Fuel Subsidy Removal and Central Bank Shake-Up President Bola Ahmed Tinubu, in just 15 days of assuming office, has made significant moves that are reshaping Nigeria’s economy. He successfully eliminated the costly fuel subsidy, removed the controversial governor of the Central Bank of Nigeria, and expressed his commitment to unify the country’s varying exchange rates. These actions have garnered positive responses from foreign investors and signaled a shift towards market-oriented policies.
Imminent Unification of Exchange Rates ,Wale Edun an influential member of Tinubu’s advisory board, revealed that Nigeria would unify its exchange rates in the near future. Edun suggested that this unification could be achieved within a quarter, highlighting the administration’s determination to address investor demands and attract much-needed foreign investments. The prospect of unified exchange rates has already caused Nigeria’s dollar debt to surge, indicating growing confidence in the country’s economic direction.
GDP Growth and Improved Taxation ,Nigeria’s Gross Domestic Product (GDP) witnessed a substantial increase to N173.52 trillion in 2021, driven by improved taxation. Tax revenues reached N18.85 trillion, with non-oil taxes playing a significant role in this growth. The revised data on the tax-to-GDP ratio, reflecting better data sources and improved estimation methods, revealed a rise from 8.40% in 2020 to 10.86% in 2021. This upward trajectory in taxation demonstrates the government’s commitment to fostering economic stability and sustainable growth.
President Tinubu’s swift actions have set a new course for Nigeria’s economy. By eliminating fuel subsidies, shaking up the central bank, and pledging to unify exchange rates, his administration aims to attract foreign investments, drive economic growth, and establish a more market-oriented approach. These developments, coupled with the country’s improved taxation and rising GDP, signal a positive trajectory for Nigeria’s economic future.