A prescription for President Tinubu’s urgent action to stabilize the Naira, tame inflation, and reboot economic growth

As Nigeria grapples with a failing economy and soaring inflation, President Tinubu’s administration faces an unprecedented challenge. The country’s economic woes are a complex web of factors, including a crashing currency, declining oil revenues, inadequate infrastructure, and a lack of diversification in the economy. In this critical moment, President Tinubu must take bold and decisive action to restore economic stability and reboot growth. This comprehensive plan outlines the urgent steps the President must take to revive Nigeria’s economy, focusing on three key areas: stabilizing the naira, taming inflation, and rebooting economic growth.

Stabilizing the Naira: A Strong Currency is Key to Economic Recovery
The value of the naira has plummeted in recent years, eroding the purchasing power of Nigerians and undermining confidence in the economy. To stabilize the naira, President Tinubu must take immediate action to address the root causes of the currency’s decline.

Devalue the Naira: A temporary devaluation of the naira will help increase the value of Nigeria’s exports, attract foreign investment, and boost economic growth. This will provide a much-needed shot in the arm for the economy, allowing businesses to access foreign currency at a more favourable rate and encouraging investment in key sectors like manufacturing and technology.

Improve Monetary Policy: The Central Bank of Nigeria (CBN) must adopt a more flexible monetary policy, reducing interest rates to stimulate lending and increase economic activity. This will provide businesses with access to cheaper credit, enabling them to invest in new projects and expand their operations.

Diversify Foreign Exchange Earnings: Diversifying Nigeria’s foreign exchange earnings is critical to reducing reliance on oil exports and improving the stability of the naira. The government must promote non-oil exports, increase tourism revenue, and encourage foreign investment in key sectors like manufacturing and technology.

Increase transparency in government transactions involving foreign exchange.
Encourage private sector growth by providing incentives for entrepreneurship.
Invest in education and skills development to create a competitive workforce.

Proposed Timeline for Implementation
Short-term (0-6 months): Implement measures to stabilize the naira (devalue currency), improve monetary policy (reduce interest rates), diversify foreign exchange earnings (promote non-oil exports), increase transparency (transparent transactions involving foreign exchange), encourage remittances (encourage Nigerians living abroad to send money back home).

Medium-term (6-18 months): Implement measures to tame inflation (monetary policy reform), adopt fiscal discipline (reduce government spending), implement supply-side reforms (boost productivity), encourage competition (promote competition in key sectors).

Long-term (18-36 months): Implement measures to reboot economic growth (invest in infrastructure development), promote private sector growth (provide incentives for entrepreneurship), diversify economy (promote non-oil sectors), encourage foreign investment (provide a favourable business environment).
By following this comprehensive plan, President Tinubu can put Nigeria back on track towards economic recovery and prosperity.

Christian C. Madubuko, PhD

Dr. Christian C. Madubuko – a Political & Diplomatic Historian, is a Senior Lecturer at the Department of History & International Studies, Nnamdi Azikiwe University, Awka, Nigeria, & a researcher at LaTrobe University, Melbourne, Australia. Madubuko was a former Anambra Commissioner for Trade and Commerce as well as the Executive Director of Operations, Anambra Internal Revenue Service. He writes from Canberra – The Australian Capital Territory, ACT. Mobile/WhatsApp: +2348162527884
E-mail: ogbekingdom@gmail.com

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