By Daniel Otera
President Bola Tinubu has declared that Nigeria’s most difficult period is over and that the reforms implemented by his administration over the past two years are already yielding measurable economic gains. Addressing the nation on the second anniversary of his presidency, Tinubu credited what he called “bold but necessary choices” for stabilising Nigeria’s public finances and setting the country on a more sustainable growth path.
“When we embarked on this journey, propelled by a burst of hope and abiding faith in Nigeria’s unity and progress, I made a pledge before God and fellow countrymen and women to confront Nigeria’s challenges head-on,” Tinubu said in a nationwide broadcast. “Today, I proudly affirm that our economic reforms are working.”
Elected on 29 May 2023, President Tinubu inherited an economy weighed down by high inflation, dwindling foreign reserves, debt repayment concerns and an unsustainable fuel subsidy regime. Within weeks of assuming office, he ended the decades-old subsidy on petrol and unified the country’s multiple exchange rates two moves that, while hailed as necessary by fiscal experts, sent shockwaves across households and businesses.
Tinubu described the scrapped subsidy and the liberalised forex market as unavoidable interventions to avoid what he called a “fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging Naira, and an economy in free-fall.”
Although the reforms triggered immediate hardships, fuel prices tripled, the naira depreciated sharply, and inflation soared above 30% the President maintained that they were necessary to pull the economy “back from the precipice.”
Tinubu provided new data to argue that Nigeria’s economy has begun to recover. The country’s fiscal deficit, he said, has dropped from 5.4 per cent of GDP in 2023 to 3.0 per cent in 2024. First-quarter revenue in 2025 surpassed ₦6 trillion, aided by improved oil output, a rebound in tax collection, and what he called “greater transparency and discipline.”
He noted that the debt service-to-revenue ratio has declined from nearly 100 per cent in 2022 to below 40 per cent in 2024. Nigeria’s external reserves, which had dwindled to around $4 billion by mid-2023, now stand at over $23 billion, a jump of nearly 500 per cent. He also confirmed that all International Monetary Fund (IMF) obligations have been cleared.
“We have halted Ways and Means borrowing and ensured that the Nigerian National Petroleum Company is now a net contributor to the Federation Account,” Tinubu said.
In the oil and gas sector, rig activity has quadrupled since 2021, with new investments exceeding $8 billion, according to the President.
“These gains have stabilised the economy, leaving it better placed for future growth and more resilient to external shocks,” he stated.
To cushion the impact of economic adjustment on citizens, Tinubu announced new tax relief measures targeted at small businesses and households. Essential goods and services including food, education, healthcare, public transport, rent, and renewable energy are now subject to zero or no VAT.
See also: FULL TEXT: President Tinubu’s second-year anniversary speech
He also unveiled the creation of a Tax Ombudsman, an independent office tasked with protecting vulnerable taxpayers and ensuring fairness in the tax system.
“Our commitment is not only to reposition Nigeria for today but for generations to come,” Tinubu declared. “We are creating a system where prosperity is shared, and no one is left behind.”
The administration claims the country’s tax-to-GDP ratio has risen from 10 percent to 13.5 percent within a year, an improvement attributed to broader tax reforms and better compliance.
According to Tinubu, reforms have boosted state-level revenues by over ₦6 trillion in two years, enabling governors to settle salary arrears, pay pensions, and invest in local infrastructure. He said hundreds of roads among them the Lagos–Calabar Coastal Highway and the Abuja–Kaduna–Zaria–Kano dual carriageway are under construction or rehabilitation.
In the health sector, over 1,000 primary healthcare centres have been refurbished, with an additional 5,500 undergoing upgrades. Three of six planned cancer treatment centres are complete.
The President noted that free dialysis services have been introduced in some tertiary hospitals, and more than 4,000 women have accessed no-cost caesarean sections. National health insurance coverage has expanded from 16 million to 20 million Nigerians since 2023.
In education, the President cited the rollout of a student loan scheme for indigent learners, expanded access to higher education, and an upgrade of digital and vocational infrastructure.
At NASENI, he said, projects like Innovate Naija and Irrigate Nigeria are supporting job creation. New factories are producing electric vehicles and diagnostic kits, and a renewable-energy park in Gora is in development.
Tinubu also highlighted support for MSMEs through improved funding mechanisms and a more accommodating tax regime for digital and remote work.
On national security, Tinubu said inter-agency coordination had improved, with better welfare motivating security personnel. He noted recent gains in the northwest, including the recovery of territories from bandits and the rescue of kidnapped victims.
He also announced major agriculture and food security initiatives, including mass tractor distribution and expanded fertiliser supply to farmers, aimed at improving yields and stabilising prices.
“The prices of rice and other basic food items are beginning to decline,” he said, acknowledging that cost-of-living pressures remain.
Tinubu concluded his address with an invitation to the Nigerian diaspora to participate in the country’s transformation, mentioning new financial instruments such as diaspora bonds and the non-resident Bank Verification Number (BVN) framework.
“By the Grace of God, we are confident that the worst is behind us,” he said. “The real impact of our governance objectives is beginning to take hold.”
He expressed confidence that Nigeria is on the right track. “The future is bright, and together, we will build a stronger, more inclusive Nigeria that we can all be proud of.”
