 Welcome back, it's still business and sides and plus TV Africa. Now despite claims by the federal government that it will put measures to cushion the effect of subsidy removal, its decision has caused widespread economic consequences as no measure has been put in place. The federal government, the Nigeria Labor Congress, NLC and the trade union Congress TUC are engaged in an eight-week deadline to resolve all contentious issues and implement the resolutions arising from the demands of labor. Nigerians with more than two cars have resorted to the use of just one, but some have also cut down their daily expenses as prices of goods have gone up. This is even as a new tariff regime is about to commence in the energy sector. Now Mokhtar Mohamed joins me now as we look at what Nigerians should hold tenable to account for economically after May the 29th. Thanks for joining me Mokhtar on business and sides, it's always a pleasure. All right so Mokhtar, I think I should start this week, the TUC, the NLC and the federal government, they said they are supposed to discuss the fate of Nigerians that they said eight weeks but it's been four weeks right now since or over four weeks since the introduction or the removal of your subsidy. It's as though Nigerians are the ones actually bearing all the burdens because like I said things have gone up, transportation costs have doubled or even more than doubled and yet it's as though the so-called cushions that we were expecting to see have not even come on spring one month after. Talk to me Mokhtar, what's going on? Foreign administration is still enjoying the honeymoon period with Nigerians and so Nigerians are still just watching but I think that period is beginning to get over and like you said in your introduction, it's over a month now that the subsidy has been removed and yet there's no palliative for the ordinary Nigeria, the government can say oh the economy look boy and we've been able to bring back black market exchange rate as a parallel market and so people are appreciating what we're trying to do and I put the word appreciating because whatever we've seen thus far is pronouncement, we've not seen the structure to guide this pronouncement for us to see the kind of result that we're expecting but I can tell you the honeymoon period is over and Nigerians will begin to ask questions about what is it there for us now because Nigerians know they have problems with the removal of subsidy but their problem has always been how will this money be spent so definitely we are back to that status quo and if you remove subsidy you save over 400 billion and what are your plans for workers? Are you going to see what is the percentage increment in terms of salary by knowing that petroleum is tied around everything and even the president said he took that decision on his own without his left hand putting it in his speech, I thought he would have taken the decision also to increase workers' salary without going to his left hand also but I think what has happened is that the president was in a haste to do it and he did it and ordinarily I think they would have wanted this negotiation to go through before they would remove the subsidy but like I said there's no good time for a better policy and the president have said it has saved us about 400 billion, the more he stayed to ponder on whether to remove subsidy the more we begin to pay the subsidy I think it was a good move but now it has to be action especially in the area of Palletief. Alright but Mokta another question would be don't you think that the government personally was biting much more than it could actually chew looking at the fact that it was actually bringing several policies that is affecting the bottom line of companies even the income of Nigerians, specifically I mean the subsidy removal coming at the same time with the unification of exchange rate because there was a ripple effect and marketers independent marketers were complaining that they they could not really import fuel over time although the story is changing but what do you really think? You answered the question the story is changing so is it those policies were policies that were long overdue, policies that were long overdue but some way along the line none of the previous administration had its political way to do it. I think good luck the village you are trying to do it and the same people that are in power now were the one that frustrated it and so I think if you look at the unification of the exchange rate ordinary should bring price of good and services down because before now exchange rate has gone as high as 780-800, it's right for those that assess the beauty change outside the government window but now it is the lightest of 50 ordinary is supposed to bring down the good of services but I think we will not see this immediate result anytime soon but I personally think that we turn with the policies in place we begin to see those results. I know the very very soon in Sazdo all we had in the gospel the kingdom of God is nigh and all of that but the question right now would be in Sazdo there have been promises fire we're talking about unification of exchange rates and you said it closed at over 700 nigh which is a big still higher if you ask me Mohtar so when will it be how soon can we be taking that breath of fresh air really let me let me let me let me for the past eight years we've not bred fresh air you know we saw the exchange rate move from 80 to 800 850 so we didn't see any fresh air so we don't expect magic I mean the economy was really battered I said it in your program that in spite of all the infrastructural whatever they've been doing the economy was not really it was in a very bad shape we don't expect him to do magic within the next one month or two months but hopefully by the third month of his administration especially when he gets the cabinet in place we see who the cabinets are we could begin to see a game changer in a lot of things like talking here even the Bank of America have said it over the weekend that the Naira is on the value so that's a good thing for the first time we are a international organizations you look your Naira is even on the value that means it should it should work more to the US dollar which is a good thing and they talk about 668 and so I for me I think the Naira was taken by 650 if you look at where we are coming from and where we are then then a lot of things that this will eliminate corruption and other things that you you need to know that it's a greater process because economy was not destroyed in one month the economy was destroyed in eight years so you know it's ready to be fixed in this so we're expecting we expect it to be put back in order in another eight years or how exactly that's just I think we'll get the economy back in order in the next time let's let's let's see the first one let's see the first hundred day of the administration let's see okay what is come up with remember you just said your report the independence petrol marketers will soon begin to bring petrol on product hopefully we are beginning to liberalize that sector okay we also see dango theory finally hopefully July is the date we see it come on stream all that could end up bringing the price of PMS and also the unification will begin to see the foreign investors coming when it's stabilized and I know stability for the exchange rate has a lot to do with the microeconomy indices which those will not change overnight so for the exchange rate we could go into towards end of the year which we begin to see stability on the area of PMS which is particularly what determined price in Nigeria I think in the next two to three months we'll see a very good response in that area all right Mokhtar right now I'm actually keeping my fingers crossed you know hoping for the best but let's look at other things right now specifically let's talk about inflation everyone knows that the cost of food inflation has actually gone high and in a transportation cost I just want to just then project for the end as an ahead of the NBS what do you what's your outlook what do you think the inflation rate would look like for June that just ended well it's going to be high let's let's let's not see what's going to be hard because we see the infant of the removal of soft city we see the infant of unification of exchanges all coming to effect so definitely the inflation has to pressure will be high because a lot of goods have gone up of recent especially the unification of exchanges and the removal of soft city so definitely I think inflation will go high with it 22.7% don't be surprised if we get to like 24% in May when the figure comes comes out in June and that would even also be good even if you look at in terms of price increment in PMS and other item when you look at this increment in the amount of inflation just increase maybe by 2.7% I think it's not too bad okay on the final notes now as we wrap up with you Mokhtar so what should my joints be looking for so I know you said we should give them the president administration you know three months 100 days to put it's cabinet and its house in order after doing the house cleaning that the president talked about but in terms of palliatives I know that's a what would have taught you that being on the immediate see and yet nothing has been done so what should my joints be looking for to should there is there any hope maybe this month in your opinion yeah there's a lot of hope and in the fact that the government said they are still negotiating with labor they said they're gonna have eight weeks we are in the second week of that so we are left with six weeks maybe I'll say it doesn't it didn't it doesn't mean that is each week that we see the changes change will come in gradually as they agree the implement as they agree the implement so if you look at that I say anytime soon you know begin to see relief especially the working class and my only challenge would be if you increase the public sector what happened to the private sector and you're going to mind take them to also increase salary good for low economy part of heritage that would be my that's for me it's gonna be a big challenge for them all right thank you so much I've been speaking with Muqtah Mohammed economics international finance expat thanks for all of your imputes on the show as always we do appreciate them my pleasure Justin have a great week yeah you too so as we go 2030 Nigeria will top the league of table of most extreme poor people in the world overtaken DR Congo India and Madagascar if deliberate steps are not taken to stabilize the economy but this was the submission of professor star from Deccan while they live in his keynote address at the launch of the state of Enterprise report I'll leave you with details of that and I'll see you again tomorrow my name is Justin Akadoni many thanks for watching bye for now