A chieftain of the All Progressives Congress (APC) in Osun, Olatunbosun Oyintiloye, says the economic reforms introduced by President Bola Tinubu since May 2023 have reshaped Nigeria’s economic direction.
Oyintiloye said the policies had recorded gains in some key areas, but continued to exert pressure on household welfare, purchasing power and the cost of living.
The APC chieftain said this while speaking with newsmen ahead of Nigeria’s 66th Independence Anniversary on Wednesday in Osogbo.
Oyintiloye said that as Nigeria marks the anniversary, a fair assessment of the economy requires comparing the situation inherited in 2023 with developments under the Tinubu administration’s reform programmes.
He said the administration inherited an economy facing foreign exchange shortages, weak crude oil production, the financial burden of petrol subsidy, low government revenue, heavy debt-service obligations, infrastructure deficits and widespread poverty.
According to him, the removal of petrol subsidy and reforms in the foreign exchange market represented major policy shifts, complemented by efforts to strengthen revenue mobilisation, investment and production.
Oyintiloye said social intervention programmes had also provided support to vulnerable Nigerians, with the Federal Government reporting substantial disbursements to millions of households.
He, however, said such interventions must remain transparent, targeted and measurable to ensure that assistance translated into meaningful improvements in household welfare.
‘Subsidy removal addressed a major fiscal burden but also triggered significant adjustment costs, with higher petrol prices affecting transportation, food distribution, production and household expenditure.
‘Similarly, foreign exchange reforms sought to reduce distortions associated with multiple exchange-rate windows, but the subsequent naira depreciation increased the cost of imports, machinery, medicines and industrial inputs,’ he said.
Oyintiloye, a former lawmaker, said the reforms had been credited with improving the country’s trade balance, unifying the exchange-rate system and rebuilding foreign exchange reserves, among others.
He added that efforts to boost oil and gas production, improve the investment climate, address inflationary pressures and strengthen public financial management were also important components of the reform agenda.
Oyintiloye said available figures presented a mixed but important economic picture, with improvements reported in inflation, external reserves and real GDP growth, even as the naira exchange rate and cost of living remained major concerns.
He said Nigeria’s economic situation since May 2023 could therefore be described as one characterised by major policy changes and gains in several macroeconomic areas, alongside continuing pressures on household welfare.
‘The ultimate test of reform is what it does to production, jobs, investment, household income and the standard of living.
‘Nigeria needs to move from stabilisation to stronger productivity and broad-based prosperity.
‘We acknowledge the hardship Nigerians are experiencing, but returning to the old system without addressing its fundamental problems would only postpone the crisis.
‘The answer is to ensure that the resources freed from subsidy are converted into tangible benefits for the people, and the Tinubu administration has been doing that,’ he said.
Oyintiloye appealed to Nigerians to be patient with the reforms, saying their full benefits would become clearer as the policies matured.