CPPE Tasks FG on Measures to Mitigate Pains of Economic Reforms

*Urges CBN to evolve framework to moderate volatility in forex market 

*Hasten palliatives for citizens, PDP chieftain tells Tinubu

in Lagos and Gbenga Sodeinde in Ado Ekiti

The Centre for the Promotion of Private Enterprise (CPPE), has urged the federal government to deploy measures that would mitigate the pains inflicted by its current economic reforms on key sectors of the economy.

It also tasked the Central Bank of Nigeria (CBN) to put in place a sustainable intervention framework to moderate the volatility in the foreign exchange market.
These were contained in the 2023 “Half Year Economic Review” that was issued by an Economist and Chief Executive Officer of the CPPE, Dr. Muda Yusuf, which stated that Nigeria currently has a better fiscal space with an outlook for lower fiscal deficit, moderation in the growth of public debt, reduction in debt service burden, and an improvement in the macroeconomic stability are very positive.
Yusuf also said the President Bola Ahmed Tinubu’s administration is currently charting a laudable positive course for the Nigerian economy that portends bright prospects for economic recovery and growth.    

He, however, added that, “the Tinubu’s administration needs to promptly deploy measures to mitigate the current headwinds inflicted by the current reforms.  
“The interventions should be a mix of direct interventions, tax incentives for low-income employees and small businesses, reduction in import duty on some critical intermediate products for key sectors of the economy, import duty concessions for the transportation, health, power and energy sectors.
“The improved fiscal space created by the reforms should make these mitigating measures feasible and they have to be implemented urgently in order to give the current reforms a human face.”

The economist added that, “with a better fiscal space, the outlook for lower fiscal deficit, moderation in the growth of public debt, reduction in debt service burden, and an improvement in the macroeconomic stability are very positive.  All of these would impact on economic growth prospects in the second half of the year.”

Yusuf pointed out that there were already clear indications of elevated investors’ confidence, improvement in the government fiscal space, higher prospects of exchange rate stability in the near term and positive expectations of better economic governance.
He also commented on the recent developments in the monetary management during the second half of the year, stating that, “the short to medium term outlook for foreign exchange liquidity is very good and prospects of increased inflow of capital are very bright.”

He, however, observed that the CBN should put in place a sustainable intervention framework to moderate the volatility in the foreign exchange market.
According to him, “there is an urgent need to address the social outcomes of the recent reforms, especially the inflationary pressure induced by the fuel subsidy removal. Urgent measures need to be put in place to mitigate the soaring cost of living and the escalating operating and production costs, especially for of businesses.

“Inflationary pressures may intensify in the near term; the exchange rate may come under pressure in the short term as foreign exchange demand backlog exerts pressure on the official FX window. But the pressure is expected to ease before the end of the year.
“This would pave way for an equilibrium exchange rate, which would be more tolerable and sustainable. However, the CBN should put in place a sustainable intervention framework to moderate the volatility in the FX market.”

Relatedly, as the effects of the fuel subsidy removal bites harder on the masses, a chieftain of the Peoples Democratic Party (PDP), Dr. Olusola Jimoh, has called on President Bola Tinubu to act fast in providing the expected palliatives for the citizens.
He explained that the sufferings and hardship being faced by the people daily in the last one month were excruciating, adding that there was need for the government to do something urgently to address the situation before it is late.

The party leader stated that the Tinubu-led government should not take the people for granted as a result of the impact of the subsidy removal which he said had resulted in massive increase in cost of food items, transportation and other essentials.

Jimoh, who was the PDP House of Assembly candidate for Okitipupa constituency 1 in the 2023 general election, spoke while playing host to party leaders and supporters in the council area in the mood of Sallah festivities in his country home of Igbotako, at the weekend.

Some of the leaders at the gathering were, Senator Boluwaji Kunlere, Hon Bamido Omogbehin, Mr. Adeolu Akinseye, State Assistant Treasurer; Okitipupa local government Organising Secretary, Joshua Lema; Okitipupa local government Assistant Secretary, Ojo Enisan; Chief Fayemiro, LG financial Secretary; Mr. Segun Awotula, LG Ex-officio and Folorunsho Ajayi.

According to him, “National and sub-national governments in Nigeria should reflect on the wellbeing of the poor people. The removal of fuel subsidy should be reciprocated by removal of greed and appetite for rent seeking by the political elite.
“The current administration should be sensitive enough to reason that there is a limit to human resistance to hunger, perceived oppression and inequality. Removal of the demonised petrol subsidy has far reaching consequences beyond political and economic exigencies; there are unexpected outcomes. I think whatever palliative in the offering is getting late.

“The poor masses cannot wait for market forces to determine their fate, crisis is looming, government should do something now! “
He commended the leaders and party loyalists for gracing the gathering put together to celebrate the season and also reflect on the outcomes of the 2023 general election.

Jimoh reiterated the need for the leaders and members of the PDP in the council area and the state to close ranks and work for the success of the party in future elections, especially the 2024 governorship poll in the state.
He expressed optimism that the party would bounce back in dislodging the All Progressives Congress towards offering the people quality and responsive governance with real dividends of democracy.