We share in the president’s standpoint on this matter. No reform of the magnitude being undertaken can succeed without some forms of pain
By Moses Okorie
A group, Independent Media & Policy Initiative, IMPI, has pleaded with Nigerians to be patient with the current administration under President Bola Tinubu, saying there is no major reform without some forms of pains on the side of the citizens.
The chairman of the group, Niyi Akinsiju, made the appeal in his address during a press conference on their third quarter of the year 2024 held in Abuja on Tuesday revealing that they deemed it appropriate to engage the public space principally for the purpose of putting the larger socio-economic issues in context instead of considering a nationwide protest.
Akinsiju said, “We are well aware of Nigeria’s skyrocketing year-on-year inflation figure standing at 34.19% in June 2024. This figure is primarily driven by surging food prices, which culminated in higher food inflation at 40.87% in the month.
“The increase in inflation rate may have been aggravated by the depreciation of the Nigerian currency on the back of the harmonization of the foreign exchange windows and the removal of fuel subsidy by the federal government; the twin policies that now define the structural reformation of the economy.
“Without a doubt, the aggregate impact on the cost of goods and services truly reflects a disruption on the quality of life of the average Nigerian. We are, however, not unmindful of the President’s admonition at different times to the generality of Nigerians on the possible consequential impact of the reforms. We share in the president’s standpoint on this matter. No reform of the magnitude being undertaken can succeed without some forms of pain.”
He said, the government accomplished this feat under a 14-month period, and believed that the impressive reduction in national debt profile now reflects in the hitherto worrisome debt service-to-revenue ratio, which has now dropped from 97% in the first half of 2023 to 68% in 2024.
The group added that this is in addition to the N7.3trillion Ways and Means obligation paid back to the Central Bank of Nigeria by the federal government within a year of the Tinubu administration, and that the budget deficit has fallen from 6.1% to 4.4%, a clear indication of strategic fiscal management.
“The healthy fiscal environment is apparently helped by the increase in the quantum of crude oil production, from 1.28 million barrels per day in April 2024 to 1.61 million barrels per day as of July 23,2024; the first time in 42 months.
“Connected to this, is the vast improvement in the balance of the nation’s foreign reserve which increased from $32.29 billion in April 2024 to $37.05 billion in July 18, 2024.
“Remarkably, between June 30 and July 18 the external reserves rose from $34.70 billion to $37.05 billion — indicating an increase of $2.35 billion in about 18 days. This foreign reserve balance covers 11 months imports, another indication of a stabilizing economy.
“In other sectors of the economy, beginning with power, we are encouraged by the quantum leap in power generation and transmission. The sector recorded a number of interventions through policies and actions by the federal government. It was a remarkable feat when 700 megawatts of electricity were added to the national grid with the commissioning of the Zungeru Hydro- Electric Power Station in Niger State.
“In addition, the power sector also recorded the commissioning of two substations in Kebbi and Ajah in Lagos to consolidate the nation’s electricity distribution capacity. This has led to a considerable improvement in power supply across the country.
“We also commend the President for the payment of the historical N3.3 trillion Naira debt owed the power sector, which for years, crippled the nation’s capacity to generate, transmit and distribute the required electricity, and unfortunately subjected the populace to the agony of endless power outages.”
The group said the lifeline handed to Dangote and other refineries that will see them getting crude oil from NNPCL in naira, underlines the president’s pro-business mindset at a time many people were worried about the damage the rift in the petroleum industry could inflict on Nigeria’s quest for improved Foreign Direct Investments, FDI.