The Positive Developments during Seven Months of Tinubu’s Presidency

Since late May, the administration led by President Tinubu has implemented significant reforms, including the removal of fuel subsidies and the consolidation of foreign exchange rates. However, these measures have been accompanied by challenges such as an increase in fuel prices and the depreciation of the Naira, leading to higher costs of goods and services for many Nigerians.

According to the latest report from the National Bureau of Statistics (NBS), inflation has risen to 28.2% in November, up from 27.33% in October. Food inflation has also increased to 32.84% from 31.52% during the same period. These economic issues, coupled with the departure of multinational companies, have created a challenging operational environment and a shortage of US dollars.

It is important to note that these economic difficulties were not solely caused by recent policies. Nigeria was already facing tough conditions prior to President Tinubu taking office on May 29th. By June 2023, the budget deficit had reached N10.8 trillion, and the actual debt service amounted to 98.95% of revenue, exceeding the projected 59.37%. The country’s foreign reserves were stagnant, and Nigeria was unable to remit around $800 million in funds from foreign airlines.

President Tinubu, who had pledged to make difficult decisions during his campaign, took swift action in addressing these challenges by eliminating the wasteful fuel subsidy. Despite earning praise from international organizations such as the World Bank and the IMF, President Tinubu remains focused on improving the economy for growth and prosperity.

The reforms are already showing positive results. The NBS reported a GDP growth of 2.54% in the third quarter of the year, which is higher than the 2.25% growth in the same period in 2022. The service sector was a major contributor to this growth, with a 3.99% increase, while the agriculture sector experienced a slight decline from 1.34% to 1.3%.

Other sectors such as construction, real estate, metal ores, coal mining, chemical and pharmaceutical products, and cement also experienced growth, with the oil sector reporting an improved negative growth of -0.85% compared to -22.67% in the previous year. The increase in oil production can be attributed to improved security of oil infrastructure and operations.

Additionally, the volume of trade and trade surplus both showed significant improvement in the third quarter. The value of exports increased by 60.78% to N10.35 trillion, while imports rose by 60.8% to N8.46 trillion. These developments indicate a boost in economic prosperity supported by strong monetary and fiscal policies.

President Tinubu has acknowledged the temporary challenges brought about by the reforms but remains committed to proactively addressing them. With continued proactive measures, it is expected that the current economic situation’s underlying positive aspects will evolve into brighter prospects for all Nigerians.

In conclusion, the first seven months of President Tinubu’s administration have brought about significant changes and reforms in Nigeria’s economic landscape. While challenges persist, the positive developments provide hope for a brighter economic future under his leadership.