The British government has expressed its support for Nigeria’s economic reforms, stating that unifying the forex market and removing the petrol subsidy will contribute to the nation’s long-term economic prosperity.
The UK Secretary of Foreign, Commonwealth, and Development Affairs, James Cleverly, commended President Bola Tinubu for his bold approach to improving the Nigerian economy.
During a meeting at the State House on Wednesday, Mr. Cleverly praised the President’s decisive actions, recognizing that while the initial adjustments might bring some challenges, they will ultimately lead to economic prosperity for Nigerians.
The UK Secretary of Foreign Affairs assured Nigeria of the UK’s interest in investing in its economy and emphasized the country’s potential to become a net exporter of energy and agricultural products with the right reforms and investments.
Mr. Cleverly also highlighted the UK’s commitment to being a strategic long-term partner to Nigeria and Africa, acknowledging the young, educated, and talented population as valuable assets for economic growth.
President Tinubu’s decision to end the petrol subsidy and float the naira by allowing market forces to determine exchange rates has been acknowledged as a positive step for the economy.
While the policies are projected to save at least N13 trillion over three years, the removal of subsidies has led to an initial surge in fuel prices, affecting the cost of food and transportation and triggering hardships across the country.
The World Bank also emphasized the importance of compensating transfers to protect vulnerable households from the immediate impact of the subsidy reform.
These compensations will be essential in preventing households from falling into poverty and resorting to coping mechanisms with long-term adverse consequences.
Despite the challenges, the British government and international stakeholders recognize Nigeria’s commitment to economic reform and its potential for attracting foreign investment.
By staying the course and addressing the needs of vulnerable households, Nigeria can pave the way for sustained economic growth and prosperity for its citizens in the future.