President Bola Ahmed Tinubu on Wednesday said his administration’s economic reforms are beginning to yield results, citing a drop in the price of rice and other staples as evidence of easing inflation.
In a nationwide address marking the second anniversary of his administration, Tinubu stated, “Despite the bump in the cost of living, we have made undeniable progress. Inflation has begun to ease, with rice prices and other staples declining.”
In March this year, the News Agency of Nigeria (NAN) in a survey revealed a fall in the prices of rice across markets at the seat of power, the Federal Capital Territory (FCT), and its findings. However, the fall is a far cry from when a 50-kg bag of rice was sold at an average price of about N8,500 in 2015, N26,000 in 2020 and by November 2021, N32,000. As of December 2023, a 50-kg bag of rice sold at an average of N47,000, but 2024 closed with the same bag selling for between N95 and N105,000.
According to NAN, at Kado market, a 50kg bag of rice, which sold between N97,000 and N100,000 in January, was now being sold for N87,000, while a 25kg bag formally sold between N45,000 and N50,000, was now being sold for N43,500, depending on the brand.
In Garki market located at the city centre, a bag of 50 kg rice was now being sold for between N81,000 to N83,000 as against N92,000 in January, while a 25kg bag now sells for between N42,000 and N43,000 as against N45,000 sold in January.
In Nyanya market, located in the satellite town, a 50 kg bag of rice formerly sold between N90,000 and N93,000 in January, was now being sold for between N70,000 and N83,000, depending on the brand.
The President said the country had to undergo painful but necessary reforms to prevent fiscal collapse.
He pointed to the removal of fuel subsidies and the unification of the foreign exchange market as early steps taken to stop Nigeria from, in his words, “drifting into the precipice.”
“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.
“The two were no longer sustainable and had become a chokehold on our nation’s neck, strangling our nation’s future.”
President Tinubu acknowledged the hardship experienced by Nigerians due to the reforms, but argued that they were essential to avert a deeper crisis. “We do not take your patience for granted,” he said. “The only alternative to the reforms 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 economic indicators now point to a gradual recovery. According to the President, oil and gas rig counts in 2025 are up by over 400% compared to 2021, and more than \$8 billion in new investments have been committed in the sector.
Fiscal policy adjustments, Tinubu said, have reduced the federal deficit from 5.4% of GDP in 2023 to 3.0% in 2024. He credited improved revenue collection and greater transparency for the turnaround. “In the first quarter of this year, we recorded over N6 trillion in revenue,” he added.
The President also noted that the discontinuation of Ways & Means financing had contributed to taming inflation, while the Nigerian National Petroleum Company (NNPC), now free of subsidy burdens, has become a net contributor to the Federation Account.
Foreign reserves, he said, rose from \$4 billion in 2023 to over \$23 billion by the end of 2024, and the country’s debt service-to-revenue ratio dropped from nearly 100% in 2022 to under 40% by 2024.
In addition to macroeconomic gains, Tinubu outlined reforms in taxation, designed to promote fairness and support low-income households. He said essential goods and services, including food, education, and healthcare, would now attract zero per cent VAT, with rent, public transportation, and renewable energy also exempted.
“These reforms are designed to reduce the cost of living, promote economic justice, and build a business-friendly economy that attracts investment and supports every Nigerian,” Tinubu said.
Reaffirming his commitment to economic stability, the President stated, “Today, I proudly affirm that our economic reforms are working. We are on course to building a greater, more economically stable nation.”
Tinubu closed his address by thanking Nigerians for their resilience and support. *“Our journey is not over, but our direction is clear,” he said. “The real impact of our governance objectives is beginning to take hold.”
