The Positive Developments of President Tinubu’s First 7 Months in Office

The removal of fuel subsidy and the decision to merge foreign exchange rates under the administration of President Tinubu have resulted in challenges such as elevated fuel prices and the devaluation of the Naira, leading to a general rise in the cost of goods and services. Many Nigerians have expressed concerns regarding the escalating cost of living, with inflation reaching 28.2 per cent in November. Food inflation has also continued to rise, reaching 32.84 per cent in November 2023.

Furthermore, numerous multinational companies, including GlaxoSmithKline and Procter & Gamble, have declared their departure from Nigeria due to the demanding business environment and a scarcity of foreign currency.

It is imperative, however, to acknowledge that the economic difficulties cannot be solely attributed to the new policies introduced by the Tinubu administration. These issues are also a result of the conditions that preexisted before the administration’s tenure. Prior to President Tinubu’s assumption of office, the country faced a budget deficit of N10.8 trillion, with debt servicing reaching 98.95 per cent of revenue. Nigeria’s foreign reserves were also declining, and foreign airlines were unable to repatriate approximately $800 million.

President Tinubu, who vowed to make difficult decisions during his campaign, took decisive actions to address the economic challenges from the outset by eliminating the wasteful fuel subsidy. Despite receiving recognition from international financial institutions and rating agencies, President Tinubu remains steadfast in revitalizing the economy for sustainable growth and development.

These efforts have begun to yield positive results. The third-quarter report from the National Bureau of Statistics (NBS) revealed a GDP growth of 2.54 per cent, higher than the 2.25 per cent recorded in the same period in 2022. The service sector, particularly information and communication, and financial and insurance services, played a significant role in this growth, contributing 52.7 per cent to the overall GDP.

Additionally, various industries, including construction, real estate, and mining, experienced growth, while the oil sector showed signs of improvement, with increased production attributed to enhanced security of oil infrastructure. The industrial sector also reported a 0.46 per cent growth, representing a turnaround from the negative growth experienced in the previous year.

The NBS report also highlighted a substantial increase in trade volume, with a trade surplus of N1.89 trillion in the third quarter. The value of exports rose by 60.78 per cent, predominantly driven by crude oil exports, indicating a surge in oil production for export.

Crucially, President Tinubu and his administration remain committed to implementing proactive measures to address the temporary challenges brought about by the reforms. As the Minister of Budget and National Planning, Atiku Bagudu, emphasized, the government’s reforms, supported by prudent monetary and fiscal policies, will contribute to economic prosperity and stability.

While the economic reforms have presented initial challenges, President Tinubu’s administration is dedicated to managing these issues effectively. With continued efforts and interventions, it is anticipated that the positive developments, which are currently understated, will ultimately lead to an improved economic outlook for all Nigerians.