President Muhammadu Buhari says that despite disruptions in the global economy and internal problems, the Nigerian economy remains resilient and maintains an upward trend.
This was stated by the President at the opening of the Presidential Committee for the National Economy on Friday in Abuja.
According to him, the Covid-19 pandemicthe war in Ukraine and the loss of significant amounts of oil are having a negative impact on the Nigerian economy.
He said: “Starting with COVID-19 and now the conflict in Ukraine, the last three years have been tumultuous for the global economy. Global interdependence has become clearer as we have had to grapple with volatility, uncertainty, complexity and ambiguity.
“During this time, the world has faced many challenges including: lockdowns as COVID-19 raged; Disruptions in supply chains around the world and sharp price fluctuations.
“Just as the world began to recover from the coronavirus, the conflict in the Black Sea region between Ukraine and Russia exacerbated already existing challenges and created additional problems for policymakers to respond to.
“Our economy continues to grow despite the negative impact of rising interest rates, a stronger US dollar and higher global inflation.”
However, Mr. Buhari noted that some of the issues could be addressed internally, making the appointment of experienced economists useful.
“However, it is important to note that some of the issues we need to address are specific to us.
“For example, the decline in our crude oil production. It is estimated that last month, August 2022, we produced less than 1 million barrels. The decline in production is mainly due to economic sabotage.
“With oil prices soaring in world markets, producing about half of our OPEC quota has deprived us of much-needed revenue and foreign exchange. The government is working tirelessly to reverse this situation,” Mr Buhari said.
However, he assured Nigerians that despite these hiccups, which require borrowing from financial sources, “the current government remains committed to the welfare of the citizens, particularly the implementation of the social investment programs.
“While citizens’ concerns about borrowing are well understood, our reliance on borrowing must also be appreciated in the context of the resources needed to meet the infrastructure, health and other socioeconomic needs of our citizens.
“It remains a key objective of this government to continue with its social protection programs.
“These programs support the most vulnerable of our citizens.”
The Nigerian leader stressed the need to improve resource mobilization and utilization in the country as more can be achieved in this direction.
The debates about resource mobilization and use have not gone unnoticed by his government either.
“In terms of resource mobilization, our performance as a nation remains a cause for concern.
“Tax revenue accounts for about 8 percent of our production. That compares very poorly to the countries we measure against, which score 15-25 percent.
“Without revenue, our ability to provide the most basic services is limited,” he added.
fuel subsidy
According to the President, while he understands the concerns raised by the huge spending on fuel subsidies, it is prudent to strike the right balance so as not to scare off investors.
He said: “In terms of spending, our aim remains to ensure that spending is efficient and result-oriented. In this context, the debate on fuel subsidies has been well noted.
“However, the right balance needs to be found to ensure we don’t leave room for inefficiencies and leaks when protecting our citizens.
“It is also important to ensure that our national investment environment is such that it can attract and retain local and international private investors.
“The sustainable handling of the challenge of political predictability and coherence is an important element.”
mandate
Regarding the mandate and composition of the committee, which he will chair with representatives of the state governors, the President said he was confident that it would produce the expected results for the benefit of the people.
“The Bureau of National Economy, which I am inaugurating today, aims to bring together all the policymakers responsible for the economy.
“In this way, we share a common understanding and approach to solving the problems I have identified and many more.
“This committee will provide our nation with an opportunity to be bolder, more proactive and more innovative to address ongoing challenges.
“The work I have tasked the assembled team with will allow us to respond more quickly and efficiently,” said the President.
The event featured presentations by Doyin Salami, Chief Economic Adviser to the President; Zainab Ahmed, Minister of Finance, Budget and National Planning, Niyi Adebayo, Minister of Industry, Trade and Investment and Godwin Emefiele, Governor, Central Bank of Nigeria.
Sokoto State Governor Aminu Tambuwal represented the Chairman of the Governors’ Forum.
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The Presidential Committee on Economy is chaired by Mr. Buhari and has as members Vice-President, Yemi Osinbajo; Kayode Fayemi, Chair of the Nigeria Governors Forum; Timipre Sylva, Minister of State for Petroleum, Mrs. Ahmed and Mr. Adebayo.
Other members include Boss Mustapha, Secretary of the Federation Government; Ibrahim Gambari, Presidential Chief of Staff; Mohammed Sagagi, Vice-Chairman of the President’s Economic Advisory Council; Mr Emefiele and Mr Salami, the Secretary of the Committee.
The committee will review the national economic situation and propose measures to ensure that the national economy improves and the government’s goals can be met.
The Committee is also regularly briefed on economic conditions in the country, identifying issues that require urgent intervention to improve macroeconomic and fiscal conditions, and reviewing the impact of existing and new policies on the Nigerian economy.
It also includes instructions on relevant institutions responsible for tax, monetary and other relevant policies.
Against the backdrop of recent developments in the global economy and their impact on Nigeria’s economic development, officials say this Presidential Committee is another clear demonstration of “the President’s unwavering commitment to ensure the Nigerian economy navigates successfully through these difficult times.”
It will be an “economic emergency room” that will work to keep Nigeria on the path to economic recovery and growth, global competitiveness, and inclusive development and sustainability.
(IN)
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