Former Vice President Atiku Abubakar has expressed concerns that President Bola Tinubu’s economic policies are hindering the growth of businesses, both large and small, in the country.
In a statement released on Tuesday, Atiku noted the challenges faced by the private sector due to the current economic policies and urged for immediate action.
“The manufacturing sector, which holds the key to higher incomes, jobs, and economic growth, has been bogged down by rising input prices, higher energy and borrowing costs, and exchange rate complexities,” Atiku stated.
He proposed six economic rescue strategies for Tinubu’s administration to consider:
Pause and Reflect
Atiku stressed the importance of understanding the necessary reforms and establishing a clear framework with defined objectives and strategies.
He said, “First, pause and reflect. It is important that the government understands what reforms must be undertaken and in what sequence. A framework is needed with clearly stated reform objectives and strategies.”
Review the 2024 Budget
The former vice president recommended a comprehensive review of the 2024 Federal Government Budget within the new reform framework to address structural defects and the cost-of-living crisis.
“Second, undertake a comprehensive review of the 2024 budget within the new reform framework. The 2024 FGN Budget, the exact size of which remains a mystery, is not designed to address the structural defects of the Nigerian economy or the cost-of-living crisis. It will neither create prosperity nor promote opportunities for our young people to lead a productive life,” Atiku wrote.
Revamp SIP, support MSEs
Atiku urged for an extensive review of the SIP to mitigate the impacts of current policies on vulnerable households, expanding beyond Conditional Cash Transfers to support Micro and Small Enterprises (MSEs) across various economic sectors.
“Third, undertake a comprehensive review of the Social Investment Programme (SIP) to mitigate some of the impacts of these policies on the most vulnerable households. The SIP must go beyond Conditional Cash Transfers to include programmes that prioritise support to MSEs across all economic sectors, as they offer the greatest opportunities for achieving inclusive growth,” Atiku said.
“In addition, a holistic programme to support medium and large-scale enterprises to navigate the stormy seas in the aftermath of the withdrawal of subsidy on PMS is also needed.”
Exercise caution on taxation
Atiku warned against imposing new taxes or increasing tax rates, citing potential negative effects on the populace, including plans to increase the Value Added Tax (VAT) rate and reintroduce excise on telecommunication.
He added that Tinubu must be cautioned against any attempt to further pauperise the poor by introducing new taxes or increasing tax rates.
He said, “We are aware of the behind-the-scenes attempts to increase the VAT rate from 7.5% to 10%, reintroduce excise on telecommunication, and increase excise rates on a range of goods.
Address fuel subsidy concerns
Atiku urged for transparency regarding the fuel subsidy regime, including the fiscal implications, cost of fuel importation, and the impact on the Federation Accounts.
He said, “Fifth, provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact of this on the Federation Accounts. It is curious that since April 2024, fuel queues have mounted at many filling stations across Nigeria, and the infamous ‘black market’ has sprouted in several states. How much PMS is being imported and distributed, and at what cost? What is the implicit subsidy?”
Prioritise Security
Atiku stressed the need for President Tinubu to prioritise security and overhaul the nation’s security architecture to address the pervasive insecurity, particularly affecting agricultural production in northern regions.
“President Tinubu, as a matter of priority, needs to rejig the nation’s security architecture as what is currently in place is not serving the needs of the people. The state of pervasive insecurity continues to adversely impact agricultural production and the value it brings to the economy, especially in the Northern parts of the country,” he added.