Presidential candidate of the ruling All Progressives Congress, APC, Asiwaju Bola Tinubu has assured of a private sector-driven economy if elected president.
Tinubu gave this assurance while presenting his comprehensive economic plan to stakeholders at a Presidential Dialogue organised by the Nigerian Economic Summit Group (NESG) in Lagos on Friday.
The APC candidate stressed the need to end the fuel subsidy regime, insisting that it has overstayed.
He said, “My core belief is that the private sector must be the prime driver of economic progress. However, the government establishes the framework within which the private sector must operate.
”If that framework is sound, the private sector will flourish. If the framework is frail or incomplete, then the private sector will struggle.”
He however noted that before economic recovery could be achieved, the nation must be secured, stating “First, to achieve the economy we seek, we must resolve the pressing security issues. No nation can flourish with terrorists and kidnappers in their midst.”
Tinubu also reiterated his resolve to urgently address the fiscal, monetary, and trade reforms to effectively increase domestic production immediately after he resumes office, thus serving to curb imported inflation, and to ensure better macro-economic stability by accelerating inclusive growth and job creation across Nigeria.
He said, “I do not hold to the mainstream view that all forms of inflation are best tackled by interest rate hikes and shrinking the economy. Supply-induced inflation does not lend itself to this harsh medicine, just as one does not cure a headache by plucking out one’s eye.
“I do not embrace the conventional wisdom that fiscal deficits by the national government are inherently bad. All governments, especially in this fiat currency era, run secular budget deficits. This is an inherent part of modern governance. The most powerful and wealthiest governments run deficits, as do the poorest nations.
“A budget deficit is not necessarily bad. Look at the Japanese example with high government borrowing and low inflation. The real issue is whether deficit spending is productive or not. Unproductive deficit spending is a compound negative. Especially if backed by excessive borrowing of foreign currency. This is not classroom economics but it is the lesson of the real economic history of nations.
“It is based on this idea that I believe we must remove the PMS subsidy immediately. It has outlived its shelf life as a public good. We will neither subsidize neighbouring countries’ fuel consumption nor allow a select few to reap windfall profits and hoard products.
“And the subsidy money will not be ‘saved’ because that means elimination from the economy. Instead, we will redirect the funds into public infrastructure, transportation, affordable housing, education, and health, and strengthen the social safety net for the poorest of the poor, thus averting increased security challenges.
“Fiscal policy will be the main driver. Monetary policy is weaker and a less effective instrument. Bad monetary policy is, of course, destructive. But even good monetary policy cannot carry the load the fiscal arm can. Thus, we must steadily remove ourselves from the fiction of tying our budgets to dollar-denominated oil revenues.
“This is effectively pegging our budget to a dollar standard. It is as outdated as the fuel subsidy itself. It is also restrictive and ties the economy to slow growth.”
On what he would do within his first 100 days if elected, Tinubu said he would hit the ground running by selecting a team of technocrats that will help him run the country as he did when he was Governor.
The APC candidate was accompanied to the NESG session by Governors Atiku Bagudu (Kebbi); Nasir el-Rufai (Kaduna); Babajide Sanwo-Olu (Lagos) and Dave Umahi (Ebonyi) as well as former Governors Adams Oshiomhole, Kayode Fayemi (Ekiti) and Babatunde Raji Fashola who is also Minister of Works among others.
Speaking on the rationale of the Presidential Dialogue, the Chairman of the summit group, Niyi Yusuf, said the dialogue was to give effect to common and shared ideas on the economy between the group and critical stakeholders.
