Presidency Highlights Economic Gains from Tinubu’s Reform Agenda
The Presidency has outlined what it described as significant progress in Nigeria’s economy, following reforms introduced under President Bola Tinubu since May 2023.
Special Adviser to the President on Media and Public Communication, Sunday Dare, stated in a post on his official X handle on Thursday that Nigeria’s economy, which was at a “breaking point” before Tinubu assumed office, is now recording measurable improvements across critical sectors.
Trade and Foreign Reserves
Dare explained that before the reforms, Nigeria consistently ran a trade deficit, importing more than it exported and weakening the balance of payments. According to him, reforms have now reversed the trend, with Nigeria recording a trade surplus that eases pressure on external accounts.
On foreign reserves, he said:
- In early 2023, unmet FX demand was at $7 billion,
- Net reserves had fallen below $4 billion, leaving the economy exposed.
Reforms, he noted, have cleared FX forwards, rebuilt reserves to over $23 billion, and restored investor confidence by expanding FX access, even for naira card users.
Exchange Rate and Fiscal Discipline
Dare pointed to the unification of Nigeria’s multiple exchange rate windows, which had previously distorted the economy and created wide gaps between official and parallel markets. He said the reforms have narrowed these gaps and reduced uncertainty.
On fiscal management, he emphasized:
- Ways and Means borrowing from the Central Bank had exceeded ₦30 trillion by May 2023.
- Reforms have since curtailed this practice through tighter fiscal discipline and gradual draw-downs.
Revenue, Taxation, and Debt Servicing
Nigeria’s tax-to-GDP ratio, previously stuck below 10%, has risen to over 15% through revenue reforms. Meanwhile, debt servicing, which previously consumed 97% of government revenue, has now fallen below 50%, freeing funds for development.
Fuel Subsidy Removal and Budget Reforms
The presidential aide described the removal of fuel subsidy as a turning point. He said subsidies were unsustainable, drained resources, and left Nigerians with recurring fuel scarcity. Eliminating the subsidy has freed funds for investments while ensuring steady fuel supply and positive FAAC inflows to states.
Dare added that Nigeria’s budget structure has also improved:
- Deficits are declining,
- Infrastructure spending is expanding, reversing years of low capital expenditure.
Oil and Gas Sector
Nigeria’s oil and gas industry, which had faced sharp declines due to theft, sabotage, and mismanagement, has begun to recover. Dare credited reforms and renewed security efforts for lifting oil output, thereby restoring Nigeria’s key revenue stream.
Investment Climate and Ratings
Dare noted that Nigeria’s pre-reform investment climate was opaque and inconsistent, discouraging capital inflows. He said reforms have since created a predictable and transparent policy environment, attracting new investments and earning Nigeria sovereign rating upgrades.
Inflation, Jobs, and Poverty
While acknowledging that inflation remains high, Dare stated that the pace of increase is moderating, and interest rates are stabilizing. He also highlighted government efforts to tackle poverty and unemployment, saying reforms are opening pathways for job creation through infrastructure investments and policies that support decent work.
Overall Economic Outlook
According to Dare, Nigeria’s fiscal management has become more coordinated, transparent, and disciplined under Tinubu’s administration. He argued that without the reforms, Nigeria would have faced a worsening cycle of deficits, collapsing reserves, hyperinflation, ballooning debt, and possible economic collapse.
He concluded that while challenges remain, Nigeria is on a recovery path, with reforms laying the foundation for sustainable growth and stability.
