…Says President “took the bullets” for difficult but necessary economic reforms

The Presidency on Thursday defended the economic reforms introduced by President Bola Ahmed Tinubu, insisting that the administration’s policies rescued Nigeria from looming fiscal collapse and placed the country on a sustainable path of growth and development.

Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, said despite criticisms and sustained opposition attacks, the Tinubu administration had achieved significant milestones within three years in office through difficult but necessary reforms.

In a lengthy defence of the administration’s record, Onanuga said President Tinubu “took the bullets” required to stabilise the country’s economy and restore confidence in governance.

According to him, the administration inherited a troubled economy in May 2023, characterised by acute fuel scarcity, unsustainable fuel subsidy payments, multiple exchange rates, crippling debt-service obligations and widespread fiscal distress across states.

He noted that many states struggled to pay salaries and pensions before the current administration introduced reforms that increased allocations to subnational governments.

“States that hitherto were unable to pay salaries by May 2023, with months of unpaid obligations to workers and pensioners, are now doing so with ease and embarking on major infrastructure projects,” he said.

Onanuga attributed the improved financial standing of states to the administration’s removal of fuel subsidy, exchange rate reforms and restructuring of federation finances.

He added that governors across party lines had acknowledged the impact of increased allocations on development projects in their states.

The presidential aide said Tinubu acted swiftly upon assumption of office by removing fuel subsidy and liberalising the foreign exchange market, describing both policies as bold decisions that previous administrations avoided.

He said although the reforms initially triggered inflationary pressures and economic hardship, the government remained committed to its long-term economic agenda.

“If not sure of the salience of his reforms, President Tinubu would have reversed the policies in the face of criticism and opposition attacks. Instead, he persisted,” Onanuga stated.

He argued that the gains of the reforms had become increasingly evident in the economy, citing the performance of the Nigerian stock market, improved investor confidence and renewed foreign investments.

According to him, the Nigerian Exchange All-Share Index rose from about 53,000 points in May 2023 to over 250,000 points, while market capitalisation increased from N30 trillion to about N160 trillion.

He also pointed to ongoing infrastructure projects across the country, including the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Super Highway, describing them as some of the most ambitious road projects undertaken since independence.

Onanuga said the administration was equally investing heavily in rail transportation, with projects such as the Kaduna-Kano-Maradi rail line and new city rail systems in Lagos, Kaduna, Kano and Enugu.

On the oil and gas sector, he said the government’s reforms had attracted fresh investments and improved energy security through initiatives such as domestic refining and the naira-for-crude policy.

The presidential spokesman further defended the administration’s handling of the power sector, saying the Federal Government had focused on addressing structural constraints limiting electricity distribution.

He said the government had strengthened the national grid, supported metering programmes and moved to settle legacy debts owed to power generation companies.

According to him, more than 2.5 million electricity meters had been distributed under the administration’s metering initiative.

Onanuga also highlighted social intervention programmes such as the Nigerian Education Loan Fund (NELFUND) and CREDICORP, saying both initiatives had expanded access to tertiary education and consumer credit.

He disclosed that about 1.6 million students had benefited from NELFUND, while the administration had also succeeded in reducing disruptions in public tertiary institutions through engagement with university unions.

The presidential aide acknowledged that insecurity remained a major challenge but maintained that the government was intensifying efforts to combat terrorism, banditry and kidnapping.

He said the armed forces and security agencies were receiving increased support and equipment to prosecute the fight against criminal groups.

“With support from friendly countries such as the United States, France and the United Kingdom, there is hope that the menace of kidnappers and terrorists will become history,” he said.

Onanuga maintained that history would remember the Tinubu administration for undertaking difficult reforms and major infrastructure projects aimed at repositioning Nigeria’s economy for long-term prosperity.