Former Vice President Atiku Abubakar has given insights into how would have managed the removal of fuel subsidy and foreign exchange which the President Bola Tinubu-led administration has undertaken.
He said unleashing reforms to determine an appropriate exchange rate, cost-reflective electricity tariff, and PMS price at one and the same time is certainly an overkill.
Atiku, who admitted that he campaigned on subsidy removal, however said have would have prioritized tackling corruption; paid attention to Nigeria’s poor refining infrastructure; adopted a gradualist approach in the implementation of the subsidy reforms; and implemented a robust social protection programme that will support the poor in navigating the cost-of-living challenges arising largely from reform implementation.
As for the foreign exchange problem, the former Vice President said he would have encouraged the Central Bank to adopt a gradualist approach to FX management.
He added that a managed-floating system would have been a preferred option, stressing that “Given Nigeria’s underlying economic conditions, adopting a floating exchange rate system would be an overkill.”
The former vice president said these in a statement reacting to what he said were inquiries to him on what he would have done differently if he were at the helm of the country’s affairs.
On security, Atiku said he would have commenced, on day one, the reform of security institutions with improved funding, and enhanced welfare.
Referring to his Policy Document with which he campaigned in 2023, Atiku said he would have adopted alternative approaches to conflict resolution such as diplomacy, intelligence, improved border control, deploying traditional institutions, and good neighbourliness.
He also said he would have launched an Economic Stimulus Fund (ESF), with an initial investment capacity of approximately US$10 billion to support MSMEs across all economic sectors.
Atiku, who was PDP presidential candidate in 2023 and the first runner up to President Tinubu who won the election, said he would have planned better and more robustly.
He said, “My journey of reforms would have benefited from more adequate preparations; more sufficient diagnostic assessment of the country’s conditions; more consultations with key stakeholders; and better ideas for the final destination.
“We would have been guided by my robust reform agenda as encapsulated in ‘My Covenant With Nigerians’, my policy document that sought to, among others, protect our fragile economy against much deeper crisis by preventing business collapse; our document had spelt out policies that were consistent and coherent.”
He added that his reforms would have been sequenced to achieve fiscal and monetary congruence.
Atiku described Tinubu’s reforms to determine an appropriate exchange rate, cost-reflective electricity tariff, and PMS price at one and the same time as an overkill.
“Add CBN’s bullish money tightening spree. As importer of PMS and other petroleum products, removing subsidy on these products without a stable exchange rate would be counterproductive.
“We would have been more strategic in our response to reform fallout. We would not over-estimate the efficacy of the reform measures or underestimate the potential costs of reforms.
“I would recognise that reforms could sometimes fail. I would not underestimate the numerous delivery challenges, including the weaknesses of our institutions, and would work assiduously to correct the same. I would, as a responsible leader, pause, reflect, and where necessary, review implementation.
“I would have led by example. Any fiscal reform to improve liquidity and the management of our fiscal resources must first eliminate revenue leakages arising from governance, including the cost of running the government and the government procurement process. I (and members of my team) would not have lived in luxury while the citizens wallow in misery.
“We would have communicated more effectively with the people, with civility, tact, and diplomacy.
Transparent communication with the public is essential to build public trust, which in turn is important to ensure that the public understands what the government is doing.
“We would have consulted more with all stakeholders to learn, negotiate, adapt, and modify, among other policy goals. We would have demonstrated more empathy. My Reforms would wear a human face.
“We would have been more strategic in the design and implementation of reform fallout mitigating measures. I would not run a ‘palliative economy’ yet, we would have a robust social protection programme that will offer genuine support to the poor and vulnerable and provide immediate comfort and security to enable them to navigate the stormy seas,” he said.
Atiku said his administration would have launched a uniquely designed skills-to-job programme that targets all categories of youth, including graduates, early school leavers as well as the massive numbers of uneducated youth who are currently not in education, employment, or training.
“To underscore our commitment to the development of infrastructure, an Infrastructure Development Unit (IDU) directly under the President’s watch would have come into operation. The IDU will have a coordinating function and a specific mandate of working with the MDAs to fast track the implementation of the infrastructure reform agenda within the framework provided herein.
“The IDU will hit the ground running in putting the building blocks for our private sector driven Infrastructure Development Fund (IDF) of approximately US$25 billion.
“To engender fiscal efficiency and promote accountability and transparency in public financial management, we would have committed to a review of the current fiscal support to ailing State-Owned enterprises. We would’ve also begun a process review of government procurement processes to ensure value-for-money and eliminate all leakages.
“We would have initiated a review of the current utilization of all borrowed funds and ensured that they were deployed more judiciously,” he said.
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