The Presidency has responded to recent criticisms from the Yoruba socio-political group, Afenifere, over the economic situation in the country, insisting that the economic reforms being implemented under President Bola Ahmed Tinubu’s administration, though painful, are necessary to reset and rebuild Nigeria’s economy for long-term prosperity.
Afenifere Raises Concern Over Economic Hardship
A few days ago, Afenifere expressed grave concern over the rising cost of living, food inflation, and the general economic hardship being faced by ordinary Nigerians. The group questioned the rationale behind some of the policies of the current administration, particularly the removal of fuel subsidy and the unification of the foreign exchange rate, which they believe have worsened the economic situation for many families.
In a strongly worded statement, Afenifere called on President Tinubu to urgently review the direction of his economic policies and to prioritize the welfare of the masses, especially given the increasing poverty rate and dwindling purchasing power of Nigerians.
Presidency Defends Economic Decisions
Reacting to the concerns, the Presidency released an official response acknowledging the tough times being experienced by citizens but defending the administration’s policies as necessary steps to save the economy from total collapse.
According to the Special Adviser to the President on Media and Publicity, the Tinubu-led government inherited a fragile economy burdened with unsustainable debt, high inflation, fuel subsidy distortions, and forex crises. He noted that continuing with the previous system would have only worsened Nigeria’s financial instability.
“President Tinubu did not come into office to make popular decisions; he came to make the right decisions. These reforms are tough, but they are what Nigeria needs to grow. For too long, we’ve operated an economy based on consumption, heavy borrowing, and subsidy dependence. That model has failed us,” the statement read.
Why the Reforms Are Necessary
The Presidency highlighted key policies that have shaped the current economic landscape, including:
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Fuel Subsidy Removal: The government argues that fuel subsidies were draining over ₦4 trillion annually from the nation’s finances, benefiting a few while placing an enormous burden on public funds. Removing the subsidy is expected to free up funds for investment in critical sectors like education, health, infrastructure, and transportation.
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Forex Unification: Before the reform, Nigeria operated multiple exchange rates, creating arbitrage opportunities that enriched a few elites at the expense of the economy. The unification of the naira exchange rate, though contributing to temporary volatility, is intended to bring more transparency and investor confidence into the forex market.
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Revenue Diversification: The Tinubu administration is focusing on increasing non-oil revenue and strengthening local production to reduce Nigeria’s dependency on imports. The government believes this is the only way to build a resilient and self-sustaining economy.
Palliatives and Interventions
To cushion the effects of these policies, the Presidency reminded Nigerians of various intervention programs rolled out under the Tinubu administration. These include:
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₦75 billion fund for manufacturers and MSMEs.
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₦50,000 conditional cash transfers to millions of vulnerable households.
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Mass transit projects to ease transportation burdens.
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Agricultural support programs to improve food security and reduce prices.
Despite these efforts, critics argue that the relief measures have not reached all intended beneficiaries and that more needs to be done to ensure effective distribution and impact.
Patience Urged, Long-Term Gains Promised
While acknowledging the current suffering of many Nigerians, the Presidency appealed for patience and trust in the process, reiterating that these short-term sacrifices will yield long-term benefits. It noted that economic reform is never painless, citing examples from countries like Egypt and India that went through similar phases of adjustment before achieving stability.
“We understand that Nigerians are going through a lot. President Tinubu hears them, sees them, and is working daily to ease the pain. However, we cannot return to policies that brought us to this point. We must endure this phase to enjoy a better future,” the statement concluded.
Mixed Reactions Continue
The debate over the effectiveness of the economic reforms continues to stir reactions across political, economic, and civil society circles. While some economists and international observers have praised the administration’s boldness in confronting Nigeria’s structural challenges, others argue that the speed and lack of adequate safety nets have worsened poverty levels.
As Nigeria navigates this critical moment in its economic history, all eyes remain on how the Tinubu administration will balance reform implementation with social stability — ensuring that no Nigerian is left behind in the quest for national recovery and prosperity.
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