FG Promises to Tame Hyper Inflation As Subsidy Removal Slows Economy

Ndubuisi Francis in Abuja 

The Minister of Finance and Co-ordinating Minister of the Economy, Mr. Wale Edun, has assured Nigerians that the Federal Government is determined to tackle the problem of hyper inflation in the economy and make it a thing of the past.

Nigeria’s inflation rate, which has continued a six-month unabating spiral, spiked from 

22.79 per cent in June to 24.08 per cent in July, the highest since September of 2005.

Edun, who spoke in Abuja Thursday at a  two-day retreat of the Presidential Committee on Fiscal Policy and Tax Reforms, assured Nigerians that better days are ahead with the implementation of the Renewed Hope Agenda of President Bola Ahmed Tinubu.

According to a statement issued by the Director (Press and Public Relations), Ministry of Finance, Mr. Stephen Kilebi, Edun admitted that the removal of fuel subsidy had slowed down the economy, adding that: “It is the wish of Mr. President to create jobs, reduce poverty, control micro and macroeconomic policies to create stable environment to attract investors, stabilise the exchange rate and drive the economy to reduce poverty to the lowest level.”

The minister added that though the removal of fuel subsidy has slowed down the economy, there were interventions in place to cushion the pains of the reform and plug leakages on subsidy management. 

He promised that the era of the nation’s gross domestic product (GDP) per capita falling by 30 per cent over the past 10 years will be a thing of the past with Tinubu’s  Renewed Hope Agenda. 

He also assured Nigerians that the issue of hyper inflation in the nation’s economy would soon be a thing of the past.

Edun reminded the committee members of the president’s 30-day deadline to deliver something  tangible on their assignment, adding that the economy was not growing fast as expected.

He enjoined the committee to fast-track its assignment, adding that there was no time to waste.

The minister thanked members of the Presidential Committee on Fiscal Policy and Tax Reforms, noting that they were determined, committed and courageous to carry out their assignment which will be of benefit to Nigerians.

In his remarks, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr.Taiwo Oyedele, thanked the minister for his words of encouragement.

Oyedele disclosed that the terms of reference of the committee include fiscal governance, revenue administration and tax policy review. 

He highlighted the deliverables from the committee to include optimum taxes; harmonised  revenue collection functions; a revised national tax policy; national fiscal framework; preparation of bills for constitutional amendment; revenue optimisation; production of a model template for sub-nationals and establishment of the national tax amnesty scheme.