My Economic Reforms Are Not Without Challenges, Says Tinubu

* Abbas: We’re ready to aid Tinubu’s economic reforms 

Adedayo Akinwale in Abuja 

President Bola Tinubu has admitted that the economic reforms and policies being introduced by his administration are not without challenges. 

He said his administration was implementing significant policy changes, which he said are long overdue to reform how the country is governed and position it for progress and shared prosperity for all citizens. 

Tinubu, who was represented by his Chief of Staff, Hon. Femi Gbajabiamila, disclosed this Tuesday in Abuja at a two-day retreat for members of the House of Representatives on Economic Transformation and Development with the theme, ‘Navigating Change: Legislative Strategies for Economic Transformation.’

His words: “As you know, my administration is implementing significant policy changes to reform how we govern and position our country for progress and shared prosperity for all citizens. 

“These reforms, while necessary and, in some cases, long overdue, are not without their challenges.  I am deeply grateful for your unwavering support and understanding during these times. 

“Your understanding and support have been invaluable, and I am confident that with our continued collaboration, we can overcome any challenges that lie ahead.

“The oil and gas industry has long been the lifeblood of our national economy. My administration is working tirelessly to change this and diversify our economy from overreliance on the production of fossil fuels.”

The president added that his administration was also determined to maximise revenue potential from this critical industry. 

Tinubu noted that for this reason, his government was pushing policies to attract investment in the oil and gas sector.

He recalled that he recently signed an executive order to unlock about $10 billion in fresh investments in the sector.

Tinubu said this would happen through Fiscal Incentives for Non-Associated Gas (NAG), Midstream and Deepwater Oil & Gas Developments.

He said just last week, the Federal Government of Nigeria signed the Consolidated Guidelines for implementing Fiscal Incentives for the Oil & Gas Sector. 

The president explained that the guidelines, which represented a cornerstone of the presidential directive, is aimed at enhancing the Nigerian oil and gas sector’s global competitiveness while stimulating economic growth.

He added: “Related to this are the reforms we are implementing to our tax regimes to limit the taxes collected without negatively affecting government revenues. 

“All of these have the same objective – to reduce government interference with the commercial imperatives of businesses in the country so that businesses based here can be competitive and focus on their core objectives of economic growth through innovation and trade.  

“We will need the support of the National Assembly to fully implement some of these reforms, as statutory changes will be required in some areas.”  

Disappointedly, the lawmakers whom the retreat was organised for appeared to be uninterested as the rowdiness and their loitering indicated that the retreat was another money wasting scheme.

For instance, while the programme was going on, the lawmakers were rowdy, forcing the master of ceremony to plead with them to maintain silence or talk in low voice with their colleagues while talking with the colleagues. 

Some of the lawmakers later left without coming back to the hall. 

On his part, the Speaker of the House,  Hon. Abbas Tajudeen, said the second leg of the retreat centred on the Petroleum Industry Act (PIA) represents a legislative milestone passed by the 9th Assembly. 

He pointed out that this Act was not just a piece of legislation but a transformative blueprint designed to overhaul the petroleum industry.

According to him,  “It is an opportunity to align our actions with our aspirations, ensuring that this vital sector operates efficiently, transparently and, most importantly, beneficially for every Nigerian.”

The Speaker was of the opinion that the National Assembly was vital in ensuring continuous review of the PIA to ensure its effectiveness in a rapidly evolving industry landscape. 

This, he said, involved meticulously monitoring the implementation of the Act, analysing its impacts and identifying areas where modifications may be necessary. 

Abass noted: “For this reason, we are actively engaging various stakeholders at this retreat, including government bodies, industry experts and community representatives.

“Today’s sessions are designed to gather diverse perspectives and insights, which will be essential for making informed amendments that address emerging challenges and ensure that the Act meets its intended objectives.

“This interactive process will not only help in fine-tuning the Act but also ensure that it remains aligned with the broader economic and environmental goals of Nigeria.” 

Abbas, however, lamented that Nigeria’s efficiency in collecting Value Added Tax (VAT) is the lowest among its African peers, indicating significant inefficiencies in its tax system.

He, therefore, expressed the readiness of the 10th House to aid the economic policies and programmes of the President Bola Ahmed Tinubu administration.

Abbas noted that the House made a deliberate decision to focus on tax reforms and modernisation, as well as a review of the implementation of the Petroleum Industry Reform Act (2021). 

“The overarching objective is to discuss and identify concrete legislative strategies for economic transformation,” he said.