VenturesNow

In national broadcast, Nigeria’s Tinubu promises relief as cost of living crisis bites

Published

1 year ago

July 31, 2023

Nigeria’s President, Bola Tinubu, in a nationwide address on Monday, reiterated that his economic reforms were targeted at a lasting legacy for the country despite current hardship.

President Tinubu said it was in the interest of the country that the fuel subsidy be discontinued and other fiscal policies be implemented.

Tinubu said: “I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system was key to this fight. This fight is to define the fate and future of our nation. Much is in the balance.

“Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them.

“As we move to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary”.

The Nigerian president also stressed that he understood the plight of Nigerians amidst the growing cost of living and was committed to providing succour for the situation.

“Things seem anxious and uncertain. I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help, not hurt, the people and nation that I love.

“What I can offer in the immediate is to reduce the burden our current economic situation has imposed on all of us, most especially on businesses, the working class, and the most vulnerable among us”.

Nigerians depend on cheap petrol to run their largely informal small and medium-scale businesses. For many businesses, operating costs since subsidy removal on May 29 have hit the roof, while the cost of transportation has also been impacted.

There are concerns that while the federal government plans provision of palliatives to cover the private and informal sectors, they may not be sufficient to cushion the impact of the policies. Meanwhile, governments at sub-national levels have been announcing approaches to attempt to cushion the effects on their constituents.

Related Topics:Featured Fuel subsidy Nigeria President Bola Tinubu

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.