News

My Reforms Have Weakened Purchasing Power – Tinubu Confesses

Published

10 hours ago

Nov 21, 2024.

President Bola Tinubu has acknowledged that his administration’s economic reforms have weakened Nigerians’ purchasing power, but he assured that efforts would be made to prioritize social investment programs to assist the most vulnerable members of society.

This statement was made by President Tinubu during a courtesy call from the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, on the sidelines of the G20 Leaders’ Summit in Rio de Janeiro, Brazil, on Wednesday night.

EDITOR’S PICKS

EKO HOT BLOG reports that in a statement issued by Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, it was revealed that the President recognized the economic challenges posed by the reforms but reiterated that his administration would continue to provide social safety nets to mitigate the unintended effects.

While congratulating Kristalina Georgieva on her re-election for a second term, President Tinubu expressed gratitude for the IMF’s support in implementing the reforms, calling for further institutional backing to ensure stability and long-term sustainable growth.

President Tinubu also emphasized the importance of improving access to education, noting that too many children remain out of school. He said, “Education is the way out of hunger and poverty,” and expressed the government’s commitment to creating ways and incentives to keep children in school, seeking support for these initiatives.

In addition, the President stressed the urgent need for substantial investments in infrastructure to drive development and stimulate the economy. He also highlighted the ongoing tax reforms in the country, stating that Nigeria is engaging stakeholders to expand the tax base without burdening the people further.

He appealed for the IMF’s support in this regard.

Reforms Purchasing Power Tinubu

In response, IMF Managing Director Kristalina Georgieva praised Nigeria’s economic reforms, noting their positive indicators, and expressed the IMF’s commitment to supporting Nigeria in diversifying its economy. She specifically commended the government’s social investment programs, emphasizing their importance in cushioning the impact on vulnerable populations. She assured the President that the IMF would continue to assist in this area.

Georgieva further clarified that the IMF is dedicated to supporting developing nations and allocating significant resources to emerging economies. She highlighted the IMF’s role in assisting countries in strengthening institutions to better manage future global economic shocks.

In her remarks, she also informed President Tinubu that the IMF’s Executive Board had approved the creation of a third Chair for Sub-Saharan Africa (SSA), strengthening Africa’s voice in global economic discussions.