Thomas Sankara, the revolutionary Burkinabe leader said “Leaders must dare to invent the future“. underscoring the need to be bold and make decisions that ultimately should be in the interest of the people even if in the short run it brings some uneasiness. The height that great men reach and keep is never by a sudden flight but while others sleep, they toil far into the night.
As Nigeria navigates its current economic landscape, and the administration of President Bola Tinubu undertaking significant reforms including the removal of fuel subsidies, unification of dollar rates, and improvements in fiscal federalism, these reforms are undoubtedly causing immediate pains, they are however expected to yield long-term benefits and put the nation on a path to economic growth. It is a nation of 230 million people with abysmal earnings. A nation with a huge infrastructure deficit and huge ‘people bill’ to pay, something radical and different must be done albeit transparently and efficiently. Wishes alone just won’t cut it.
The removal of fuel subsidies, in particular, was a crucial step towards stemming the wastage and smuggling of cheap subsidized fuel, which was estimated to be costing Nigeria around $10 billion annually. This waste and corrupted program had to go. The unification of dollar rates is designed to avoid subsiding the dollars and defending the naira by close to $20 billion yearly which was largely then used to fund consumption. This age-long practice dug us deeper into a hole and needed to stop. In April 2023, AACS wrote: .(bit.ly/3BADSIA , bit.ly/4gPLSUO)
The focus on improving fiscal federalism has also been contentious. The government is introducing tax bills aimed at encouraging states to promote production within their borders, thereby generating more revenue and stimulating economic growth. The States are also being persuaded to let the local governments breathe as genuine improvements for the greater number of people lie in that space. In July 2024, AACS wrote : (bit.ly/3BOgzec)
In the words of Lee Kuan Yew, the former Prime Minister of Singapore, “A nation is great not by its size alone. It is the will, the cohesion, the stamina, the discipline of its people, and the quality of their leaders which ensure it an honourable place in history”.
Ultimately, the success of President Tinubu’s economic reforms will depend on the administration’s ability to manage the transition period effectively, provide adequate support to vulnerable populations, and maintain a steadfast commitment to its vision of a prosperous and resilient Nigeria, while improving the OPTICS of its actions. Tough times? Yes, but if we stay the course, we may eventually be on the way to achieving our potential
Falil Ayo Abina
www.aacs.ng
LinkedIn: AACS
X (Twitter): @AACS__NG
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