President of Dangote Industries Limited, Aliko Dangote, recently expressed his confidence in Nigeria’s potential to revive its economy within a few months.
This assertion came during a briefing with State House reporters following the inauguration of the Presidential Economic Coordination Council (PECC) by President Bola Tinubu.
In a bid to tackle Nigeria’s pressing economic challenges, the PECC brings together a diverse group of government officials, top private sector leaders, and consultants. Notable members include Dangote himself, Chairman of the United Bank of Africa Tony Elumelu, and Chief Executive Officer of the Financial Derivatives Company Limited, Bismarck Rewane.
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The council is mandated to meet monthly and provide strategic economic guidance to the President.
Dangote praised the initiative, noting its potential to foster significant economic improvements for the country and its citizens. He pointed out that the council’s composition is well-suited to offer effective policy advice.
“Most of these things have already been discussed over and over again, it is a matter of implementation. I think the choice of people that are on the PECC is good enough to advise the government on how to implement the policies,” he said.
He noted the vital role of the private sector in driving investment and job creation, while the government should focus on providing conducive policies.
“The private sector will do its bit, which is to invest heavily and create jobs. Governments don’t create jobs; what they do is to give us the right policies. We have all these policies,” he remarked.
Expressing optimism about Nigeria’s economic future, Dangote stated, “I keep saying our issues are not that bad, this economy can be turned around within a few months and I think we are on that way. I thank the President for inaugurating this Council.”
Nigeria faces severe economic challenges, including inflation, and a high cost of living, compounded by the repercussions of the government’s twin policies of petrol subsidy removal and forex window unification.
Economists have pointed to Argentina, which shares similar economic challenges with Nigeria, but where President Javier Milei’s tough austerity measures are successfully curbing inflation. Argentina’s monthly inflation rate in May dropped to 4.2%, the lowest since 2022, marking the fifth consecutive month of decline. The significant drop in inflation follows Milei’s implementation of stringent fiscal policies, which include reducing government spending and focusing on stabilizing the currency.
In stark contrast, Nigeria is criticized for its extravagant government spending, which benefits only the political elite. The administration of President Bola Tinubu has come under criticism for its lavish expenditures. Recently, the federal government was under heavy backlash because of significant funds being allocated to non-essential projects and luxuries for political leaders, all financed by borrowed money due to a decline in oil revenue.
Nigeria’s oil sector, plagued by mismanagement and corruption, has seen a significant drop in revenue. This shortfall has forced the government to rely on loans to finance its budget. Critics argue that this approach is unsustainable and detrimental to the country’s long-term economic health.
Highlighting the disparity between the government’s priorities and the needs of the populace, observers point to examples of lavish spending. For instance, funds have been allocated for luxurious renovations of government buildings, the acquisition of expensive vehicles for officials, and costly foreign trips. Meanwhile, ordinary Nigerians grapple with rising prices, unemployment, and inadequate public services.
Dangote, who also decried the high rate of interest rate in the country – lamenting that it will hinder economic growth, said the PECC needs to get to work immediately to address the economic headwinds.
“We will start working immediately and I can assure you (that) you will see a lot of changes coming. We have what it takes to turn around this economy. We are going to work hard to make Nigerians proud,” he said.