Tinubu to IMF: Our Reforms Now Bearing Positive Results
· Says his govt will continue to prioritise welfare of the poor and vulnerable
· States Nigeria tinkering with tax reforms to further stimulate economy
· Georgieva lauds social investment programmes as a way of cushioning effects of reforms
· Says IMF injected $1trn into world economy in last two years
Deji Elumoye in Abuja
President Bola Tinubu has assured that his administration will continue to prioritise the welfare of the poor and most vulnerable, saying his government’s economic reforms have started to bear fruit.
Tinubu gave the assurance Wednesday night in Rio de Janeiro, Brazil, when Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, paid him a courtesy call. A release issued by Adviser on Information and Strategy to the President, Bayo Onanuga, said Tinubu acknowledged that his administration’s reforms had weakened the purchasing power of many Nigerians, during the meeting held on the side-lines of the G20 Leaders’ Summit.
But the president said his government will continue to provide social safety nets to cushion the unintended consequences.
Congratulating the IMF chief on her election for a second term, Tinubu appreciated her support in implementing the reforms, calling for more institutional backing for stability and sustainable growth.
“We have started seeing positive results from our reforms, and the Nigerian people now understand the need for them, but we have to reduce the hardship that has resulted from the implementation,” Tinubu stated.
He emphasised the critical need for educational access, saying, “We have too many children out of school, and we know that education is a way out of hunger and poverty. That is why we are designing ways and incentives to keep these children in school, and we need your support for these kids who want to stay in school.”
Tinubu stressed that substantial resources must be invested to achieve the much-needed infrastructural development in the country.
He stated that Nigeria was working on tax reforms to further stimulate the economy.
He said, “We are engaging stakeholders and sensitising Nigerians to expand the economy’s tax base for inclusive developmental growth. We are doing this without necessarily increasing the taxes on our people who have already given a lot. We will require your support on this.”
In her remarks, the IMF managing director, who expressed a desire to visit Nigeria, commended the Tinubu administration’s economic reforms and their positive indicators.
She assured the president of further support in diversifying the Nigerian economy.
Georgieva specifically lauded the social investment programmes as a way of cushioning the effects on the most vulnerable and promised the assistance of the fund in this regard.
Contrary to popular perception, Georgieva said IMF was focused on developing vulnerable societies and devoting substantial resources to emerging economies.
She expressed the fund’s readiness to offer technical support for the budgeting process in Nigeria, adding that it will assist the country to achieve the best possible results from loans.
Georgieva said the world had suffered some shocks from the covid 19 pandemic that caused damage to world economy, adding that over the last two years, IMF has injected about $1 trillion into the global economy.
While the developed countries managed the shocks better, the developing nations did not, she stated.
She said IMF was working with developing countries to build resilient institutions to better manage future global economic shocks.
According to her, it is the right of every country to benefit from the fund after a critical analysis of its priorities.
The IMF boss informed Tinubu that the organisation’s Executive Board had approved the third Chair for Sub-Sahara Africa (SSA), to enhance the African voice.
She congratulated Nigeria on hosting IMF’s African Caucus meeting in Abuja in August.
Georgieva also advocated deepening regional economic ties, saying IMF is ready to support this process.
