of public finance on the first day by rolling back the subsidy regime and the generosity that spread to neighbouring countries. Then, his administration floated the naira.

“After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored, though there remain some challenges. The exchange rate is now below N1500 to the dollar, and there are prospects that the naira could regain its muscle and appreciate to between N1000 and N1200 before the end of the year.

“The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.”

The presidency also stated that inflationary rate is slowing down, as shown in the figures released by the National Bureau of Statistics for April, adding that, “Food inflation remains the biggest challenge, and the government is working very hard to rein it in with increased agricultural production.

“The Tinubu administration and the 36 states are working assiduously to produce food in abundance to reduce the cost. Some state governments, such as Lagos and Akwa Ibom, have set up retail shops to sell raw food items to residents at a lower price than the market price.

“The Tinubu government, in November last year, in consonance with its food emergency declaration, invested heavily in dry-season farming, giving farmers incentives to produce wheat, maize, and rice. The CBN has donated N100 billion worth of fertiliser to farmers, and numerous incentives are being implemented. In the western part of Nigeria, the six governors have announced plans to invest massively in agriculture.”

Tinubu didn’t create current economic problems, Presidency replies New York Times

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BREAKING: FG declares Tuesday public holiday to celebrate 64th Independence

Published

12 hours ago

September 28, 2024

Trends Admin

Minister of Interior, Dr Olubunmi Tunji-Ojo

BREAKING: FG declares Tuesday public holiday to celebrate 64th Independence

The Federal Government has declared Tuesday, 1st of October 2024, as a public holiday to commemorate the Nation’s 64th Independence Day Anniversary.

The Minister of Interior, Dr. Olubunmi Tunji-Ojo, who made the declaration on behalf of the Federal Government, congratulated Nigerians at home and abroad on this occasion.

In a statement signed Saturday in Abuja, by the Ministry’s Permanent Secretary, Dr. Magdalene Ajani, the minister praised the patient and hardworking Nigerian men and women, stating that their sacrifices will not be in vain.

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Aligning himself with the theme for the Anniversary, the Minister reiterated the need for Nigerians to reflect on the labour of our heroes past and be inspired for the tasks ahead, realizing that a Nigeria of our dream can only be built when we unite.

While wishing Nigerians a Happy Independence Day Anniversary, Dr. Tunji-Ojo urged the citizens to continue to be steadfast in nation-building.

BREAKING: FG declares Tuesday public holiday to celebrate 64th Independence

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Tinubu makes new appointments

Published

12 hours ago

September 28, 2024

Trends Admin

President Bola Ahmed Tinubu

Tinubu makes new appointments

President Bola Tinubu has taken a significant step toward establishing the North West Development Commission (NWDC) by submitting the names of its inaugural Governing Board members to the Senate for approval.

This action follows the President’s recent signing of the North West Development Commission Bill into law on July 24, further advancing the Commission’s formation aimed at the socio-economic development of the region.

According to a statement released by Mr. Bayo Onanuga, Special Adviser on Information and Strategy, Tinubu has nominated Amb. Haruna Gindau from Jigawa to serve as the Board Chairman. Additionally, Prof. Abdullahi Ma’aji from Kano has been selected as the Managing Director and Chief Executive Officer (MD/CEO).

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Other key nominations for the Board include Dr. Yahaya Umar Namahe (Sokoto), Hon. Aminu Suleiman (Kebbi), and Sen. Tijani Yahaya Kaura (Zamfara). The President also nominated Hon. Abdulkadir S. Usman (Kaduna), Hon. Engr. Muhammad Ali Wudil (Kano), Shamsu Sule (Katsina), and Nasidi Ali (Jigawa) as members of the Board.

The newly appointed members are expected to bring their experience and knowledge to advance the Commission’s mission of driving development across the North-West region.

The NWDC aims to promote economic growth, social development, and empowerment within the region. The statement emphasized the President’s dedication to supporting the Commission in achieving its development goals.

Tinubu makes new appointments

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Wike approves recruitment of 900 health workers, okays 25% salary increase for nurses

Published

12 hours ago

September 28, 2024

Trends Admin

Federal Capital Territory Minister, Nyesom Wike

Wike approves recruitment of 900 health workers, okays 25% salary increase for nurses

The Federal Capital Territory Administration (FCTA) has announced plans to recruit 900 healthcare workers to strengthen staffing in its hospitals.

The decision was disclosed by Dr. Babagana Adams, the Permanent Secretary of the Health and Environment Services Secretariat (HESS), during an awards dinner hosted by the National Association of Nigeria Nurses and Midwives (NANNM) FCT Council.

The event, which served as the conclusion of the 2024 FCT Nurses Week, began with Jumaat prayers on Sept. 20 and culminated with the awards night.

Adams revealed that FCT Minister Nyesom Wike has given the green light for the recruitment of the healthcare personnel.

Additionally, approval has been granted for the hiring of 342 other health professionals, with recruitment efforts expected to commence shortly.

In further remarks, Adams stated his intention to submit a proposal advocating for the establishment of a dedicated village for health professionals before the end of the current administration.

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He also indicated that plans were underway to enhance transportation for nurses, with discussions already initiated with WEMA and Zenith banks to facilitate this support.

He emphasized that the forthcoming proposal would include a seamless payment system for these initiatives.

Speaking at the event, Mr. Jama Medan, Chairman of the NANNM FCT Council, called for the expansion of hospitals across the FCT, noting that many districts lack adequate healthcare facilities. He highlighted that the growing population in the FCT has far exceeded the capacity of existing hospitals, underscoring the need for more infrastructure and medical equipment.

Medan encouraged nurses to remain dedicated to their profession despite the challenges of heavy workloads, urging them to resist the temptation to migrate abroad or switch careers. He praised Minister Wike’s efforts to improve conditions in the FCT, expressing optimism that the hard work of healthcare professionals would soon be rewarded.

“The minister has already made significant strides, beginning with the approval of a 25% salary increase and other benefits for nurses,” Medan noted.

During the event, the award for the Best Nurse in the FCT was presented to Rosemary Okoroafor from Karshi General Hospital. The honor was bestowed by Dr. Esther Osunluyi, representing the National Association of Nigerian Nurses in North America.