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

President Tinubu’s administration has implemented substantial economic reforms over the past seven months, including the removal of fuel subsidy and the consolidation of foreign exchange rates. These reforms have presented challenges such as high fuel prices and a weakened Naira, but have also stimulated positive changes in various sectors of the economy.

The most recent NBS report indicates that Nigeria’s inflation rate rose to 28.2% in November, with food inflation reaching 32.84%. Furthermore, the departure of multinational companies like GlaxoSmithKline and Procter & Gamble has been attributed to a difficult operating environment and a scarcity of the dollar. Prior to these reforms, Nigeria was already facing economic challenges, as evidenced by a budget deficit of N10.8 trillion and low inflows into the country’s foreign reserves.

President Tinubu’s decision to eliminate the fuel subsidy, which was projected to consume about N7 trillion this year, demonstrates his commitment to making tough but necessary decisions to address the economic crisis. Despite receiving praise from various international organizations for these reforms, President Tinubu remains focused on achieving sustainable economic growth and prosperity for Nigerians.

Amidst the prevailing economic challenges, there have been positive developments that suggest a potential turnaround in the near future. The NBS Q3 report revealed a GDP growth of 2.54%, higher than the growth recorded in the same period in 2022. The service sector, particularly information and communication, financial and insurance, played a significant role in driving this growth. Additionally, growth was observed in sectors such as construction, real estate, metal ores, coal mining, chemical and pharmaceutical products, and cement. Even the oil sector, which previously reported negative growth, has shown signs of improvement due to enhanced security of oil infrastructure and operations.

Trade volume has experienced a significant increase, reaching N18.8 trillion in Q3, with a trade surplus of N1.89 trillion. The value of exports has risen by 60.78% compared to the previous quarter, driven primarily by crude oil exports. Import values have also increased, reflecting an overall upturn in trade activity.

Looking ahead, President Tinubu has assured that his administration will continue to take proactive measures to address ongoing challenges and implement further reforms to improve the economic conditions in the country. The Minister of Budget and National Planning, Atiku Bagudu, has emphasized the importance of these reforms in achieving economic prosperity, supported by strong monetary and fiscal policies, food supply management, and intervention programs.

While acknowledging the temporary pains triggered by these reforms, President Tinubu remains optimistic about the future and expects the positive developments to blossom into tangible benefits for all Nigerians in the coming year.

Overall, the first seven months of President Tinubu’s term have presented both challenges and opportunities, and it is clear that his administration is dedicated to steering the country towards a path of sustainable growth and progress.

Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu. (Views expressed are strictly personal and not of TheCable)