Tinubu economic policies losing steams—analysts

Analysts have noted that there are signs of President Bola Tinubu’s economic reforms going not as planned with the country’s inflation and other indices going south.

Recall that President Tinubu had in his inauguration speech announced the removal of the controversial fuel subsidies, and the following month devalue the naira towards a market-driven exchange rate, but events in the past four months show that more work has to be done

The analysts expressing their minds in an editorial published by London-based Financial Times publication stated that in removing a costly fuel subsidy and in shifting towards a market-driven exchange rate, which has sharply weakened a previously overvalued currency, Tinubu 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,”

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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,”

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.

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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.”

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.

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It stated, “Only four months into his presidency, what started with a bang risks becoming a whimper. Tinubu needs to regain his momentum.”