Nigeria’s President Bola Ahmed Tinubu was sworn in as Nigeria’s 16th president on May 29, 2023, and has wasted no time in implementing his economic agenda for the country.
In his first 30 days in office, he has taken some bold and controversial decisions that have shaken up the status quo and generated mixed reactions from Nigerians and the international community.
During his inauguration speech on the 29th of May 2023, President Tinubu shocked analysts and observers when he announced the removal of fuel subsidies.
Here are 10 of the most significant economic decisions he has made so far:
10. Unification of the naira
In a significant policy shift, President Tinubu announced his government’s decision to unify the exchange rate, replacing the previous multiple exchange rate regime implemented during the administration of former President Buhari by the Central Bank of Nigeria (CBN).
- The move is expected to enhance transparency, reduce distortions, and boost confidence in the naira.
- The unified exchange rate is now determined by market forces, with the CBN intervening only to smooth out volatility.
9. Inauguration of the economic council
On June 14th, 2023, President Tinubu inaugurated a new economic council to advise him on economic policies and reforms, coinciding with the Central Bank of Nigeria’s announcement of the unification of the forex market, merging all segments into a single window.
- The council, typically consisting of 36 state governors, the CBN governor, and other officials, aims to foster collaboration among governments at all levels. The Vice-President chairs the council.
- The council is expected to provide independent and evidence-based advice to the president on how to achieve his vision of transforming Nigeria into a prosperous and inclusive economy.
8. Removal of CBN Governor
On June 9, 2023, President Tinubu ordered the suspension of the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.
- The reasons for Emefiele’s suspension are believed to be related to issues including the handling of the naira redesign policy, a failed presidential bid, and policy mishandlings such as mismanagement of foreign exchange reserves and ineffective monetary policies.
- The Central Bank Act does not explicitly allow for the suspension of the CBN Governor during an ongoing investigation, raising concerns about the independence of the central bank.
- Mr Emefiele was also directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), Mr Folashodun Adebisi Shonubi, who will act as the Central Bank Governor pending the conclusion of the investigation and the reforms.
7. Managed float of the naira
On June 20, 2023, The Central Bank of Nigeria disclosed that the recent monetary policy decision implemented is not a free float but a managed float.
- In a Bloomberg in Rabat, Morocco, Deputy Governor Kingsley Obiora revealed that the Central Bank of Nigeria clarified its recent monetary policy decision.
- The deputy governor also expressed caution in determining whether the exchange rate of the naira to the dollar has reached its lowest point, suggesting that it may still be too early to make such a determination.
- The decision to move to a managed float exchange rate policy is in line with the president’s decision to pursue a more market-driven forex policy.
6. Removal of fuel subsidy
President Tinubu abolished the fuel subsidy, which had been a source of corruption, inefficiency, and fiscal burden for decades.
- The subsidy had cost the government over N1 trillion annually while benefiting mainly the wealthy and the smugglers.
- The removal of the subsidy is expected to free up resources for infrastructure, health, education, and social welfare programs, as well as encourage private investment in the downstream sector of the oil industry.
- The price of fuel has since more than doubled from an average of about N185/litre to an average of about N495/Litre depending on where you are buying from.
5. Dissolution of governing boards of FG parastatals
On the 16th of June, President Bola Ahmed Tinubu approved the immediate dissolution of the Governing Boards of all Federal Government Parastatals, Agencies, Institutions, and Government-Owned Companies in the exercise of its Constitutional Powers and in the Public interest.
- The dissolution does not affect Boards, Commissions, and Councils listed in the Third Schedule, Part 1, Section 153 (i) of the 1999 Constitution of the Federal Republic of Nigeria as amended.
- The permanent secretaries were also mandated to act as chief executive officers accordingly.
4. Suspension of EFCC chair
On June 14, 2023, President Tinubu approved the removal of the chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, who had been appointed by former President Buhari in February 2021.
- Mr Bawa was accused of being compromised, ineffective, and partisan in his fight against corruption.
- He was also directed to immediately hand over the affairs of his office to the Director, Operations in the Commission.
3. Appointment of national security adviser
On June 19, 2023, President Tinubu announced the appointment of Mallam Nuhu Ribadu as the national security adviser (NSA).
- He said he chose Ribadu because of his integrity, experience and expertise in security matters.
- He is also expected to coordinate all aspects of national security.
2. Retirement of service chiefs and appointment of new ones
On June 19, 2023, the Office of the Secretary to the Government of the Federation (SGF), announced the retirement of all service chiefs and their replacements.
1. The signing of electricity, student loan and data protection acts respectively
On June 14, 2023, President Tinubu signed the Nigeria Data Protection Bill 2023 into law. The newly enacted legislation establishes a legal framework for safeguarding personal information and promoting data protection practices in Nigeria.
The bill, which was introduced to the Senate and House of Representatives on April 4, 2023, via a letter from former President Muhammadu Buhari, has now become an Act.