Nigerian Government Says It Inherited a Dead Economy
Following the publication of a New York Times feature story titled “Nigeria Confronts Its Worst Economic Crisis in a Generation” by Ruth Maclean and Ismail Auwal, which highlighted severe economic issues such as soaring inflation and a plummeting national currency, the Tinubu administration countered the article on Sunday. They stated that President Tinubu inherited a dead economy but is committed to resolving the country’s economic crisis.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, criticised the article as reductionist and derogatory, claiming it failed to mention the positive aspects and amelioration policies.
Inherited Economic Woes
Onanuga defended Tinubu, stating that he did not create the current economic problems but inherited them. He argued that the economy was already in a dire state, requiring urgent interventions such as ending the fuel subsidy regime and unifying exchange rates. The Nigerian National Petroleum Corporation (NNPC) had accumulated significant debts from subsidy payments, leaving no provision for subsidies in the budget beyond June 2023.
Policy Decisions and Economic Reforms
To address critical issues in public finance, Tinubu’s administration made tough policy decisions, including eliminating the fuel subsidy and curbing exchange rate subsidies. Consequently, these measures aimed to stabilise the economy, which had been burdened by massive borrowing and unsustainable subsidy payments.
Signs of Economic Recovery
Onanuga highlighted early signs of recovery, noting the naira’s exchange rate stabilising and a trade surplus recorded in Q1 2024. Furthermore, he pointed out that international confidence in Nigeria’s economy is returning, as evidenced by new investments and loans from institutions like the World Bank and AfDB.
Efforts to Curb Inflation
The administration is working to increase food production and reduce costs. Initiatives include incentives for dry-season farming and significant investments in agriculture. State governments are also establishing retail shops to offer lower-priced food items, aiming to tame inflation and alleviate the cost of living crisis.
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