The Nigerian presidency acknowledges that the country is destined for hardships, asserting that the challenges existed before President Bola Tinubu took office on May 29, 2023
According to the special adviser on information and strategy, Onanuga said the hardships were not solely caused by recent policy reforms but were a result of conditions predating Tinubu’s assumption of power on May 29, 2023.
The presidency anticipates delays in the implementation of Tinubu’s policies aimed at addressing economic issues. Despite the acknowledged difficulties, the government expresses its commitment to proactive measures, although the full impact on improving the situation for Nigerians may take some time to materialize.
As of June 2023, the budget deficit stood at N10.8 trillion, and the actual debt service was alarmingly high at 98.95% of revenue. Foreign reserves were in a dire state, with slow inflows and a failure to remit about $800 million in foreign airline funds. J.P. Morgan’s report exposed near insolvency, revealing a net foreign reserve of $3.7 billion, in contrast to the previously stated $33 billion by Emefiele’s CBN.
In response to the challenging economic landscape, President Tinubu promptly addressed the issues by eliminating the wasteful fuel subsidy, projected to consume about N7 trillion, five times the provision for capital spending. The presidency acknowledges the temporary pains caused by these reforms but emphasizes that proactive measures are being taken.
Key reforms, such as the removal of the fuel subsidy and the move to merge foreign exchange rates, are cited as pivotal changes introduced by the Tinubu administration. These reforms aim to tackle issues like high fuel prices and Naira depreciation, contributing to a general spike in the costs of goods and services.
Despite the economic challenges, the presidency anticipates positive developments in the New Year, pointing to the third-quarter GDP growth of 2.54%. The service sector played a significant role in this growth, with contributions from information and communication, financial and insurance services. Sectors like construction, real estate, metal ores, coal mining, chemical and pharmaceutical products, cement, and agriculture also experienced growth.
The presidential aide highlighted the oil sector’s improved performance, reporting a negative growth of 0.85%, a significant improvement from the negative 22.67% recorded in the same period the previous year. The enhanced security of oil infrastructure and operations contributed to increased production.
Trade volumes witnessed a substantial increase from N12.16 trillion to N18.8 trillion, with a trade surplus of N1.89 trillion in the third quarter. Exports also saw a surge, reaching N10.35 trillion, a 60.78% increase from the previous quarter.
The presidency remains optimistic, emphasizing President Tinubu’s commitment to turning the economy around for growth, development, and prosperity.
