As Nigeria marks its 66th Independence Anniversary, a chieftain of the All Progressives Congress (APC) in Osun, Olatunbosun Oyintiloye, has stated that President Bola Tinubu's economic reforms have reshaped the country's economic direction. Oyintiloye noted that the policies have recorded gains in some key areas but continue to exert pressure on household welfare, purchasing power, and the cost of living.
Oyintiloye said that a fair assessment of the economy requires comparing the situation inherited in 2023 with developments under the Tinubu administration's reform programmes. He stated that the administration inherited an economy facing foreign exchange shortages, weak crude oil production, the financial burden of petrol subsidy, low government revenue, heavy debt-service obligations, infrastructure deficits, and widespread poverty.
According to Oyintiloye, the removal of petrol subsidy and reforms in the foreign exchange market represented major policy shifts, complemented by efforts to strengthen revenue mobilisation, investment, and production. He added that social intervention programmes have also provided support to vulnerable Nigerians, with the Federal Government reporting substantial disbursements to millions of households.
However, Oyintiloye noted that such interventions must remain transparent, targeted, and measurable to ensure that assistance translates into meaningful improvements in household welfare. He said subsidy removal addressed a major fiscal burden but also triggered significant adjustment costs, with higher petrol prices affecting transportation, food distribution, production, and household expenditure.
Oyintiloye, a former lawmaker, said the reforms have been credited with improving the country's trade balance, unifying the exchange-rate system, and rebuilding foreign exchange reserves, among others. He added that efforts to boost oil and gas production, improve the investment climate, address inflationary pressures, and strengthen public financial management are also important components of the reform agenda.
Available figures, according to Oyintiloye, present a mixed but important economic picture, with improvements reported in inflation, external reserves, and real GDP growth, even as the naira exchange rate and cost of living remain major concerns. He said Nigeria's economic situation since May 2023 could therefore be described as one characterised by major policy changes and gains in several macroeconomic areas, alongside continuing pressures on household welfare.
Oyintiloye appealed to Nigerians to be patient with the reforms, saying their full benefits would become clearer as the policies matured. He emphasised that the ultimate test of reform is what it does to production, jobs, investment, household income, and the standard of living.
Key points
- The reforms have recorded gains in some key areas, but continue to exert pressure on household welfare, purchasing power, and the cost of living.
- The administration inherited an economy facing foreign exchange shortages, weak crude oil production, and widespread poverty.
- Oyintiloye appealed to Nigerians to be patient with the reforms, saying their full benefits would become clearer as the policies matured.
