Adebajo: Nigeria needs to reset reforms, deliver tangible results by year end

Nigeria's economic landscape is facing turbulent times as the year draws to a close. Tilewa Adebajo, the CEO of CFG Advisory, has highlighted the urgent need for the Nigerian government to reset its approach to ongoing reforms and effectively communicate the benefits to stakeholders. Adebajo emphasized the necessity of delivering tangible results by year-end to steer the country towards a more stable economic trajectory. In a recent interview with CNBC Africa, Adebajo addressed key issues plaguing the Nigerian economy and proposed strategic solutions to combat the current challenges. With only four months remaining in the year, the pressure is mounting on policymakers to navigate a path towards sustainable growth and financial stability. Adebajo's insights shed light on critical areas that require immediate attention to set Nigeria on a course for recovery and progress. The central theme underlying Adebajo's remarks is the need for a comprehensive reset in economic policy and governance to address systemic deficiencies and ensure the effective implementation of reforms. Key points from the discussion include the following: 1. Reform Fatigue and Economic Quagmire: Adebajo expressed concerns over the apparent fatigue in Nigeria's reform efforts, highlighting challenges hindering the successful implementation of critical policies. He pointed out that the recent resurgence of fuel subsidies indicated a setback in the reform agenda, necessitating a thorough review of strategies to realign the country's economic direction. The need for a recalibration of projections to achieve meaningful outcomes by the end of the year was underscored as a priority. Adebajo also raised alarm over the mounting debts and liquidity issues faced by key institutions like the Nigerian National Petroleum Corporation (NNPC), calling for urgent interventions to address the looming financial crisis. 2. Fiscal Resilience and Debt Management: The discussion delved into the fiscal resilience of the Nigerian government amid rising debt levels and budgetary constraints. Adebajo highlighted the importance of enhancing revenue generation and debt servicing mechanisms to alleviate the burden on public finances. With a debt profile of 121 trillion Naira and significant debt service obligations, Adebajo emphasized the need for a strategic approach to debt restructuring and equity infusion to mitigate financial risks and ensure long-term sustainability. He stressed the critical role of transparency and accountability in managing public funds and advocated for a balanced fiscal strategy to safeguard Nigeria's economic stability. 3. Energy Sector Reforms and Refinery Revitalization: Adebajo outlined key priorities in the energy sector, particularly the urgent need to revamp the NNPC's operations and enhance domestic fuel production capacities. He emphasized the critical importance of restructuring NNPC's financial commitments and debt obligations to restore liquidity and sustain operational efficiency. Adebajo proposed strategic initiatives such as selling down oil assets and refinancing NNPC to raise funds and alleviate debt pressures. He underscored the significance of local refining capabilities to reduce reliance on fuel imports and enhance energy security in Nigeria. The quote that encapsulates the urgent call for reform and action comes from Adebajo, who stated, "...government needs a reset on policy direction to be able to address these issues before year end. And what we're saying is that is that happening now? Not yet." Adebajo's insights serve as a clarion call for decisive measures to reset Nigeria's economic trajectory and deliver tangible outcomes to drive sustainable growth and development.