Vice President Kashim Shettima has reiterated the commitment of President Bola Ahmed Tinubu’s administration to fiscal responsibilities and management.
He said the recent ranking by global credit rating agency, Fitch, which upgraded Nigeria’s credit outlook to positive, was a vindication of the administration’s stand and also a reflection of increasing confidence in the nation’s economy.
Fitch Ratings recently revised the Outlook on Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Positive from Stable, and affirmed the IDR at ‘B-‘.
This, the VP said, clearly underscored the effort of the administration in achieving transparency in its fiscal dealings.
A statement by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, quoted Shettima as saying this Thursday during the 141st meeting of the National Economic Council (NEC) at the Presidential Villa, Abuja.
He said: “There is no doubt that this government has demonstrated transparency in its financial dealings and protections. Therefore, it is not surprising that just a few days ago, Fitch Ratings upgraded Nigeria’s credit outlook to positive, citing reform progress under President Tinubu.
“This reflects the increasing confidence in our economic trajectory, especially in light of policy changes aimed at reducing our debt service burden.”
The NEC session also had members of the Institute Chartered Accountants of Nigeria (ICAN) in attendance to “shed light on the accountability index and their ranking of states on public financial management (PFM).”
This, the VP noted, would serve as a guide to government at all levels to adjust their “finances and planning for the rainy days based on realistic projections.”
…State of the economy
Similarly, the NEC deliberated on the general state of the economy and resolved to do more to improve the situation across the country, especially in the area of supporting the growth of Micro, Small, and Medium Enterprises (MSMEs).
While urging Council members to assess the administration’s journey so far and acknowledge the impact of their decisions, Shettima drew the meeting’s attention to the nation’s MSMEs, which he described as the backbone of the country’s economy.
“As we plan for stability, we must remember that the backbone of our economy isn’t solely comprised of our big corporations. While these entities play a vital role in tracking the nation’s productivity and employment data, it is our Micro, Small, and Medium Enterprises (MSMEs) that should keep us awake at night.
“Accounting for about 96% of all businesses in the country and contributing 49% of the national GDP, MSMEs are the backbone of our economy. The past few months of our efforts to mend the economy have caused disruptions that have sent shockwaves throughout the industry. We cannot afford to ignore this reality; immediate intervention is essential to mitigate the damage and ensure their survival,” Shettima said.
Describing the access to capital as a central driver to Tinubu administration’s effort at tackling poverty through job creation, he said: “Therefore, our agenda today revolves around the ongoing and proposed interventions we have designed to support our small businesses.
“Whether it is addressing the inflationary impacts of the inevitable solutions proposed to save the economy or tackling the issue of high-interest rates at our financial institutions, our focus is on ensuring the survival and prosperity of these enterprises.”
He also underscored the role of digital technology in the growth and sustainability of small businesses, tipping Investment in Digital and Creative Enterprises (iDICE) as “a work in progress to upscale these businesses.
“The potential of our creative and digital economic sector is vast, and iDICE presents an opportunity to explore it and offer our people an advantage to compete fairly with their counterparts from other parts of the world,” the VP said.
…Flooding
On flooding, Shettima called for proactive measures in tackling the menace this year, even as he urged all Nigerians on vigilance.
He said: “We cannot afford to be caught off guard by a disaster that we are all too familiar with, one that has devastated various communities across the nation, including our urban centers.
“We must not merely prepare for a cure; instead, we must take proactive measures to prevent this annual cycle of loss of lives and properties. While the tragedy itself may be natural, the management of the emergency is within our control.”
Speaking on the Human Capital Development (HCD) Programme launched by the immediate past administration, the former lawmaker said the federal government “is set to commence its implementation phase tomorrow (today) under this NEC dispensation, with the inauguration of the steering committee and core working group.”
…CBN on account balances
Addressing the meeting on the account balances, Governor Central Bank of Nigeria (CBN) Yemi Cardoso briefed the Council on the update of the Excess Crude Account (ECA), Stabilisation and Development of Natural Resources accounts.
Cardoso said the ECA as at the end of April 2024, stood at $473,754.57, while the Stabilization account stood at N17,209, 155,588.20, during the same period.
The CBN boss also put the Development of Natural Resources Account at N62, 307,926,804.17, also at the end of April, 2024.