The London-based Financial Times has expressed doubts about the success of President Bola Tinubu's economic reforms in Nigeria. In an editorial, the publication acknowledged Tinubu's initial steps, such as removing the fuel subsidy and adopting a market-driven exchange rate, as positive moves toward economic reform. However, it raised concerns about recent developments in the country.
One of the issues highlighted by the report was the removal of Godwin Emefiele, the former Governor of the Central Bank of Nigeria (CBN), which it described as unconventional and possibly politically motivated. The report also noted that the new exchange rate regime lacked proper explanation.
Regarding the management of the financial system, the report suggested that the new CBN leadership might need to raise interest rates to combat inflation. It praised the appointment of Cardoso, a former Citibank Nigeria chair, as a sound choice but called for greater institutional independence for the central bank.
The report urged President Tinubu to communicate his policies more clearly to the public and refrain from announcing plans without a clear implementation strategy. It emphasized the importance of execution and maintaining momentum for the success of economic reforms.
As President Tinubu's administration faces these challenges, Nigeria's economic future remains uncertain, with questions about the effectiveness of its reform agenda.
