Addressing the Economic Challenge: President Tinubu’s Reforms in Focus
President Bola Tinubu has taken substantial measures to address the challenges brought about by the reforms introduced by the administration in all sectors of the economy. According to the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Tinubu has been proactive in acknowledging the temporary pains triggered by the reforms and is committed to taking further measures in 2024.
In his statement, Onanuga highlighted the significant reforms introduced by the Tinubu administration, such as the removal of fuel subsidy and the move to merge foreign exchange rates, which have led to higher fuel prices and the depreciation of the Naira. These factors have contributed to a general spike in the cost of goods and services, as evidenced by the latest report from the National Bureau of Statistics, which put Nigeria’s inflation at 26.7 per cent in September, rising to 28.2 per cent in November.
Onanuga emphasised that while the new policies have contributed to the current economic challenges, the prevailing conditions before Tinubu took office on May 29 cannot be overlooked. He cited alarming figures, such as a budget deficit of N10.8 trillion and actual debt service reaching 98.95 per cent of revenue, to illustrate the dire state of the economy when Tinubu assumed office.
Despite these challenges, there have been positive developments, as evident in the NBS report for the third quarter of 2023, which showed GDP growth of 2.54 per cent. The service sector, including information and communication, financial and insurance, was identified as a significant contributor to this growth, along with other sectors such as construction and real estate, metal ores, and coal mining.
Moreover, improvements in the oil sector have been attributed to enhanced security of oil infrastructure and operations, resulting in increased production. This improvement is reflected in the substantial increase in the volume of trade and a trade surplus of N1.89 trillion in the third quarter of 2023, compared to a trade deficit in the same period in 2022.
The increase in the value of exports, particularly crude oil, further signifies the positive trajectory of the Nigerian economy. These positive developments demonstrate President Tinubu’s commitment to turning the economy around for growth, development, and prosperity.
In conclusion, while the reforms introduced by the Tinubu administration have posed significant economic challenges, proactive measures are being taken to address them. The positive indicators such as GDP growth, trade surplus, and increased export value are promising signs of the administration’s efforts to navigate the country towards economic stability and growth. As the administration continues to implement strategic measures, it is crucial for all Nigerians to remain informed and engaged in the ongoing economic reforms.
