Bola Tinubu’s Win and the Economic Implications for Nigeria
Bola Ahmed Tinubu, Nigeria’s new president-elect has sparked a lot of interest in the economic implications of his presidency. A lot of experts have speculated how his policies could impact various sectors of the Nigerian economy including the stock market and the cashless policy.
In this article, we will explore the potential impact of a his presidency on the Nigerian stock market, its cashless policy and the fuel subsidy.
Rise in Stock
The stock market is often seen as a barometer of investor confidence in a country’s economy, and changes in government policy can have a significant impact on investor sentiment. The last election which was seen as entirely peaceful which could be a signal to potential investors that the incoming president might implement policies that are business-friendly. This can attract investment into Nigeria and boost the stock market.
For instance, if he were to focus on improving infrastructure and creating a more business-friendly environment, this could encourage companies to invest in the country and lead to higher stock prices.
Tinubu’s international connections and experience in international business could also help to attract foreign investors to the Nigerian stock market leading to increased liquidity and higher valuations for Nigerian companies.
However, the country stock market might be affected by global economic factors like changes in oil prices and the outcome of other emerging markets which could influence the presideny-elect performance.
Ahmed Bola Tinubu’s win could influence the country in its aim to adopt a cashless policy. The cashless policy which was intruduced by the Central Bank of Nigeria is an initiative aimed at reducing the use of cash in Nigeria and promoting electronic transactions.
Tinubu who had earlier called or the immediate suspension of associated charges on online transactions and bank transfers and payments via point of sale during the beginning of the naira scarcity said he has his own ideas on how the cashless policy would work in the country.
He also called for the mobilisation of all Money Deposit Banks and payment platforms to show clear commitment and timelines for expanding their infrastructure and support services which validates he support for the cashless policy.
If maintained, it could lead this could have positive economic implications, such as reducing the cost of cash management, increasing efficiency in transactions, and reducing the risk of fraud and theft associated with cash transactions.
It can also improve transparency and reduce corruption. This is especially important for investors who are looking to do business in Nigeria, as corruption can be a significant barrier to entry. By promoting electronic transactions and reducing the use of cash, the cashless policy can help to increase transparency in financial transactions and reduce the risk of fraud and bribery.
However, the implementation of the cashless policy is not solely under the control of the president, but also involves collaboration with the CBN and other stakeholders. Therefore, any changes to the policy would need to be done in consultation with these stakeholders and with consideration for the potential economic implications.
Bola Tinubu’s win in the Nigerian elections could influence the country’s fuel subsidy policy, as he has previously spoken in favor of removing the subsidy. According to him, “It is based on this idea that I believe we must remove the PMS subsidy immediately. It has outlived its shelf life as a public good. We will neither subsidize neighbouring countries’ fuel consumption nor allow a select few to reap windfall profits and hoard products.
Fuel subsidy has been a controversial issue in Nigeria, as it is often seen as an inefficient use of government resources that benefits only a small portion of the population.Tinubu’s victory as the president-elect could be a solid ground for the removal of fuel subsidy.
He also added that the subsidy money will not be saved because that means elimination from the economy but would be redirected into public infrastructure, transportation, affordable housing, education and health, and strengthen the social safety net for the poorest of the poor, thus averting increased security challenges.
The economic implications of Bola Tinubu’s win on fuel subsidy in Nigeria are still uncertain and will depend on the specific policies that he decides to implement if he takes office. The removal of the subsidy could be a positive step towards economic reform,
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