Economic policies may hurt ‘in short term’, says Buhari

 

President Muhammadu Buhari yesterday reviewed his administration’s economic policies, warning that they may be hurtful “in the short run”.

In the long run, things will be better, the President said in New Delhi, India, where he is attending the Third Indian-Africa Forum. He was addressing the Chief Executives of Indian companies with interests in Nigeria.

Despite the fall in oil prices, his administration, he said, remained committed to maintaining macro-economic stability and improving investors’ confidence in Nigeria.

The economy, the President said, should not suffer unduly from low oil prices because Nigeria is blessed with human and material resources.

“What is required of us, to which we are strongly committed, is the implementation of tight expenditure controls, effective fiscal and monetary policies, including the husbandry of scarce resources which our introduction of the Single Treasury Account has began to address.

“We are aware some of these measures may hurt operations of some businesses in the short term, but we believe they are right for a sustainable economy,” he said.

Stressing that India has been a dependable ally of Nigeria, Buhari urged the Chief Executives to expand their companies’ investments in Nigeria  ”so that we can, together, turn our engagements into a win-win situation for our two countries.”

He added: “We can increase and diversify the current volume of our bilateral trade beyond US$16.36 billion, and diversify to other critical sectors such as agriculture; green technologies in power generation; infrastructure; information and communications technologies; the services sector; education; industry, especially textiles and solid minerals among others.”

Buhari also urged the Indian CEOs to accept the changes in policy being introduced by his administration and observe all extant Nigerian laws in running their businesses in the country.

The President warned that his administration would not tolerate the importation of sub-standard goods, especially foods and medicines, into Nigeria.

The government’s plan to sustain the current naira value was criticised by Emir of Kano Muhammad Sanusi II as unsustainable.

He also warned against retaining petrol subsidy. But labour has taken the emir up on his position, saying  removal of subsidy and naira devaluation will hurt the poor.