President Bola Tinubu is dealing with the assets and liabilities inherited from his predecessor, Muhammadu Buhari, less than 30 days into the job.
However, unlike in 2015, the new president is unable to criticise his predecessor on his liabilities because they are both members of the All Progressives Congress, APC.
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President Tinubu admitted during the National Economic Council’s inauguration, “The situation that we have seen is one- I inherited, and it is fundamental, I inherited assets and liabilities of my predecessor.”
Pro-market people and forces have praised his reforms, particularly the elimination of fuel subsidies and deliberate attempts to end multiple exchange rates.
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President Tinubu inherited the following liabilities from his predecessor, Buhari.
Debt of N77 trillion
The former President left the current administration with a N77 trillion debt burden.
The debt management office (DMO) provided the figure. This is possibly the most significant liability that the previous administration left for the current administration.
“The danger with the debt burden is that even if the subsidies are removed, a large portion of federal government revenue will be used for debt servicing,” Lekan Olaleye, an economist, told Ejes Gist News.
“The ongoing reforms mean the government cannot afford to introduce any form of new taxation,” he added. The government must raise the minimum wage while also dealing with the loans.”
Subsidy for petrol
The outgoing administration had budgeted for petroleum subsidies until June 30, but Mr Tinubu did not wait until then, declaring in his inaugural speech that “fuel subsidies are gone.”
While the administration has been able to eliminate fuel subsidies, the issue of palliative and other interventions has yet to be addressed.
The previous administration only intended to borrow $800 million as a last resort.
Emefiele/Naira restyle
Nigerians are still uncertain about the old Naira notes in their pockets because the Supreme Court order is still in effect until December 31, 2023.
It should be remembered that Nigerians experienced biting Naira note scarcity in the first quarter of the year as a result of the now-suspended CBN Governor, Godwin Emefiele’s Naira redesign policy.
Mr Tinubu promised in his inaugural speech to clean up the monetary space, and Mr Emefiele appears to be the first casualty, facing prosecution by the state secret police, the DSS.
However, Nigerians are still unsure whether the Naira notes in their possession will be worth anything after December.
Census
The new administration also inherited the 2023 national census. The previous administration spent N200 billion on preparations for the population census, which has now been postponed.
Because of the political implications of census figures, population censuses in Nigeria have always been contentious.
It is unclear whether the current administration will continue down this road.
Border closures
The Tinubu administration must also decide whether to close land borders.
During the campaign, only Atiku Abubakar made his position on the border closure clear.
According to the Ejes Gist News, the former Vice President vowed to open the border, which was criticised by Lai Mohammed, the immediate past Minister of Information and Culture.
A memo requesting the reopening of the Seme land border for vehicle importation is said to be awaiting final approval.
