President Bola Tinubu has been referred to as \u201cBaba Go fast\u201d, a description which is the exact opposite used for Muhammadu Buhari, his predecessor.<\/strong><\/p>\n

Tinubu, who took charge barely two weeks ago, has removed fuel subsidies and directed the Central Bank of Nigeria (CBN) to abolish the multiple exchange rate window.<\/button><\/p>\n

In a report, Reuters said the Nigerian leader is \u201cpushing to put Africa\u2019s largest economy on a reform track that investors have eyed for decades\u201d.<\/p>\n

\u201cPresident Bola Tinubu\u2019s bold actions, including removing restrictions on the naira currency that allowed it to hit a record 790 to the dollar and subsidy removals that tripled petrol prices, could take the stress off the battered finances of Africa\u2019s largest economy.\u201d<\/p>\n

<\/div>\n

\u201cBut investors, burned by previous reforms that ultimately proved hollow, say it will take time to build trust and listed myriad questions over the final shape of the economy,\u201d the report read.<\/p>\n

Tunde Ajileye, a partner at Lagos-based SBM Intelligence, was quoted to have said, \u201cIf this stays, then it would mean that (Tinubu) had been able to remove the two subsidies that have crippled Nigeria fiscally and monetarily for the last decade.\u201d<\/p>\n

On his part, Andrew Matheny. a \u00a0Goldman Sachs economist, said, \u201cJust the fact that you have seen quite a bit of movement in a relatively short space of time has gotten a lot of people in the market excited.\u201d<\/p>\n

However, the report said Investors remained wary, citing years of damaging currency controls.<\/p>\n

Goldman Sachs pegged the backlog of FX demand at a staggering $12 billion.<\/p>\n

\u201cWe are still to see whether this will allow the FX backlog to clear, where the new market rate will stabilise, whether this will catalyse inflows into the country and \u2026 that there will be no issues pulling money out of the country,\u201d said John Mumo, a partner at Blakeney, an Africa-focused equities fund management firm.<\/p>\n

Investors also worry about low tax receipts and falling oil output \u2013 structural reforms that will take far longer to sort.<\/p>\n

Joe Delvaux, a portfolio manager at Europe\u2019s largest asset manager Amundi, said it could take months or more to lure longer-term cash.<\/p>\n

\u201cUltimately, you also have to keep in mind that the biggest provider of FX will still be the CBN,\u201d Delvaux said.<\/p>\n

\u201cWe need to see that the system works.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

President Bola Tinubu has been referred to as \u201cBaba Go fast\u201d, a description which is…<\/p>\n","protected":false},"author":2,"featured_media":6674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[73],"class_list":["post-6673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-tinubu"],"yoast_head":"\n