Fuel Subsidy, exchange rate unification: 10 takeaways from Tinubu’s inaugural speech
As President Bola Tinubu took the oath of office as Nigeria’s 16th president on Monday, May 29, 2023, security, economy and job creation were central to his inaugural address.
With soaring inflation, a rising unemployment rate, insecurity, and debt, which he has inherited from the past administration, the former governor of Lagos State, promised to rid Nigeria of terrorism, echoing a similar promise made by Buhari, whom he helped bring to power in 2015.
As Tinubu assumes office and is expected to resume duties on Tuesday, May 30, 2023, here are 10 things he said in his inaugural speech:
End of Fuel Subsidy:
After several decades of fuel subsidy, President Tinubu bid farewell to the era of Nigeria subsidizing petrol imports. He stated that the 2023 budget made no provision for fuel subsidy, and insisted that the payment would no longer be justified.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime, which has increasingly favored the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of dwindling resources. Instead, we shall redirect the funds into better investments in public infrastructure, education, healthcare, and jobs that will materially improve the lives of millions,” he declared.
In January 2012, when former President Goodluck Jonathan announced the removal of fuel subsidy, Tinubu was one of the well-known critics who opposed it and after series of labour actions, the decision was reversed.
Insecurity:
Similar to his party’s promise in 2015, Tinubu vowed to end insecurity, which has resulted in the deaths of over 60,000 people in the last eight years. He assured Nigerians that security would be the top priority of his administration and pledged to reform the security doctrine and architecture, while investing more in security personnel, training, and equipment.
The Economy:
The new administration aims to target a higher Gross Domestic Product (GDP) and significantly reduce unemployment through electricity, budgetary, and industrial policies. Tinubu assured investors, both local and foreign, that the government would review their complaints about multiple taxation and anti-investment hindrances, ensuring the repatriation of investors’ hard-earned dividends and profit.
One Million Digital Jobs:
Tinubu’s target is to reduce the number of unemployed Nigerians by creating one million jobs in the digital economy. While he did not provide a specific timeframe for achieving this goal, he expressed a hope to partner with the National Assembly to pass digital-focused laws that would stimulate job creation.
Food Sustainability Through Agriculture:
With over 40% of Nigeria’s land remaining uncultivated, agriculture holds significant potential for diversification. Tinubu highlighted the importance of securing nationwide programs for storage and other facilities to reduce spoilage and waste. He also emphasised the establishment of agricultural hubs to increase production and engage in value-added processing, aiming to make food more abundant and affordable.
Building on Buhari’s Infrastructure:
The new government aims to continue the infrastructure development efforts initiated by Buhari’s administration. Tinubu acknowledged the notable accomplishments of the past administration, including the construction of railways, roads, seaports, airports, and housing estates.
He declared, “We shall continue the efforts of the Buhari administration on infrastructure. Progress toward national networks of roads, rail, and ports shall receive priority attention.”
A Unified Exchange Rate:
The difference in exchange rates between the official price and the parallel market was notable during the last administration. As of April 2023, while the official market rate for $1 was ₦461 according to the Central Bank of Nigeria, the dollar traded as high as $1 to ₦750 on the black market. Many experts say that this is detrimental to the economy and deters foreign investors from the country.
“Monetary policy needs a thorough housecleaning. The Central Bank must work towards a unified exchange rate. This will redirect funds away from arbitrage and towards meaningful investment in plant, equipment, and jobs that power the real economy.”
Tinubu, who had earlier criticised the apex bank’s decision on the redesign of the naira policy, reiterated his concerns in his inaugural speech.
“Whatever merits it had in concept, the currency swap was too harshly applied by the CBN, given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender.”
Foreign Policy:
Tinubu aims to make Nigeria assume it’s acclaimed role as “giant of Africa” with his foreign policies.
As many African countries are torn by war or political instability, Tinubu aims to mediate and bring peace to Africa while seeking to unify the country.
“As such, my primary foreign policy objective must be the peace and stability of the West African subregion and the African continent. We shall work with ECOWAS, the AU, and willing partners in the international community to end existing conflicts and resolve new ones. As we contain threats to peace, we shall also retool our foreign policy to more actively lead the regional and continental quest for collective prosperity.”
Upholding the rule of law:
The past administration was heavily criticised for disregarding court rulings and failing to uphold the rule of law. According to Socio-Economic Rights and Accountability Project (SERAP), a human rights watchdog, Buhari ignored rulings from Nigerian judges on at least 40 occasions.
But Tinubu, from his speech, appears to be resolved to take a different path.
“Nigeria will be impartially governed according to the constitution and the rule of law,” he assured.
Cabinet of youth and women:
While it appears that Nigerian youths heavily supported Peter Obi, the Presidential candidate of the Labour Party during the elections, Tinubu aims to form an inclusive government that includes women and youths.
