The federal government says Nigerians will begin to feel greater benefits from ongoing economic reforms as it consolidates recent gains in inflation, foreign reserves, economic growth and investment.
Tope Fasua, special adviser to the president on economic affairs (Vice President’s Office), said this in an interview with journalists on the sidelines of the IMF/World Bank Annual Meetings in Thailand.
Nigeria’s investment engagements in Thailand showcased 65 transactions and secured more than six billion dollars in private capital commitments.
Mr Fasua said the government was determined to sustain the reforms while introducing social protection measures to cushion the effects of economic hardship on vulnerable citizens.
He said Nigeria’s inflation rate had declined to about 14.63 per cent in September.
“I am optimistic that the downward trend will continue towards the 10 per cent range in the coming months, barring unforeseen circumstances.
“Positive economic indicators have improved Nigeria’s standing with the international investment community.
“What we have seen here is a very good reception towards Nigeria because they see that the macro-economy is doing extremely well,” he said.
Mr Fasua listed declining inflation, easing interest rates, improved foreign reserves and gross domestic product (GDP) growth among the indicators suggesting that the economy was moving in the right direction.
He also cited developments in the capital market, noting that the market had attracted investments estimated at N133 trillion, equivalent to about 100 billion dollars.
Mr Fasua, however, acknowledged concerns that improvements in macroeconomic indicators were yet to translate into corresponding relief for many households.
“The micro-economy can only stand on the macro-economy. If you do not fix the macro, you cannot do anything with the micro,” he said.
He likened economic reforms to laying a solid foundation for a building, adding that sustainable improvements in household welfare required a stable macroeconomic environment.
“President Bola Tinubu has indicated that the period of economic sacrifice is approaching its end, with the government now focusing on consolidating the gains of the reforms,” Mr Fasua said.
He acknowledged that rising fuel prices continued to exert pressure on households and businesses but maintained that several sectors were recording positive developments.
He listed real estate, oil and gas, entertainment and electronic commerce among the sectors showing encouraging performance.
Mr Fasua said the government would resist any move to reverse the reforms, describing the current period as an inappropriate time to abandon the policies.
On measures to address hardship, Mr Fasua said the federal government was developing a social protection package targeting the most vulnerable members of society.
He said the initiative would prioritise elderly people, children and persons living with conditions that limited their ability to support themselves.
“We are not very much a big fan of just collecting money and giving people money. It is better to teach people how to fish than to just give them fish,” he said.
He, however, said direct cash assistance remained necessary for vulnerable citizens who required immediate support.
Mr Fasua said the government was working on documentation to enable it to identify eligible beneficiaries and provide assistance directly to them.
He also emphasised the importance of domestic investment alongside foreign capital, saying both were essential to expanding economic activities and improving living standards.
He said the government was targeting an increase in economic growth from the current rate of 4.43 per cent to six per cent, with the possibility of reaching seven per cent in subsequent years.
Addressing concerns over when ordinary Nigerians would begin to experience the benefits of the reforms, Mr Fasua said the government was conscious of its responsibility to fulfil its promises to citizens.
He said the approach of an election year provided an additional incentive for the government to focus on the welfare of Nigerians and ensure that commitments made to them were delivered.
“We can continue to assure them, but I am personally working on looking at different aspects of the economy to be able to price out what exactly is going on and reduce the level of frustration,” he said.
Mr Fasua also urged the media to play a constructive role in communicating economic developments, noting that accurate information and public awareness were critical to national development.
“Building a prosperous country requires sustained effort, cooperation and patience. Meaningful development can not be achieved within two, three or four years.
“We have only one country, and we all have to come together. Development is not a walk in the park,” he said.
He expressed confidence that Nigeria would achieve its development objectives if the government sustained its reforms and citizens continued to support efforts to strengthen the economy.
(NAN)