Global Courant
President Bola Ahmed Tinubu took the oath of office on May 29, 2023, following his victory in a closely contested presidential election, as stated by INEC. During one of his campaign stretches, he was questioned about his plans for the first days in office, whereupon he vowed to hit the ground running.
True to his campaign promise, the president has figuratively hit the ground running by implementing a number of economic policies and actions, demonstrating his commitment to jump-starting Nigeria’s struggling economy. Hardly a week has passed since he was sworn in without the president announcing or initiating major economic measures, and multiple actions have been taken in a matter of weeks.
Although Nigeria is the “Giant of Africa”, it faces numerous economic challenges that place it at a critical time. Among other things, the country is struggling with high debt, rising inflation and high unemployment. Nigeria’s economy is at a tipping point and requires skillful leadership to navigate it back onto a path of progress if the country is to maintain its relevance both within the continent and globally. Currently, Tinubu appears to be the man for the job, until perhaps the court says otherwise during the ongoing presidential tribunal.
President Tinubu is still in the economic race and we cannot say for sure whether it will be a sprint or a marathon. Nevertheless, here are some notable economic decisions he’s made since becoming president of Africa’s largest economy.
Data protection law.
In June, President Bola Ahmed Tinubu signed into law the much-anticipated Data Protection Act 2023. The landmark legislation establishes a comprehensive legal framework for protecting personal information and regulating data protection practices in the country.
The Data Protection Act 2023 gives you the right to demand what type of data is collected, where it is stored and who else will use that data other than the company that collected it. You can also demand that the company erases or corrects the data in use at any time. In addition, you can object to the use of data for marketing purposes.
Data protection is an urgent concern in Nigeria, where the collection of personal data is often insufficiently safeguarded. And it is exacerbated by the alarming increase in data breach incidents, adding urgency to address data protection challenges. Hopefully the new law will help reduce its prevalence.
Abolition of fuel subsidies
During his inaugural address on May 29, President Bola Tinubu stated that there would be no more petroleum subsidy scheme as the current 2023 budget he saw does not contain.
Fuel subsidies have placed a significant financial burden on Nigeria, resulting in significant debt for the country. Following the announcement of the elimination of subsidies, there has been a notable rise in the prices of several commodities, affecting Nigerians who rely heavily on fuel for essential activities such as transportation.
But the elimination of fuel subsidies is expected to bring long-term benefits, as funds previously allocated to financing subsidies can now be used to alleviate debt and redirected to vital sectors of the economy. This includes investments in education, healthcare and infrastructure, which can contribute to sustainable development and improve the overall well-being of Nigerians.
Last week, operators within the downstream oil and gas sector said the federal government has brought in N400 billion due to the elimination of fuel subsidies in the 30 days.
Naira exchange rates unification.
Last month, the Central Bank of Nigeria (CBN) announced the unification of all segments of the foreign exchange (FX) market, effectively introducing a currency float system. This system allows the exchange rate of the local currency to be determined by market forces of supply and demand within the forex market.
As with any major change, this decision carries both positive and negative implications. On the upside, unification is expected to boost foreign exchange inflows, particularly from portfolio investors, foreign direct investment (FDI) and earnings from exporters. However, there is a potential negative effect in the form of higher government debt, measured in the local currency (naira). The economy is still in the early days of unification and some market disruptions and resets are observed. However, there is a sense of optimism that these temporary challenges will ultimately yield positive outcomes for the economy.
Electricity bill
President Bola Tinubu has approved the electricity bill and authorized states, companies and individuals to generate, transport and distribute electricity. This newly passed Electricity Act repeals the Electric Power Sector Reform Act (EPSRA) signed into law by President Olusegun Obasanjo in 2005. This represents a major shift in the regulatory landscape of the energy sector.
The primary purpose of the bill, as stated in the very first part, is to create a comprehensive legal and institutional framework to guide the Nigerian Electricity Supply Industry (NESI). This will de-monopolize Nigeria’s electricity generation, transmission and distribution at the national level, to enable states, companies and individuals to generate, transport and distribute electricity.
We previously wrote about how the decentralization of power could be a new dawn for Nigeria’s struggling energy sector. Overall, the new bill is a step in the right direction. In a few years, power generation in Nigeria, if maximized, should have improved commendably, leading to robust economic growth.
Student loan
President Bola Tinubu has passed a bill introducing interest-free education loans for Nigerian individuals interested in tertiary education.
The Access to Higher Education Act of 2023, also known as the Students Loan Act, establishes an Education Loan Fund to help Nigerians finance their higher education. Beneficiaries will begin paying in installments two years after completing their participation in the National Youth Service Corps (NYSC) program.
This simply means that the implementation of this initiative can alleviate the negative consequences, such as the need to drop out of school, postpone semesters or struggle to balance part-time jobs and their studies, which they often have to deal with. have to do.
But we also revealed some disadvantages of the policy borders on corruption, the rigidity of loan repayments and job prospects, among others.
