2 weeks Ago By Sunday Ojeme
The National President, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, Esq., has commended the current administration’s reforms on foreign exchange. Oye, in his presentation at the Editors’ Conference, taking place in Bayelsa State, listed the positive effects of President Bola Ahmed Tinubu administration’s reforms on the economy.
He stated, “By unifying foreign exchange rates and enhancing transparency, Tinubu’s administration has attracted significant foreign direct investments (FDI). “Investors responded positively, leading to a reported 114 per cent increase in FDIs from 2023 to 2024, thereby bolstering Nigeria’s economic stability.” Oye shared insights on the multifaceted struggles of the nation’s economy, focusing on issues of resource mismanagement, the vital role of the media, and the path forward for a sustainable and prosperous Nigeria.
According to him, “President Bola Ahmed Tinubu’s administration has taken audacious steps and reforms to build a more sustainable and transparent economy, including the removal of the petrol subsidy, the payment of $6 billion in outstanding trade debts (leaving a balance of $2.4 billion unpaid), the increase in minimum wage, the implementation of a unified exchange rate, and the realignment of the central bank’s focus on price stability.” He said these represented commendable steps toward reorienting the economic landscape, and thah there was the need to critically assess whether these reforms are being effectively harnessed for the benefit of all Nigerians.
On oil production, he said reforms in the oil and gas sector had revived production, with Nigeria’s oil output rising to 1.61 million barrels per day by mid-2024, adding that this increase, coupled with improved regulatory clarity, had doubled oil revenues, enhancing Nigeria’s fiscal strength. He also pointed out that the government had effectively doubled its revenue through anti-corruption measures, increased automation, and reduced leakages.
“Consequently, the debtservice-to-revenue ratio fell from 97 per cent to around 68 per cent, indicating better fiscal health,” he added. Speaking on the president’s support for youth and SMEs, he said initiatives like the Student Loan Scheme, SkillUp Artisans Programme, and nano-business loans had been launched to empower youth and small businesses. According to him, “additionally, the administration established MSME hubs across Nigeria, creating thousands of jobs and promoting entrepreneurship in partnership with agencies like CAC, NAFDAC, SON, FIRS, SMEDAN, and CUSTOMS.
” On housing initiatives, he said the Federal Government had launched an online portal designed to streamline the process of purchasing homes under the Renewed Hope Cities and Estates Scheme, stressing that “this initiative, in partnership with Continental Civil and General Construction Company (CCGCC) and Family Homes Funds Limited (FHFL), aims to deliver 100,000 homes, particularly for low- to middle-income families across Nigeria.” He also said programmes to increase cultivated land, dis – tribute fertilisers, and import mechanised farming equipment had been initiated to strengthen Nigeria’s food security, making food more accessible and affordable in the long term, adding that the recent zero duty on identified food products was commendable. On minimum wage increase, he said President Tinubu raised the national minimum wage to N70,000, helping workers cope with the rising costs of living.
“While this adjustment may be partially inflationary, it provides immediate support for low-income households, thereby enhancing their purchasing power,” he said. He further identified key problems of the current administration and systemic issues that hinder the nation’s progress to include: “Poor Management of the Exchange Rate: In May 2023, Nigeria’s exchange rate against the USD averaged approximately 460.70 NGN/USD.
As of November 7, 2024, this has spiraled to around 1,750 NGN/ USD..
