IMF, following its Post Financing Assessment (PFA), has called on the Federal Government led by President Bola Ahmed Tinubu to phase out completely all forms of subsidies including electricity subsidies.
Legal practitioner, political economist, and a former Minority Whip of the House of Representatives, Dr Samson R. Osagie has urged President Bola Tinubu to ignore the recommendation of the International Monetary Fund, IMF, on subsidies.
Hon. Osagie, in an open letter to the President, stated that a combination of micro and macroeconomic indicators has dangerously contributed to making life challenging for the citizens.
Highlighting these indices he said: “Nigeria’s inflation rate stands at a whopping 28.92 percent with food inflation hovering around 30 percent in the past one year. The exchange rate has ballooned to the detriment of the nation’s currency, the Naira to an all-time low of N1,470 to a $1.
“The Nigerian Economic Summit Group (NESG) has said that Nigeria’s Gross Domestic Product will grow at 3.50 percent in 2024. The group made the forecast in its 2024 macroeconomic outlook report, titled ‘Economic Transformation Roadmap: Medium Term Policy Priorities’, in January 2024.
“In 2024, Nigeria’s total debt stock will climb up by at least 22.15 percent (N19.47tn) to N107.38tn in 2024 if the borrowing plan is followed to the letter as envisaged by the 2024 Federal Budget.
“Interest rates have continued to hover beyond the current Central Bank rate of 18.75% to as much as 30% in deposit money banks with the results that new investments are exceedingly difficult to embark upon by investors.”
In response to the IMF’s recommendation, Osagie opposes the removal of subsidies, emphasizing the dire conditions faced by the Nigerian people. He also questions the historical impact of IMF-prescribed solutions and proposes a focus on local industry development to boost exports and economic growth.
David Oputah
Oputah David M is a Bloomberg-trained Journalist with a diversified experience in online journalism and newsroom management. He is a 2023 MTN Media Innovation fellow!
