Reforms weakened Nigerians’ purchasing power but we’ll prioritise social investment programmes – Tinubu

President Bola Tinubu has assured that his administration will continue to prioritise the welfare of the poor and most vulnerable even as the economic reforms bear fruit.

A statement signed by the Special Adviser to the President on Information & Strategy, Bayo Onanuga, said that Mr Tinubu stated this on Wednesday night in Rio de Janeiro, Brazil, when the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, paid him a courtesy call on the sidelines of the G20 Leaders’ Summit.

Kristalina Georgieva, IMF Managing Director (Photo Credit: @KGeorgieva)

While acknowledging that the reforms had weakened Nigerians’ purchasing power, President Tinubu said his administration will continue to provide social safety nets to cushion the unintended consequences.

Congratulating the IMF Chief on her election for a second term in office, Mr Tinubu appreciated her support in implementing the reforms, calling for more institutional backing for stability and sustainable growth. He also emphasised the critical need for educational access.

“We have started seeing positive results from our reforms, and the Nigerian people now understand the need for them, but we have to reduce the hardship that has resulted from the implementation.

“We have too many children out of school, and we know that education is a way out of hunger and poverty. That is why we are designing ways and incentives to keep these children in school, and we need your support for these kids who want to stay in school,” he told the IMF chief.

Mr Tinubu stressed that substantial resources must be invested to stimulate the much-needed infrastructural development in the country. The president further noted that Nigeria is working on tax reforms to stimulate the economy further.

“We are engaging stakeholders and sensitising Nigerians to expand the economy’s tax base for inclusive developmental growth. We are doing this without necessarily increasing the taxes on our people who have already given a lot. We will require your support on this,” he said.

In her remarks, the IMF boss, who expressed a desire to visit Nigeria, commended the Tinubu administration’s economic reforms and their positive indicators. She assured the president of further support in diversifying the Nigerian economy.

She specifically lauded the social investment programmes as a way of cushioning the effects on the most vulnerable and promised the assistance of the body in this regard.

Contrary to popular perception, she said that the IMF is focused on developing vulnerable societies and devoting substantial resources to emerging economies.

The managing director expressed the Fund’s readiness to offer technical support for the budgeting process, adding that it will assist Nigeria in achieving the best possible results from loans.

Ms Georgieva said the world had suffered some shocks from the pandemic that caused damage to world economies. Over the last two years, the IMF has injected about $1 trillion into the world economy.

While the developed countries managed the shocks better, the developing nations did not do so, she noted.

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She said the IMF is working with developing countries to build resilient institutions to better manage future global economic shocks. She stressed that it is the right of every country to benefit from the Fund after a critical analysis of its priorities.

The IMF MD informed President Tinubu that the organisation’s Executive Board has approved the 3rd Chair for Sub-Sahara Africa (SSA), enhancing the African voice. She congratulated Nigeria on hosting the IMF’s African Caucus meeting in Abuja in August.

Ms Georgieva also advocated for deepening regional economic ties, ensuring the IMF is ready to support this process.