The Positive Impact of President Tinubu’s First 7 Months in Office
President Tinubu’s administration has been characterized by significant economic reforms, particularly the removal of fuel subsidy and the move to merge foreign exchange rates. These reforms have led to an increase in the cost of living and a spike in inflation, but it is important to note that the economic challenges facing Nigeria today have deeper roots that preceded the current administration.
Prior to President Tinubu assuming office, Nigeria was already contending with a budget deficit of N10.8 trillion and a debt service that accounted for 98.95 percent of revenue. The country’s foreign reserve was also in a dire state, as reports revealed that Nigeria could not remit about $800 million fund of foreign airlines. This near insolvency was further exposed by a report from JP Morgan, which claimed that Nigeria’s net foreign reserve was just about $3.7 billion, far lower than the $33 billion projected by the CBN.
President Tinubu, who had promised to make difficult decisions during his campaign, swiftly moved to address these economic challenges by abolishing the wasteful fuel subsidy and implementing reforms to reset the economy. While these actions have received praise from international bodies such as the World Bank, the IMF, and rating agencies like Moody’s and Fitch, President Tinubu remains focused on the task of driving economic growth, development, and prosperity for Nigeria.
Despite the initial hardships caused by the reforms, there are clear signs of progress. Nigeria’s GDP grew by 2.54% in the third quarter of the year, an improvement from the 2.25% growth recorded in the same period in 2022. The service sector, particularly information and communication, financial and insurance, contributed significantly to this growth. Additionally, growth was also recorded in sectors such as construction, real estate, metal ores, coal mining, chemical and pharmaceutical products, and cement.
The industrial sector experienced an uptick in growth compared to the previous year, indicating a positive trend despite challenges posed by the exit of multinational companies. The volume of trade also saw a significant increase, with a trade surplus of N1.89 trillion in the third quarter. This was a marked improvement from the trade deficit recorded in the same period in the previous year.
The value of exports rose by 60.78% to N10.35 trillion, with crude oil accounting for 82.5% of the total exports. Import values also increased, reflecting a higher volume of trade activity. Minister of Budget and National Planning, Atiku Bagudu, highlighted the potential for economic prosperity in Nigeria through the implementation of ongoing reforms, supported by strong monetary and fiscal policies and intervention programmes in food supply management.
President Tinubu has acknowledged the temporary pains caused by the reforms and has given assurance that his administration will continue to take proactive measures to address the prevailing challenges. With measures already underway and the promise of further actions in the coming year, it is anticipated that the positive effects of these reforms will become more pronounced, bringing economic relief and prosperity to all Nigerians.
