Presidency: Nigeria’s Economic Outlook Improving Under President Tinubu’s Reforms

In a recent statement, the presidency addressed the challenges facing Nigeria, asserting that the nation was already destined for hardship before President Bola Tinubu assumed office on May 29, 2023. The President’s Special Adviser on Information and Strategy, Mr. Onanuga, highlighted the bold reforms initiated by President Tinubu to address economic issues across various sectors.

President Bola Tinubu

Onanuga revealed that as of June 2023, the budget deficit stood at N10.8 trillion, with actual debt service surpassing revenue projections. The state of affairs led to challenges such as the inability to remit about $800 million funds of foreign airlines. However, President Tinubu, committed to taking tough decisions, promptly addressed the economic problems by eliminating the wasteful fuel subsidy, projected to consume about N7 trillion.

While acknowledging the temporary pains caused by these reforms, Onanuga emphasized that proactive measures would continue to be taken. He highlighted upcoming reforms, including the removal of the fuel subsidy and the move to merge foreign exchange rates, expecting positive impacts in the New Year.

Onanuga cited the latest National Bureau of Statistics (NBS) report, indicating that Nigeria’s GDP grew by 2.54% in the third quarter of 2023, a positive turn compared to the previous year. The service sector played a significant role in this growth, contributing 52.7% to the aggregate GDP. Despite challenges in sectors like agriculture, improvements were noted in construction, real estate, metal ores, coal mining, chemical and pharmaceutical products, cement, and construction.

Notably, the oil sector reported a significant improvement, with negative growth reduced from 22.67% to 0.85%, attributed to enhanced security in oil infrastructure and operations. Trade volume experienced a substantial increase, reaching N18.8 trillion in the third quarter, along with a trade surplus of N1.89 trillion.

Onanuga concluded by stating that the value of exports in the third quarter was N10.35 trillion, a 60.78% increase from the previous quarter, with crude oil dominating exports at 82.5%. These positive indicators reflect President Tinubu’s commitment to steering the economy towards growth, development, and prosperity.