The President of the African Development Bank (AfDB), Akinwumi Adesina, has called upon President-elect Bola Tinubu to prioritize reducing the cost of governance in Nigeria.
Adesina made this statement during the inauguration lecture, which is part of the activities leading up to Tinubu’s swearing-in as Nigeria’s next president.
Adesina highlighted the detrimental effects of the bloated size of government on public sector expenditure and the overall development process in the country.
He emphasized the need to allocate more resources towards development, as Nigeria currently ranks low on the human development index compared to other countries worldwide.
Addressing Tinubu directly, Adesina urged him to tackle the challenges of governance from the very first day in office.
He stressed the importance of leadership that can instil hope for security, peace, and stability in the country.
During his lecture on “Strengthening Nigeria’s Economy,” Adesina emphasized the necessity for Nigeria to heal and unite as a nation.
He called for a collective effort that transcends party lines and fosters inclusiveness, fairness, equity, and justice.
Adesina underscored the urgency of prioritizing macroeconomic and fiscal stability in the new administration.
He emphasized that unless the economy is revitalized and fiscal challenges are addressed effectively, the resources needed for development will be insufficient.
The AfDB President highlighted the substantial fiscal deficits faced by Nigeria, attributed to high government expenditures, reduced revenue from crude oil exports, pipeline vandalism, and illegal oil bunkering.
He also drew attention to the rising debt-to-revenue ratio, which poses significant challenges for debt repayment and economic growth.
Adesina emphasized the need for bold decisions to end inefficient fuel subsidies in Nigeria.
He argued that these subsidies primarily benefit the rich rather than the poor, leading to wasteful spending on fuel for government and personal vehicles.
He emphasized that the poorest segment of the population consumes a minimal amount of petrol, demonstrating the inequitable distribution of fuel subsidies.
The AfDB President stated that fuel subsidies are detrimental to Nigeria’s economy, costing the country billions of dollars annually.
He suggested that by eliminating these subsidies and utilizing the resources for national development, Nigeria can reduce its reliance on borrowing.
Instead of perpetuating fuel subsidies, Adesina advocated for funding and support towards establishing private refineries and modular refineries.
He commended the newly commissioned Dangote Refinery, highlighting its potential to revolutionize Nigeria’s economy through increased efficiency and improved services.
Adesina concluded his lecture by congratulating Aliko Dangote for his significant investment in the $19 billion Dangote Refinery, emphasizing its positive impact on Nigeria’s economic transformation.
