The Tinubu government is addressing the economic crisis, as stated by the Presidency in a response to the New York Times.

The Tinubu government is addressing the economic crisis, as stated by the Presidency in a response to the New York Times.

Onanuga emphasized the need for the government to address misconceptions about President Bola Tinubu’s economic policies due to the’misleading’ slant of the report.

He noted that the report painted a dire picture of some Nigerians’ experiences amid the inflationary spiral of the last year and unfairly blamed it all on the new administration’s policies.

He argued that the report, based on several interviews, is at best jaundiced, portraying all gloom and doom without mentioning the positive aspects of the economy or the amelioration policies being implemented by the central and state governments.

Onanuga emphasized that Tinubu did not create the economic problems Nigeria faces today but inherited them

Nigeria’s economy is in dire need of urgent intervention, as highlighted by an economist. The government’s policy direction in May/June 2023 included the abrogation of the fuel subsidy regime and the unification of multiple exchange rates. The fuel subsidy regime consumed $84.39 billion between 2005 and 2022.

The Nigerian government subsidized the exchange rate, spending $1.5 billion monthly to defend the currency against the dollar’s demand. This led to arbitrage and failed remittance obligations, affecting foreign direct investment and oil sector investments. Despite initial challenges, stability is being restored with the exchange rate below N1500

Nigeria’s economic confidence is improving, with a trade surplus of N6.52 trillion in Q1 and renewed investor interest. Loans from the World Bank, AfDB, and Afreximbank contribute to renewed bankability.

Be the first to comment

Leave a Reply

Your email address will not be published.


*