A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has urged the Bola Tinubu-led administration to set up shock absorbers to cushion the pain of ordinary citizens in the country.
Moghalu, the president of the Institute for Governance and Economic Transformation, made the comment in reaction to the reforms embarked upon by the Tinubu administration.
He, however, stated that foreign investors are excited about Nigeria’s possibilities following initial policy reforms announced by President Tinubu.
He specifically mentioned the government’s fuel subsidy removal and the CBN’s Naira exchange rate unification.
Moghalu, who is also a professor at the Fletcher School, one of America’s oldest graduate schools of international relations, also cautioned that the government must be wary that investors are seeking strictly profits in Nigeria.
“Foreign investors are excited about Nigeria’s possibilities following initial policy reforms announced by President Bola Tinubu and the Central Bank of Nigeria – fuel subsidy removal/ Naira exchange rate unification.
“Heading into a call with one of the world’s biggest banks seeking my views.
“Of course, investors are one thing (they are focused on their profits), and the masses of Nigeria are another. They are bearing most of the brunt of the necessary but painful reforms.
“The Nigerian government must move quickly to set up shock absorbers to cushion the people’s pain.”
Experts say reforms are necessary for growth and development, but it doesn’t come cheap and with roses.
But, there is a school of thought in the country that trimming the cost of governance is as necessary as these reforms.