In a televised address on Tuesday, President Bola Tinubu emphasized the critical state of Nigeria’s economy, asserting that it might have faced collapse if his administration had not implemented necessary reforms.
Speaking on the occasion of Nigeria’s Independence Day, Tinubu reflected on the challenges his government encountered upon taking office 16 months ago.
The President articulated that his administration was confronted with two stark choices: to pursue reforms aimed at progress and prosperity or to continue the status quo, which could lead to further economic decline.
“My administration took over the leadership of our country 16 months ago at a critical juncture. The economy faced many headwinds, and our physical security was highly impaired,” he stated.
He lamented that Nigeria found itself in a precarious position due to past mistakes and missed opportunities, urging Nigerians to ensure that these errors do not hinder the nation’s future progress. “We found ourselves at a dizzying crossroads, where we must choose between two paths: reform for progress and prosperity or carry on business-as-usual and collapse. We decided to reform our political economy and defence architecture.”
The President warned that without rectifying the fiscal misalignments contributing to the current economic downturn, the nation would confront an uncertain future fraught with serious consequences.
He assured the public that his government was making strides in reforming the economy to better serve the citizens sustainably.
“We inherited a reserve of over $33bn 16 months ago. Since then, we have paid back the inherited forex backlog of $7bn. We have cleared the ways and means debt of over N30tn. We have reduced the debt service ratio from 97 per cent to 68 per cent,” he detailed, highlighting the administration’s fiscal management achievements.
Despite these challenges, Tinubu noted the resilience of Nigeria’s foreign reserves, which currently stand at $37bn.
He reaffirmed that the government continues to meet its financial obligations and is progressing with fiscal policy reforms. “Thanks to the reforms, our country attracted foreign direct investments worth more than $30bn in the last year.”
To further stimulate economic growth, Tinubu announced that the Federal Executive Council had approved the Economic Stabilisation Bills, which will soon be forwarded to the National Assembly. “These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law,” he added, underscoring his administration’s commitment to revitalizing Nigeria’s economy and securing a prosperous future for its citizens.
