President Bola Tinubu has reiterated his administration’s commitment to prioritising the welfare of the poor and vulnerable, even as the effects of ongoing economic reforms heightens.
He made this assurance during a meeting with Kristalina Georgieva, Managing Director of the International Monetary Fund, in Rio de Janeiro, Brazil, on the sidelines of the G20 Leaders’ Summit.
A press statement signed by Bayo Onanuga, the Special Adviser to the President on Information and Strategy, confirmed the President’s remarks during the meeting, which took place on Wednesday night.
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While acknowledging the strain on Nigerians’ purchasing power due to the reforms, Tinubu emphasised the government’s dedication to implementing social safety nets to mitigate these challenges.
“We have started seeing positive results from our reforms, and the Nigerian people now understand the need for them, but we have to reduce the hardship that has resulted from the implementation,” he stated.
The President used the occasion to congratulate Georgieva on her re-election for a second term, expressing gratitude for her support in implementing the reforms and calling for continued institutional backing for stability and sustainable growth.
Education as a Priority
President Tinubu also underscored the importance of addressing Nigeria’s educational challenges. “We have too many children out of school, and we know that education is a way out of hunger and poverty. That is why we are designing ways and incentives to keep these children in school, and we need your support for these kids who want to stay in school,” he said.
Tax Reforms and Infrastructure Development
Speaking on economic growth, the President highlighted Nigeria’s ongoing tax reforms aimed at expanding the economy’s tax base without increasing the burden on citizens.
“We are engaging stakeholders and sensitising Nigerians to expand the economy’s tax base for inclusive developmental growth. We are doing this without necessarily increasing the taxes on our people who have already given a lot. We will require your support on this,” he told the IMF chief.
He also stressed the need for substantial investment in infrastructure to drive development, reiterating his administration’s resolve to channel resources effectively.
IMF Commends Reforms, Pledges Continued Support
In her response, Kristalina Georgieva commended the Tinubu administration’s economic reforms, noting their positive indicators. She expressed the IMF’s readiness to provide further assistance in diversifying Nigeria’s economy and praised the social investment programmes designed to cushion the impact on the most vulnerable.
Contrary to misconceptions about the IMF’s role, Georgieva clarified that the organisation is dedicated to supporting vulnerable societies and has channelled substantial resources into emerging economies.
She also assured Tinubu of technical support for Nigeria’s budgeting process, which she said would optimise the benefits of loans. “We will assist Nigeria in achieving the best possible results from loans,” she affirmed.
Global Economic Challenges and Africa’s Role
Georgieva reflected on the global economic shocks caused by the COVID-19 pandemic, revealing that the IMF injected about $1 trillion into the world economy over the past two years. While developed nations managed these shocks better, developing countries struggled, she noted, adding that the IMF is working with such nations to build resilient institutions capable of weathering future crises.
She highlighted the importance of equitable access to IMF resources, stating, “It is the right of every country to benefit from the Fund after a critical analysis of its priorities.”
Georgieva further informed Tinubu that the IMF’s Executive Board had approved a third chair for Sub-Saharan Africa, thereby strengthening Africa’s voice within the organisation. She also congratulated Nigeria on successfully hosting the IMF’s African Caucus meeting in Abuja in August.
Advocating for deeper regional economic ties, Georgieva pledged the IMF’s support in advancing integration across Africa.
With mutual commitments to reforms and support, the meeting underscored the collaboration between Nigeria and the IMF in navigating global economic challenges while ensuring that the most vulnerable are not left behind.
