Nigeria: Tinubu declares economic reforms working

Zawya

29-05-2025

• Says only alternative to reforms was fiscal collapse
• Reaffirms commitment to security, national development
• Highlights progress made amid rising cost of living
President Bola Tinubu, in a nationwide broadcast to mark his second year in office on Thursday, declared that the economic reforms implemented by his administration have begun yielding positive results. The President stated that Nigeria is 'on course to building a greater, more economically stable nation,' despite acknowledged difficulties faced by citizens due to the reform process.
In a wide-ranging address from Lagos, President Tinubu reflected on his administration's achievements and laid out his vision for continued national renewal under the 'Renewed Hope Agenda.'
President Tinubu reaffirmed that the removal of fuel subsidies and the unification of the foreign exchange market were critical first steps taken to save Nigeria from a looming fiscal disaster.
'It was apparent that if the federal government and the other two tiers of government must remain viable and cater to the citizens' welfare, we must do away with decades-long fuel subsidies and the corruption-ridden multiple foreign exchange windows,' he said.
According to him, these painful yet necessary decisions have started bearing fruit. He cited a sharp drop in the fiscal deficit – from 5.4% of GDP in 2023 to 3.0% in 2024 – alongside improvements in foreign reserves, which rose from $4 billion in 2023 to over $23 billion by the end of 2024.
Tinubu warned that inaction would have led Nigeria to a financial abyss. 'The only alternative to the reforms our administration initiated was a fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging Naira, and an economy in a free-fall,' he said.
To avert such a scenario, the administration ended Ways and Means financing and repositioned the Nigerian National Petroleum Company (NNPC) as a net contributor to the Federation Account through local refining and subsidy removal.
Acknowledging the hardship triggered by inflation, Tinubu noted that food prices, particularly rice, had begun to decline, signalling relief.
He pointed to a recovering oil and gas sector – with rig counts up over 400% in 2025 compared to 2021 – and over $8 billion in new investments.
Other macroeconomic gains include a rise in real GDP growth (4.6% in Q4 2024), narrowing debt service-to-revenue ratios, and the elimination of opaque tax waivers in favour of targeted incentives for agriculture, manufacturing, and technology.
Tinubu touted the administration's tax reform drive, which lifted Nigeria's tax-to-GDP ratio from 10% to 13.5% in one year.
He said the new framework prioritises fairness and economic justice: 'Essential goods and services such as food, education, and healthcare now attract 0% VAT, while rent, public transportation, and renewable energy are fully exempted.'
A Tax Ombudsman will soon be introduced to protect small businesses and vulnerable taxpayers, while a new fiscal policy framework will guide responsible borrowing and disciplined spending.
The President highlighted investments in healthcare and education as pillars of his national development strategy. Over 1,000 primary health centres are being revitalised, with 5,500 more undergoing upgrades. He also announced that six cancer treatment centres are being established, with three already operational.
On education, Tinubu cited progress in infrastructure and the student loan scheme to support indigent students.
Social investments, skill development, and empowerment programmes have also expanded youth access to economic opportunities.
The President noted revitalisation in the solid minerals sector, driven by a shift from 'pit-to-port' extraction to value-added production.
He praised the National Agency for Science and Engineering Infrastructure (NASENI) for setting governance benchmarks and driving digital-first industrialisation, citing the launch of electric vehicle assembly lines and Africa's most advanced diagnostic kit factory.
Initiatives such as Innovate Naija, Irrigate Nigeria, and the NASCAV drone programme for female engineers are positioning young Nigerians at the forefront of national transformation, he said.
Turning to national security, Tinubu stressed that without safety, economic growth cannot be sustained.
'Every Nigerian deserves to live without fear,' he stated, affirming his administration's commitment to securing lives and property.
He credited improved interagency cooperation and intelligence operations for recent gains in the fight against banditry in the northwest, where previously abandoned farms are now back in use and highways safer.
'Our military, police, and intelligence agencies are committed to responding to emerging threats,' Tinubu said.
President Tinubu reiterated the government's commitment to food security, noting investments in mechanised farming, fertiliser supply, and thousands of tractors for farmers.
He also listed ongoing road infrastructure projects nationwide, including the Lagos-Calabar Coastal Highway, Second Niger Bridge access roads, and the Abuja-Kaduna-Zaria-Kano dual carriageway, among others.
In the energy sector, the administration is upgrading transmission infrastructure and expanding off-grid solar energy to power homes, schools, and businesses.
The President announced Nigeria's readiness to host the inaugural Motherland Festival, aimed at celebrating the nation's culture, creativity, and tourism potential. He said the event would attract global attention and affirm Nigeria's leadership role in Africa and its place as a global partner.
He also acknowledged the strategic importance of the Nigerian diaspora, highlighting policies such as the diaspora bond and non-resident BVN to facilitate greater participation in national development.
President Tinubu closed his address with a note of optimism, declaring, 'By the Grace of God, we are confident that the worst is behind us. The real impact of our governance objectives is beginning to take hold.'
He called on citizens to remain united, assuring them that the government is committed to a stronger, more inclusive Nigeria where prosperity is broadly shared and future generations can thrive.
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