OPINION BY OPEOLUWA DAPO THOMAS: Economic pain is coming but it should be worth it | TheCable
With fuel subsidies out, a potential unification of the FX market, and house-clearing of the country’s Central Bank – the Financial Times reported ‘it’s been a long time since we had positive reform momentum in Nigeria, and we’re seeing it now”.
Back home, although domestic investors share the same sentiments as their foreign counterparts, the citizens struggle to understand why these decisions were taken but are hopeful.Understandably so, their 50-year-old subsidy social contract has been yanked off like plaster – painfully. The outcome of this has led to low consumption of PMS as people have reduced traveling times.
Some have argued against these reforms. Some say “the government should have phased the removal of subsidy,” adding that the government should have fixed public transportation first and provided electricity”.
The truth is government has one job in life. Create an enabling business environment and provide support for the economy. If the economy works and it’s functional, businesses thrive and expand and people get employed. It’s organic. Conditional cash transfers and subsidies can temporarily come during times of shocks. But the cold truth is having subsidies on fuel, FX, education, electricity, diesel, healthcare has to come to an end. We cannot measure the impact.
Local governments can key into the FG’s plan. Provide jobs at grassroots levels. I am a big protagonist of the government pursuing governance the way they pursue election campaigning. Door to Door. That high-level method from Aso Rock disconnects the people.In the north, due to their comparative advantage, they can focus on agriculture – that’s how China took 800 million away from poverty. Not petrol at N189.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wigwe, economic diplomacy and Nigeria-France relations | TheCableAt a ceremony on Wednesday, May 10, 2023, in Paris, France, Dr. Herbert Wigwe, Group CEO of Access Corporation and Pan-African investor, took over from pioneer President, Abdul Samad Rabiu,
Read more »
DMO: Nigeria’s debt increased by N3.6trn in three months — hits N49.85trn | TheCableThe Debt Management Office (DMO) says Nigeria’s total public debt — federal and state governments — hit N49.85 trillion at the end of the first quarter (Q1) of 2023. The
Read more »
NAFDAC seals off pharmaceutical company producing 'unregistered cough syrup' in Rivers | TheCable.NafdacAgency seals off company producing ‘unregistered cough syrup’ in Rivers | TheCable
Read more »
Public disclosure: SEC denies allegations not publishing financial records for 9 years | TheCableThe Securities and Exchange Commission (SEC) has debunked claims that it has not published its annual reports and accounts for years.
Read more »
Newspaper Headlines: CBN asks banks to monitor accounts of political appointees | TheCableReports on the implications of petrol subsidy removal dominated the cover pages of Nigerian newspapers.
Read more »
Putin calls Wagner rebellion high treason, says it's a 'stab in the back' | TheCableRussian President Vladimir Putin has addressed threats of a military confrontation from Wagner Group, a militia in the country.
Read more »