Tinubu at WEF, Says Subsidy Removal, Forex Reform Saved Nigeria from Bankruptcy

*   Meets Microsoft founder, Bill Gates, Chairman of A.P Moller-Maersk, Maersk Uggla, CEO of Samsung, Hong Namkoong, others

* Secures $600m Danish investment to expand Nigeria’s existing seaports 

Deji Elumoye in Abuja

President Bola Tinubu, yesterday, said last year’s removal of fuel subsidy and current efforts by his administration to manage Nigeria’s foreign exchange market were necessary steps that prevented the country from going into bankruptcy.

Tinubu, who spoke at the opening of a two-day Special World Economic Forum in Riyadh, Saudi Arabia, also met with key global business leaders, on the sidelines of the event.

The business leaders included Microsoft founder and philanthropist, Mr. Bill Gates; Chairman of Danish shipping and logistics company, A.P Moller-Maersk, Maersk Uggla; President and Chief Executive Officer of Samsung, Hong Namkoong; as well as Chairman of Samsung Investment Global, Jungwook Kim.

Justifying the removal of fuel subsidy in Nigeria, Tinubu said it was a necessary action to prevent the country from going bankrupt and to reset the economy towards growth. 

He acknowledged that the subsidy removal was difficult and had drawbacks, but argued that it was in the best interest of the country.

The president also revealed that his administration implemented parallel arrangements to cushion the effect on the vulnerable population. 

He stated, “At the time, it ought to be taken decisively, that was necessary for the country. Yes, there have been drawbacks. Yes, there was the expectation that the difficulty would be felt by a greater number of people, but, of course, I believed it was their interest that was the focus of government. 

“It is easier to manage and explain the difficulties, but along the line, there was a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country.

“We shared the pain across the board. We cannot but include those who are very vulnerable. Luckily, we have a very vibrant youthful population interested in discoveries by themselves and highly ready for technology, good education; and committed to growth.”

On forex, Tinubu said, “The currency management was necessary, equally to remove the artificial element of value in our currency. Hence, our local currency finds its level, competes with the rest of the world’s currencies, and removes arbitrage, corruption and opaqueness. That, we did. 

“At the same time, that is a two-engine problem and a very turbulent situation for the government. But we are able to manage that turbulence because we prepared for inclusivity in governance and rapid communication with the public, to (really) see what is necessary and what you must do.”

The president called on the global community to pay attention to the root causes of poverty and instability in Africa’s Sahel region. He emphasised the need for economic collaborations and inclusiveness to achieve stability and growth.

Tinubu appealed to bigger economies of the world to actively participate in the promotion and prosperity of the region to achieve peace, stability, and economic growth. He further canvassed global collaboration and inclusiveness to drive capital formation and economic opportunities in Africa, particularly in the Sahel region. 

He also told participants at the WEF how, as Chairman of the ECOWAS Authority of Heads of State and Government, he had used Nigeria’s influence to discourage unconstitutional changes of government and ease sanctions.

The president stressed, “The fear of lack of capital in Africa” and “stigmatisation” must be addressed through inclusive programmes driving economic opportunity. 

He charged the global community to “look at the fundamentals of the problem” and “go to the root” of the issues facing the Sahel region and ECOWAS countries.

According to Tinubu, “The rest of the world needs to look at the fundamentals of the problem; not just ordinary geopolitically but it has to go to the root. Has the world paid attention to the poverty level of Sahel, and the rest of ECOWAS? 

“Have they helped the infusion of capital and paid adequate attention to the exploitation and opportunities availed by the mineral resources available?” 

He emphasised the importance of economic collaboration, saying, “The capital formation that is necessary to drive the economy, like agriculture, food security, innovation, and technological advancement, must be an inclusive programme of the entire world. No one should be left behind.”

Tinubu also emphasised the need for stability and economic prosperity in the region. He said, “We need to trade with one another, not fight each other. It is very, very necessary and compulsory for us to engender growth, stability, and economic prosperity for our people.

“The overall goal of the forum is to facilitate constructive dialogue, identify concrete solutions, and promote collaborative action to address the critical issues facing the global economy, such as geo-political tensions, inflation, supply chain disruptions, and the impact of climate change.”

Tinubu to Gates: Technology is Enemy of Corruption

President Bola Tinubu said his administration was investing in technology tailored towards ensuring transparency and accountability in government and accelerating public sector performance and service delivery to the Nigerian people.

Speaking during a meeting with Microsoft founder and philanthropist, Mr. Bill Gates, on the sidelines of the World Economic Forum Special Meeting in Riyadh, Saudi Arabia, Tinubu said technology was a potent weapon against corruption and financial impropriety in public service.

Stressing his commitment to delivering reliable technology that would support a national consumer credit system and many other critical new government interventions, Tinubu said resistance was often expected when efforts were made to strengthen systems and forestall malfeasance.

He stated, “Technology is the enemy of fraud, corruption, and irregularity. We have been working hard on improving technology. 

“There is always the initial resistance. Corruption, self-interest, and fraudulent activity will always be an enemy, but when you bend that curve, you will receive the benefit. The nation will receive the benefit.”

Recalling how he deployed technology to enhance the revenue base of Lagos State as governor, the president said he ensured the collection and utilisation of essential data, creating an efficient tax system for the state.

According to him, “When I was governor of Lagos State, I faced challenges. I started with N600 million and ended up with over N8 billion. 

“And right now, they are targeting a trillion naira with the use of technology in the state. There is no other shortcut. We must invest in technology. We must focus, be diligent, and work hard.”

Gates, in his remarks, informed the president of a one-identity technological platform that could integrate variegated data. He emphasised the centrality of data harmonisation to planning, security, and tax efficiency.

Gates stated, “We are working with Mr. Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, on digitisation. Before you came into office, there were a few things attempted in identity management. But they have been very scattered. There have been multiple identification systems.

“Now, there is a plan to take that technology called MOSIP and use it for this identification platform so that people can get digital benefits. We are providing support for that, and we can provide more support.

“With MOSIP ID, there is potential application in all government payment programmes. It helps with payment efficiency and bank accounts, and eventually, when everyone is using that, it makes tax collection easier. 

“That benefit will take a few years. However, there will be more bank accounts, more financial inclusion, and effective government payment programmes.”

The former Chief Executive Officer of Microsoft said Nigeria had the capacity to manage this system and related-technological systems, as the country brims with talented youths.”

The president explained, “The last time I went to the Microsoft office in Lagos, I saw the amazing work that they were doing and how they were growing their operations. So, you have a lot of Nigerian talents to manage these systems.”

The businessman also spoke about some high-yield seeds and a variety of crops with the potential for improved productivity and nutrition in all regions of the country.

He said countries like the United States and Brazil had been using these seeds and they had been tested and certified as safe. 

Gates stated, “There is no safety issue with these seeds. Supporting the Minister of Agriculture’s effort in this regard is something that we feel is important and worth supporting.”

Responding to Gates, Tinubu said, “We will look at this and work on it further. I am proud of Nigeria’s youths. They are very excited and creative with technology. They encourage us as we continue to press our reform efforts forward for their future prosperity. This is Nigeria’s time to become what it ought to be.”