Tinubu Admits Reforms Weakening Nigerians’ Purchasing Power

By Modupe Gbadeyanka

President Bola Tinubu on Wednesday confessed to the chief executive of the International Monetary Fund (IMF), Ms Kristalina Georgieva, that the reforms his administration has implemented have weakened the purchasing power of Nigeria.

Immediately Mr Tinubu assumed office on May 29, 2023, he announced an end to the petrol subsidy and a month later, he devalued the Naira.

These two policies have affected the country’s economy, with some businesses, including multinationals, closing shops.

But the government has consistently assured that things would get better, arguing that the initial pains were necessary to enjoy the gains of its reforms.

Speaking with Ms Georgieva at the G20 Summit in Brazil, Mr Tinubu sought the support of the organisation to bring succour to Nigerians.

“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,” the President told the IMF chief.

He also said, “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.”

President Tinubu stressed that substantial resources must be invested to stimulate the much-needed infrastructural development in the country. The President further noted that  Nigeria is working on tax reforms to stimulate the economy further.

“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,” he noted.

In her remarks, Ms Georgieva who expressed a desire to visit Nigeria, commended the Tinubu administration’s economic reforms and their positive indicators, assuring him of further support in diversifying the Nigerian economy.

She specifically lauded the social investment programmes as a way of cushioning the effects on the most vulnerable and promised the assistance of the body in this regard.