TheCable

President Muhammadu Buhari says the country’s economy will continue to maintain an upward trajectory in spite of the challenges caused by global events such as COVID-19 and the Russia-Ukraine war.

Buhari spoke at the inauguration of the presidential committee on the national economy on Friday, according to a statement by Femi Adesina, his media aide.

Buhari said even though the COVID-19 pandemic, the war in Ukraine and the loss of substantial volumes of oil have had negative impacts on the Nigerian economy, the country will remain resilient in ensuring growth.

He, however, said the country’s poor performance in resources mobilisation was a source of concern.

“Starting with COVID-19 and now the conflict in Ukraine, the past three years have been turbulent ones for the global economy. Global interdependence has become more apparent as we have had to deal with volatility, uncertainty, complexity, and ambiguity,” he said.

“In this period, challenges faced by the world have been many including:  lockdowns as COVID-19 raged, disruptions to supply chains around the world, and sharp fluctuations in prices.

“Just as the world was beginning to recover from the coronavirus, the conflict in the Black Sea region between Ukraine and Russia worsened the challenges already being faced and created additional problems to which policy makers are having to respond.

“Our economy continues to grow despite the adverse effects of rising interest rates, a stronger US dollar and higher inflation across the world.”

FG’S INCREASING BORROWING 

As the issue of the country’s debt profile continues to concern Nigerians, the president assured that despite borrowings from financial sources, the current administration remains committed to the welfare of the citizens, especially the implementation of the social investment programmes.

He said his administration’s resort to borrowing would be appreciated when viewed from a prism of resources needed to provide infrastructure.

“While citizens’ concern about borrowing is well understood, our resort to borrowing must also be appreciated in the context of the resources required to deliver on the infrastructure, health and other socio-economic needs of our citizens,” Buhari said.

“It remains a major goal of this administration to continue pursuing its social protection programmes. These programmes provide support to the most vulnerable of our citizens.”

POOR RESOURCE MOBILISATION

Buhari further said there was a need to upscale resource mobilisation and utilisation in the country as more could be achieved in this direction.

“On resource mobilisation, our performance as a nation continues to be a source of concern.

“Tax revenues are approximately 8 percent of our output. This compares very badly with those countries against which we measure ourselves that achieve 15 percent to 25 percent. In the absence of revenue, our ability to deliver the most basic services is limited.”

Buhari also said while he understands the concerns arising from the huge expenditure on fuel subsidy, it is expedient that a right balance be struck not to scare away investors.

“With respect to expenditure, our objective remains to ensure that spending is efficient and result oriented. In this regard, the debate around fuel subsidies is well noted. However, the right balance needs to be struck to ensure that as we protect our citizens, we do not leave room for inefficiencies and leakages,” he added.

“It is also important to ensure that our national investment environment is such that local and international private investors can be attracted and retained. Sustainably dealing with the challenge of policy predictability and coherence is an important element in this regard.”

COMMITTEE TO PROVIDE SOLUTIONS

Speaking on the inauguration, Buhari said he is convinced the committee would deliver as expected for the benefit of the populace

He said the presidential committee on the national economy, which aims to bring together all policy makers responsible for the economy.

”In this way, we share a common understanding and approach to resolving the issues I have identified and many more,” he said.

“This committee will provide our nation an opportunity to be bold, more proactive, and innovative in tackling persistent challenges. The work with which I have tasked the assembled team will enable us to respond more swiftly and efficiently.”

The committee which is to be chaired by Buhari, has Vice-President Yemi Osinbajo; Kayode Fayemi, chairman of the Nigeria governors forum; Zainab Ahmed, minister for finance, budge, and national planning; Niyi Adebayo, minister for industry, trade and investment; and Timipre Sylva, minister of state for petroleum as members.

Other members include: Boss Mustapha, secretary to the government of the federation; Ibrahim Gambari, chief of staff to the president; Godwin Emefiele, governor of the Central Bank of Nigeria; and Mohammed Sagagi, vice chairman of the presidential economic advisory council.

Also, Doyin Salami, the chief economic adviser to the president is a member and secretary of the committee.

According to the statement, the committee will review the national economic situation and propose measures to ensure our national economy improves and can meet the government’s objectives.