A recent editorial by the London-based Financial Times has raised concerns about the progress of President Bola Tinubu’s economic reforms in Nigeria. The publication acknowledged Tinubu’s initial steps, such as removing the fuel subsidy and transitioning towards a market-driven exchange rate, as positive measures to attract investors. However, it noted signs of challenges and issues arising in the past four months.
The editorial expressed unease about the unconventional removal of Godwin Emefiele, the former Governor of the Central Bank of Nigeria (CBN), stating that it raised eyebrows and appeared to be politically motivated. The report also highlighted that the new exchange rate regime implemented by the CBN has not been adequately explained.
Regarding the appointment of the new CBN governor, the report mentioned that markets view him favorably, considering him a sound choice. However, it anticipated that the incoming governor might need to increase interest rates in the next policy meeting to address inflation concerns.
The Financial Times emphasized the importance of restoring institutional independence to the CBN, urging President Tinubu to allow the bank to carry out its duties without interference. The report also called for clarity and articulation of policies to the public, urging the president to refrain from announcing plans without a clear implementation strategy.
In conclusion, the editorial emphasized the significance of execution in policy implementation and called for President Tinubu to regain momentum in his economic reforms. The publication suggested that, four months into his presidency, the initial positive steps risked losing momentum and needed active and articulate leadership to succeed.
