The Positive Impact of President Tinubu’s Economic Reforms

Since assuming office in late May, the Tinubu administration has implemented a series of significant economic reforms, including the elimination of fuel subsidies and the consolidation of foreign exchange rates. Despite initial challenges such as heightened fuel costs and a devaluing currency, recent data indicates that these reforms are beginning to yield positive outcomes.

The most recent report from the National Bureau of Statistics (NBS) shows that Nigeria’s inflation rate has continued to climb, reaching 28.2 per cent in November 2023. Food inflation has also remained a concern, rising from 31.52 per cent in October to 32.84 per cent in November. Furthermore, the departure of multinational corporations like GlaxoSmithKline and Procter & Gamble due to the challenging operating environment and scarcity of foreign currency has added to the economic difficulties.

It is important to note that Nigeria was already confronting substantial economic challenges before President Tinubu assumed office. The budget deficit stood at N10.8 trillion, and actual debt service consumed 98.95 per cent of revenue, exceeding the projected 59.37 per cent. Additionally, the country’s foreign reserves were diminishing, resulting in challenges in remitting funds for foreign airlines.

President Tinubu’s decision to confront these economic issues head-on, including the elimination of the fuel subsidy, which was projected to consume N7 trillion in a year, has been commended by international organizations such as the World Bank and the IMF. Despite the acclaim, President Tinubu remains dedicated to guiding the economy towards growth and prosperity.

The reforms implemented by President Tinubu have begun to exhibit promising outcomes. The GDP grew by 2.54 per cent in the third quarter of the year, representing an improvement from the previous year. The service sector, encompassing information and communication, financial and insurance, played a notable role in this growth, contributing 52.7 per cent of the total GDP. Moreover, various industries, such as construction, real estate, and mining, have also reported favorable growth.

Additionally, the NBS reported a substantial increase in trade volume, reaching N18.8 trillion in the third quarter of 2023, alongside a trade surplus of N1.89 trillion. The value of exports, particularly crude oil, has seen a significant rise, indicating an increase in oil production for export.

Looking forward, it is anticipated that the ongoing reforms, coupled with robust monetary and fiscal policies, will lead to economic prosperity in Nigeria. President Tinubu has acknowledged the temporary challenges associated with these reforms but remains committed to taking proactive measures to address them.

As we approach the new year, there is optimism that the positive impact of President Tinubu’s economic reforms will continue to unfold, ultimately benefiting all Nigerians.

This article was authored by Onanuga, the special adviser to President Bola Tinubu.