Taiwo Hassan 
As President Bola Tinubu counts the gains of his administration within 100 days in office, a key component of the country’s private sector group, the Centre for the Promotion of Private Enterprise (CPPE), has hinged on the need for the establishment of quality economic governance consistent with tested principles and empirical evidence in order to revamp the country’s macroeconomic challenges.
In particular, CPPE explained that as parts of the present administration’s reform policies, the elimination of fuel and foreign exchange subsidies would save the economy an estimated N10 trillion annually. The Chief Executive Officer (CEO) of CPPE, Dr. Muda Yusuf, made this known in a document made available to New Telegraph in Lagos. He said prioritising the country’s macroeconomic stability with emphasis on moderating inflationary pressures, stabilising the exchange rate and boosting economic growth would require a good mix of fiscal and monetary policies.
The CPPE helmsman said in the report that good economic governance consisted of quality team to give guidance on general economic policy direction, policy conceptualisation and needed reforms, noting that fiscal deficit should be kept within statutory thresholds. According to him, the current administration should take note that policies must be reviewed periodically in the light of prevailing circumstances.
To him, this is not to suggest an endorsement of policy summersault, which is very disruptive to the economy. He added that this was critical from the onset for positive signaling and the deepening of investor confidence. Precisely, Yusuf suggested that the government should ensure level playing field for all economic players, and avoidance of state capture, adding that no economic management model should be adopted in absolute terms.
While speaking on the current government’s foreign exchange policy reform in its 100 days in office, he said: “Recent foreign exchange policy reform is laudable. It would unlock inflows of capital into the economy, reduce arbitrage in the forex market and improve transparency in the forex allocation. “Removal of impediments to market mechanism in allocation of forex will boost inflows from Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Export Proceeds and Diaspora remittances.
“However, we should avoid a complete floatation of the naira to avoid currency volatility amid intense speculative pressures. “I must also acknowledge that the reform has its downsides, especially the further depreciation of the currency, which is expected to be temporary.” On the importance of fiscal consolidation for economic resilience in the country, the renowned economist suggested that “reform of the tax regime to ensure efficiency in tax administration, reduce tax evasion and tax avoidance and eliminate multiple taxation.
“Also, some steps are already being taken in this respect as the government has set up a fiscal and tax reform committee.” According to him, “elimination of fuel and foreign exchange subsidies would save the economy an estimated N10 trillion annually and nlock more income from revenue generating agencies through enhanced efficiency of their operations. “Initiate budget reforms to ensure fiscal discipline, curb budget padding, curb duplication of projects and review the service wide votes to ensure transparency.
“Ensure value for money in government expenditure and procurement. Commit to reduction in the cost of governance. Optimisation of the utilisation of national assets to unlock liquidity.” On the role of stakeholders in Nigeria’s economic growth, Yusuf stated: “This is important because we are still in a transition mode. The Tinubu administration just marked its 100 days in office. “In making this presentation I would review the fundamentals of a resilient economy, the necessary macroeconomic conditions, fiscal and monetary policy dimensions, sectoral reforms and the role of stakeholders in deepening economic resilience.”
