Nigerians had a glimpse of the economic outlook yesterday.
The Federal Government stepped up efforts to rein in inflation, increase productivity and boost savings and investments.
The initiatives are expected to lead to a general improvement in the average living standards.
Vice President Kashim Shettima and Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun said Nigerians should expect significant improvements in the overall economic performance.
The assurances came as the National Bureau of Statistics (NBS) indicated that the unemployment rate reduced from 5.3 per cent in the fourth quarter of 2022 to 4.1 per cent in the first quarter of 2023.
Edun said ongoing government initiatives would put an end to hyperinflation and a decade-long decline in Gross Domestic Product (GDP) per capita.
He spoke at the retreat from the Presidential Committee on Fiscal Policy and Tax Reforms in Abuja.
According to him, the era of GDP per capita falling by 30 per cent over the past 10 years is over with the president’s ‘Renewed Hope Agenda’.
He also assured that the issue of “hyper-inflation in the nation’s economy would soon be a thing of the past”.
Nigeria’s inflation rate rose by 129 basis points from 22.79 per cent in June to 24.08 per cent in July, driven by the general increase in prices of basic living costs.
Edun noted that the government’s agenda would “create jobs, reduce poverty, control micro and macroeconomic policies, attract investors, stabilize the exchange rate and drive the economy to reduce poverty to the lowest level”.
He noted that although the removal of fuel subsidy has slowed down the economy, interventions have been put in place to cushion the pains of reform and correct subsidy leakages.
Edun reminded members of the Presidential Committee on Fiscal Policy and Tax Reforms of Tinubu’s 30-day deadline to deliver something tangible on their assignment, urging them to fast-track their assignment as there was no time to waste.
Shettima said the Tinubu administration was structuring its economic reforms and diplomatic alliances to attract investments and partnerships to Nigeria.
The Vice President, who led a high-powered delegation to represent Tinubu at the 15th BRICS Summit, addressed world leaders at the 3rd BRICS-Africa Outreach and BRICS Plus Dialogue on the sidelines of the BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa.
Shettima said while the administration repositions the economy and diplomatic alliances, it would also be working to align with international and regional cooperation.
“The new government, which began less than three months ago, is examining the variables and evaluating the scope and level of regional and global cooperation to pursue in order to establish Nigeria as the desired friend and partner,” Shettima said.
He addressed a large audience which included Presidents of China, India, Brazil, South Africa and Russia’s Foreign Minister.
He noted that the theme of the Dialogue: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism,” underscored the profound realisation that the cornerstone of stability within intricate multipolar landscape lies in fostering developmental partnerships.
He commended the organisers, saying the agenda aligns with “the aspiration of the people we represent, the future citizens of a world that can ensure our collective prosperity”.
Shettima said the dialogue provided a unique platform for deliberation, note comparison, and exploration of a mutually beneficial partnership that could evolve into a novel driving force for development.
“The international global governance structure to which we currently adhere was established prior to the independence of the African continent and many countries in the global south.
“So, it’s indeed imperative to reform global governance to align with the realities of today’s world and to acknowledge the necessity for partnerships that ensure shared prosperity, inclusivity and sustainable development,” the Vice President said.
He assured that the Tinubu government “is committed to shaping and fortifying the global framework and governance concerning all major international issues, particularly in the fields of finance, climate change, bridging the digital divide, adopting a comprehensive strategy towards debt alleviation, addressing food and energy insecurities, instituting post-pandemic recovery measures, and fostering financial inclusion within developing countries”.
Stressing the need for a revitalised international cooperation that is effective, representative, and inclusive to tackle the challenges facing the world, Shettima said Nigeria is ready for collaboration and partnership that guarantees a world governed by acceptable rules and norms.
“We seek partnerships that provide opportunities for all to engage in trade, prosperity, and shared progress with no marginalisation based on geography, race and legitimate sovereign affiliations,” Shettima said.
Reflecting on the 2030 Agenda for the Sustainable Development Goals (SDGs), the Vice President explained that several nations confront historical developmental vulnerabilities and challenges that are beyond their control and thus need to unite within regional groups and forge a novel form of international cooperation to foster the SDGs.
He added that global partnerships would also strengthen vibrant private sector participation among the countries of the global south, nurture youth employment and skill building as a deterrent against terrorism, organised crime, and related challenges.
Earlier in his address on the 3rd day of the summit, the Chair of BRICS and President of South Africa, Cyril Ramaphosa, expressed the commitment of South Africa to advance the interests of the global south.
He announced that as part of the outcomes of the summit to expand its objectives, the group has approved the admission of six new full members including Argentina, Egypt, Iran, Saudi Arabia, Ethiopia and the United Arab Emirates.
In its report on Nigeria Labour Force Survey (NLFS), Q4 2022 & Q1 2023, the NBS stated that the unemployment rate was 5.3 per cent in the fourth quarter of 2022 and 4.1 per cent in the first quarter of 2023.
The report indicated that more Nigerians are becoming self-employed.
The share of wage employment was 13.4 per cent in the fourth quarter and 11.8 per cent in the first quarter of 2023.
It stated that the proportion of Nigerians operating their businesses or engaging in farming activities rose from 73.1 per cent in the fourth quarter of 2022 to 75.4 per cent in the first quarter of 2023.
The report also showed improvement in working hours with 36.4 per cent and 33.2 per cent of employed persons working less than 40 hours per week in the fourth quarter of 2022 and the first quarter of 2023.
The report indicated that this trend was common among individuals with lower levels of education, young people, and those living in rural areas.
The NBS, in the first quarter of 2023, said about 76.7 per cent of working-age Nigerians were employed as against 73.6 per cent recorded in the preceding quarter.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, said the terms of reference of the committee are fiscal governance, revenue administration, and tax policy review.
According to him, the deliverables from the committee included optimum taxes, harmonised revenue collection functions, a revised national tax policy, national fiscal framework, preparation of bills for constitution amendment, revenue optimisation, production of a model template for sub-nationals and establishment of the national tax amnesty scheme.
On the delegation of the Vice President to the BRICS Summit were Nigeria’s High Commissioner to South Africa, Amb. Mohammed Haruna Mantra, the Consul-General, Amb. Andrew Idi and other senior government officials.
