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Investors heartened by Tinubu Decisions

It’s very early days indeed, but investors are heartened by early decisions made by Nigeria’s new president, Bola Ahmed Tinubu.

Not a month has passed since his inaugration, but Tinubu has made decisive calls which could auger well.

First was the repeal of the country’s expensive and frequently corrupt oil subsidy, estimated to have cost billions of dollars a year. That was followed up by the suspension of Godwin Emefiele, the influential central banker who helmed the apex bank throughout the Buhari years and pioneered a misguided attempt to keep the naira artificially strong through a multiple exchange rate regime.

The Central Bank signed the death knell for Emefiele’s policies when it allowed the naira to drop as much as 36% on the official market and confirmed FX liberalisation. No policy choices are cost-free, and analysts say the government should offer support to vulnerable sections of the population buffeted by the sudden moves. 

The arrest of Emefiele on top of his suspension also raises eyebrows. Nevertheless, on the whole, the policy moves send a signal that the President understands the urgent need for change in Nigeria, and has left investors cautiously optimistic