The Positive Impact of President Tinubu’s Reforms in Nigeria
President Tinubu has been resolute in his commitment to addressing the challenges faced by Nigeria, particularly the economic woes sparked by the reforms his administration has introduced. In a recent interview with a leading newspaper, President Tinubu assured the public that proactive measures will continue to be taken to tackle these problems and that positive outcomes are expected to emerge in the New Year.
The removal of fuel subsidy and the merging of foreign exchange rates, two significant reforms implemented by the Tinubu administration, have resulted in issues such as high fuel prices and depreciation of the naira, consequently leading to a general increase in the costs of goods and services. Many Nigerians have expressed their concerns about the rise in the cost of living.
According to the National Bureau of Statistics (NBS), Nigeria’s inflation has surged to 28.2 per cent in November from 27.33 per cent in October, with food inflation rising from 31.52 per cent to 32.84 per cent during the same period. Additionally, the departure of multinational companies from Nigeria due to the challenging business environment has further aggravated the economic situation.
However, it is essential to note that the current economic issues cannot be solely attributed to the new policies. Prior to President Tinubu’s assumption of office, Nigeria was already grappling with significant economic challenges. The budget deficit was at N10.8 trillion, while the actual debt service accounted for 98.95 per cent of revenue, significantly surpassing the projected 59.37 per cent. Foreign reserve inflows were minimal, leading to difficulties in remitting funds for foreign airlines.
President Tinubu’s decision to abolish the wasteful fuel subsidy, despite criticisms, has been pivotal in addressing the economic issues. Although his administration has garnered commendations from global financial institutions and rating agencies, President Tinubu remains focused on reviving the economy for sustainable growth and prosperity.
It is heartening to observe that the reforms are gradually yielding positive outcomes. In the third quarter of the year, Nigeria’s GDP expanded by 2.54 per cent, showcasing an improvement from the same period in the previous year. The service sector played a significant role in this growth, contributing 52.7 per cent to the aggregate GDP. Furthermore, sectors such as construction, real estate, and mining have reported growth, with the oil sector exhibiting a notable recovery.
The NBS’ report also highlights a significant increase in trade volume and a trade surplus in the third quarter, indicating a promising trajectory for the economy. The value of exports has surged, particularly in the crude oil segment, underlining the country’s enhanced oil production for export purposes.
The Minister of Budget and National Planning, Atiku Bagudu, has affirmed that the ongoing reforms, supported by robust monetary and fiscal policies, will pave the way for economic prosperity in Nigeria. President Tinubu’s unwavering commitment to addressing the challenges and implementing proactive measures bodes well for the future, with an optimistic outlook for all Nigerians.
In conclusion, President Tinubu’s efforts to navigate Nigeria through its economic challenges have laid the groundwork for a more resilient and prosperous future. As the reforms continue to unfold, it is anticipated that the positive impacts will be felt by all segments of society, marking a new era of economic stability and growth.
Bayo Onanuga serves as the Special Adviser on Information and Strategy to President Bola Tinubu.
