President Bola Tinubu’s economic policies have made it difficult for businesses big and small to thrive, former Vice President Atiku Abubakar has declared as the nation prepares to celebrate one year of President Tinubu’s coming to power.
Atiku said in a statement Tuesday that private sector manufacturing and services have been burdened by the policies embarked upon by President Tinubu.
“The manufacturing sector, which holds the key to higher incomes, jobs, and economic growth, has been bogged down by rising input prices, higher energy and borrowing costs, and exchange rate complexities,” Atiku said in the statement made available to the media.
He added that President Tinubu should pause and reflect on his handling of the nation’s economy and start with genine reforms.
“First, pause and reflect. It is important that the government understands what reforms must be undertaken and in what sequence. A framework is needed with clearly stated reform objectives and strategies.
“Second, undertake a comprehensive review of the 2024 budget within the new reform framework. The 2024 FGN Budget, the exact size of which remains a mystery, is not designed to address the structural defects of the Nigerian economy or the cost-of-living crisis. It will neither create prosperity nor promote opportunities for our young people to lead a productive life.
“Third, undertake a comprehensive review of the Social Investment Programme (SIP) to mitigate some of the impacts of these policies on the most vulnerable households. The SIP must go beyond Conditional Cash Transfers to include programmes that prioritise support to MSEs across all economic sectors, as they offer the greatest opportunities for achieving inclusive growth.
“In addition, a holistic programme to support medium and large-scale enterprises to navigate the stormy seas in the aftermath of the withdrawal of subsidy on PMS is also needed.
“We are aware of the behind-the-scenes attempts to increase the VAT rate from 7.5% to 10%, reintroduce excise on telecommunication, and increase excise rates on a range of goods.
“Fifth, provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact of this on the Federation Accounts. It is curious that since April 2024, fuel queues have mounted at many filling stations across Nigeria, and the infamous ‘black market’ has sprouted in several states. How much PMS is being imported and distributed, and at what cost? What is the implicit subsidy?
“Tackle security headlong. President Tinubu, as a matter of priority, needs to rejig the nation’s security architecture as what is currently in place is not serving the needs of the people. The state of pervasive insecurity continues to adversely impact agricultural production and the value it brings to the economy, especially in the Northern parts of the country.”
