Tinubu scraps fuel subsidy, to revisit CBN’s Naira redesign policy

Newly-inaugurated President, Bola Tinubu has announced scrapping the controversial petroleum products subsidy, in addition to revisiting the Naira redesign policy of the Central Bank of Nigeria (CBN), which he said was ‘too harshly applied given the number of unbanked Nigerians.’

President Tinubu in his inaugural speech at the Eagle Square, after being sworn-in as the 16^th Nigerian President, stated that the era of subsidy payment on fuel has come to an end, adding: ‘Fuel subsidy is gone.’

He further directed that the old and new Naira banknotes co-circulate as legal tender in the country, despite the Supreme Court ruling permitting such till August, this year.

“We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”

President Tinubu who assured that his administration would target a higher GDP growth and significantly reduce unemployment, also promised to offer budgetary reform that would stimulate the economy without engendering inflation.

“Second, industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.

“Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well.

“We shall ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home.

“Security shall be the top priority of our administration because neither prosperity nor justice can prevail amidst insecurity and violence.”

To tackle unemployment, Tinubu reiterated the salience of creating ‘meaningful opportunities for our youth,’ as he pledged to honour his campaign commitment of one million new jobs in the digital economy.

“Our government also shall work with the National Assembly to fashion an omnibus Jobs and Prosperity bill. This bill will give our administration the policy space to embark on labour-intensive infrastructural improvements, encourage light industry and provide improved social services for the poor, elderly and vulnerable.”

Tinubu who noted that the country’s monetary policy needs thorough housecleaning, charged the CBN to work towards a unified exchange rate, saying ‘this will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.’

He said his administration would treat both new and old naira notes as legal tender, saying despite its intended merits, the controversial currency swap policy of the CBN.

Tinubu, who said this in his inaugural speech in Abuja on Monday said that his administration would treat both the old and the new Naira notes as legal tender.

He said that the policy was harshly applied by CBN, given the number of unbanked Nigerians.

“Whatever merits it had in concept, the currency swap was too harshly applied by the CBN,” he said.

According to him, the country’s monetary policy needed thorough housecleaning and urged the CBN to work toward a unified exchange rate.

“This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.

“The interest rate needs to be reduced to increase investment and consumer purchasing in ways that sustain the economy,” he said.