Ahmed Bola Tinubu, acclaimed National Leader of the ruling All Progressives Congress (APC), is worried that his party may be running the Nigerian economy aground.
He has, therefore, sought a quick review of the economic policies being pursued by the Buhari-led administration.
Tinubu raised the alarm on Wednesday while addressing an
elite audience (Course 25) at the National Defence College, Abuja. He had been invited to deliver a public lecture on, “Strategic Leadership: My Political Experience”
Managers of the Nigeria economy, he argued, must come to terms with the desire of most people for a restructured system where true federalism reigns as “unjust allocation of resources makes a fertile ground for extremism.”
Tinubu cautioned the administration not to get sucked in by its current victories on the security front saying, “We now have to shift primary focus to the economic front.”
For him, there was an urgent need “to move closer to the overarching vision.”
For him, there was an urgent need “to move closer to the overarching vision.”
Insisting there was no better choice than to “speak truth to power,” Tinubu said, “The desired economic restructuring will require a change in economic mindset and strategy. We must avoid the nostrums of mainstream orthodoxy that say government deficits are always bad.”
Counselling on the need to deal with policy inconsistencies, he said, “The monetary policy must be consistent with the environmental need of our domestic requirements. You cannot hold on too much or too tight to a policy. Let me give an example. What they call security reserve today in the bank at 27 percent, you have to be able to bring that one down, if the government has to be able to host its treasury bond at 18 percent upfront, effective rate of borrowing is at 23 percent.”
We have to criticise ourselves when it is necessary, speak truth to power. We are the power; we will talk the truth to ourselves.Where we see contradictions in the policy, we are going to talk about it. This is a democratic country and this is our government
“What am I doing if I have a billion, and you are ready to give me 180 million, that is 18 percent upfront, do I have to work or do anything again? So those are the factors that they have to look at quickly to ease the burden. You have to stimulate this economy, you have to spend yourself out of the recession and you cannot do that by consistently stifling the banks of the liquidity that is required. It’s their money; it’s the savers money,” he warned.
Tinubu said the leadership of the APC must criticise certain policies of government when the need arises. “We have to criticise ourselves when it is necessary, speak truth to power. We are the power; we will talk the truth to ourselves.
“Where we see contradictions in the policy, we are going to talk about it. This is a democratic country and this is our government; we are not like the other party that will invent one lie to bury a lie and other mistakes; we tell you the truth. Where we are weak, must identify it as Nigerians and tell the truth. They have a monetary policy team; they must look into it. We need a constant evaluation. How does it affect the market and ordinary people as well?
“If there is no liquidity in the economy, the banks will price out the ordinary man and when you look at inflation, growing at 18 percent, we are talking of recession. The danger is there that it might get to 20 something, if you are over squeezing or you are too tight,” he said.
“In the situation we face, deficit spending is essential to bolster aggregate demand and direct funds to projects that build infrastructure and bolster employment.”
He added, “We must have better harmonize monetary policy with fiscal policy. It undercuts our goals if monetary policy is unduly tight at a time fiscal policy begets deficit spending.
“We must also realign trade policy with our need to create a meaningful industrial base and more potent agricultural sector. We can no longer allow cheap imports to preclude the development of industries and sectors strategic to our enduring economic future.”
Buhari’s handling of the economy has received sharp criticisms for perceived lack of direction with very senior cabinet members embarrassingly disagreeing publicly on policy thrusts.
Inflation rate has hit the highest mark in over a decade with the manufacturing sector groaning over lack of basic inputs and job losses climbing to an all time high.
Worse still, the government has found it difficult to keep the oil taps flowing leading to dwindling oil revenue as militants consider the administration unwilling to find lasting solutions to their demands for resource control.
Tinubu’s position is seen by analysts as a gradual loss of confidence in policy direction which, if not actively tackled, may further jeopardize APC’s reputation and goodwill.
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