The Presidency has responded to a recent report by the New York Times on Nigeria’s economic situation, stating that President Bola Tinubu inherited a struggling economy when he took office on May 29, 2023. In a statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency justified the policy decisions taken by the Tinubu administration, including the floating of the naira and fuel subsidy removal, as necessary to address the economic challenges facing the country.
According to the Presidency, Nigeria’s economy was in a dire state when Tinubu took over, with a huge infrastructural deficit and a fuel subsidy regime that had drained $84.39 billion from the public treasury between 2005 and 2022. The government had to take swift action to prevent a complete economic collapse, including unifying the multiple exchange rates and removing fuel subsidies.
While acknowledging that the exchange rate had reached an all-time low, the Presidency stated that stability was being restored, with the naira regaining some value and prospects of appreciating further by the end of the year. The economy had also recorded a trade surplus of N6.52 trillion in Q1, and portfolio investors were returning to the country.
The government was working to address food inflation, which remained a significant challenge, by increasing agricultural production and providing incentives to farmers. The Presidency noted that Nigeria was not the only country facing a rising cost of living crisis, citing the USA and Europe as examples, and expressed confidence that the country would overcome its present difficulties soon.
In a clear rebuke to the New York Times report, the Presidency stated that the report was “jaundiced” and “reductionist” in its portrayal of Nigeria’s economic situation, failing to mention the positive aspects of the economy and the ameliorative policies being implemented by the government.
The full statement by the Presidency is available on the official website of the State House.