Adeyemo applauded the leadership of the Tinubu administration in committing to work to tackle money laundering and terrorist financing.
By Jeffrey Agbo
United States Deputy Secretary of Treasury, Wally Adeyemo, has said that the removal of fuel subsidy was an important step in making funds available for the Tinubu administration to run the government.
Adeyemo stated this on Monday in his address titled “US – Nigeria Economic Relations: People, Entrepreneurship, and Investment” at the Lagos Business School.
He said, “First, Nigeria needs a stable Naira. You stop into any small business or market, and you will hear shop owners and customers bemoaning the lack of a stable currency. Unifying Nigeria’s foreign exchange rates will create the kind of macroeconomic stability that is essential to attracting foreign investment. We commend the difficult steps your government has already taken to accomplish this goal. The path to unification is not easy, but going backwards would be even worse.
“Second, the government needs to articulate and implement a fiscal strategy that will provide the resources to make critical investments. I recognize the decision to end fuel subsidies is hard for many Nigerian households, but it was an important early step to create resources the government can use to invest in physical and digital infrastructure, education, and a strong small business environment.
“There is nowhere this need is greater than the agriculture industry, which despite the digital revolution taking place remains Nigeria’s top employer. Its full potential is held back by issues like access to fertilizer, limited use of new technology, access to water and land, the availability of credit, and high market entry costs.
“The need for economic reform does not demand indifference to the pain caused by this transition. This is why partners like the World Bank and African Development Bank are committed to working with your government to provide resources and advice to help smooth this transition for the Nigerian people.
“The third factor for growth is a rooting out of corruption and the perception of corruption in the business environment. I know the Nigerian people are willing to make sacrifices in the service of progress but have a legitimate fear that corruption and mismanagement will dash their hopes that the benefits of these reforms will enrich the people rather than the powerful. I know that Nigerians agree with Wole Soyinka that “it is not fair to those who fight corruption that they have to fight the aggressiveness, the impunity of the corrupt.” Creating economic opportunity will require a government-driven effort that addresses these fears by shining a light on corruption, holding people accountable, and taking meaningful steps to improve the business climate.
READ ALSO:
Elder brother to Peter Obi’s running-mate, Hakeem Baba-Ahmed, joins Tinubu’s govt
“For example, Nigeria is a hotbed for digital entrepreneurship. Taking simple steps like moving government functions online, so Nigerians can apply for business licenses and visas using their smart phones and computers will help improve services and reduce opportunities for fees to go into pockets rather than government coffers. This new government also has the ability to fight skepticism by making reforms that will allow the Nigerian people to better understand how federal, state, and local resources are being used.
“Fourth, and finally, is protecting the integrity of Nigeria’s financial system. The cowardly kidnapper, corrupt official, and fraudster all are seeking to launder their money. Taking steps to make your banking system more secure will help reduce the ability of criminals, terrorists, and others to illicitly use the Nigerian financial system.”
Adeyemo added, “I applaud the leadership of the Tinubu Administration in committing to work with the Financial Action Task Force to tackle money laundering and terrorist financing. Our government stands ready to help work through these steps and challenges in financial institution supervision, implementing controls in high-risk sectors, and pursuing investigations and prosecutions.
“President Biden and our whole administration are committed to taking steps in these key areas that are at the heart of long-term economic growth. As I said at the start, over the past few decades, progress in Nigeria has not been as fast as many hoped or anticipated.
“But, at the same time, the opportunity has never been greater. Your government is pursuing difficult and bold reforms. Your businesses and founders are bursting with ambition and new ideas. And the students I talk to are optimistic and demanding; you all are ready to lead Nigeria to a new chapter. And the United States looks forward to being a partner as you build an economy that works for all Nigerians.”
