Economy at the Start of Tinubu’s Administration
Stephen Angbulu (SA): What type of economy did the President meet when he assumed office on May 29, 2023?
Bayo Onanuga (BO): President Tinubu inherited an economy in severe distress. The 2023 budget allocated 97% of revenue to debt servicing, leaving minimal funds for capital projects. The previous government was borrowing money for recurrent expenditures, and Nigeria was heavily in debt, including close to N4 trillion owed to the NNPC for fuel subsidies. Multiple exchange rates facilitated corruption, as some individuals were profiting from the difference between official and parallel market rates.
Immediate Measures Taken
SA: Nigerians were shocked that he announced the removal of the fuel subsidy immediately upon taking office. Why did he take such a swift decision?
BO: The removal of the fuel subsidy was crucial to stop the economic hemorrhaging. The Buhari administration had already set the stage for subsidy removal by the end of June. Prolonging this would have exacerbated fuel scarcity and further crippled the economy. Tinubu’s immediate action was necessary to stabilize the situation.
Cabinet Composition and Criticism
SA: Some Nigerians believe that some ministers, especially former governors with poor performance records, shouldn’t be in the cabinet. What is your response?
BO: President Tinubu is a politician who needed to balance competence with political realities. Some appointments were compensatory, recognizing allies who helped him win the election. However, the selection also included talented individuals who could add value. Allegations against some ministers are just that—allegations, not convictions. Everyone is innocent until proven guilty.
Performance in the First Year
SA: How would you rate the President’s performance in the first year?
BO: The first year has been challenging but necessary. The President took bold measures from day one to stop the country from sliding into economic chaos. These measures, though painful, were necessary to lay a foundation for future growth. Despite the hardships, the economy has started attracting significant foreign investments.
Addressing Inflation and Unemployment
SA: What about the rising inflation, ongoing killings in some states, and high unemployment rates?
BO: Inflation is driven by various factors, including the devaluation of the naira, increased costs of imports, and profiteering by unscrupulous individuals. The unemployment rate, according to the recalibrated metrics of the National Bureau of Statistics, is below 5%, but underemployment remains a challenge. The government is working on multiple fronts to address these issues.
Revenue and Minimum Wage
SA: Why are Nigerians not feeling the impact of the money saved from the fuel subsidy removal?
BO: The federal and state governments are now receiving more money due to the subsidy removal. This increased revenue is being used to finance projects and palliatives. However, it is crucial to hold state and local governments accountable for their spending.
Outlook for the Future
SA: What can Nigerians expect in the next year?
BO: Nigerians can expect significant improvements. The President has been laying the foundation for growth across various sectors. Initiatives in power, healthcare, housing, and transportation are underway. For instance, new cancer treatment centers and CNG buses will soon be launched. These efforts will start to yield visible benefits.
Interaction with Ministers and Accountability
SA: Does the President interact with his ministers regularly, and how does he ensure they are accountable?
BO: Yes, the President interacts with his ministers and keeps tabs on their performance. Ministers present their projects at the Federal Executive Council meetings, and there is an app for Nigerians to monitor their ministers’ activities. The President has made it clear that non-performing ministers will be asked to leave.
Conclusion
SA: Any final words on the cabinet reshuffle and overall governance?
BO: The President hasn’t indicated a cabinet reshuffle yet. The ministers have not even spent a year in office. The focus is on accountability and performance. President Tinubu is committed to ensuring that his administration delivers on its promises, and he will not hesitate to make changes if necessary.
This structured summary captures the key points from Bayo Onanuga’s interview, providing insights into President Bola Tinubu’s first year in office and his plans for the future.