Tinubu: Nigeria chose “reform over ruin”

By Philippine Duru

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Bola Ahmed Tinubu on Friday marked his third anniversary in office with a forceful defense of his administration’s sweeping economic reforms, insisting the policies saved Nigeria from fiscal collapse despite the severe hardship faced by millions of citizens.

In a nationwide address commemorating three years in power, the president acknowledged the country’s lingering cost-of-living crisis but argued that difficult decisions taken since May 2023 had begun stabilizing Africa’s largest economy.

“Had we refused to act, our nation would have drifted toward fiscal breakdown, worsening poverty, and severe economic uncertainty,” Tinubu said. “Together, we chose reform over ruin and decisiveness over hesitation.”

The president said the removal of the petrol subsidy halted what he described as a daily drain of ₦18.4 billion from public finances, adding that the funds are now being redirected into infrastructure, healthcare and education projects nationwide.

Tinubu also defended the abolition of the multiple foreign exchange window system, saying it dismantled a corrupt structure that had cost the country more than ₦8 trillion in the three years before his administration took office.

The speech came days after the Central Bank of Nigeria retained the benchmark interest rate at 26.5% following its 305th Monetary Policy Committee meeting chaired by Governor Olayemi Cardoso.

Economic indicators presented by the administration suggest a gradual stabilization of the economy after months of volatility.

Headline inflation currently stands at 15.69%, significantly below the record highs recorded during the peak of the economic crisis, while core inflation slowed to 15.86%.

The naira has also regained some stability, trading between ₦1,375 and ₦1,420 against the US dollar across markets, compared with the sharp depreciation seen in 2024 when the currency crossed ₦1,800/$.

Nigeria’s external reserves have also strengthened, climbing toward the $50 billion mark, according to government figures.

The administration further highlighted progress in the banking sector, where 33 out of 36 commercial banks reportedly met the recapitalization targets set by the central bank. International banks were required to raise their minimum capital base to ₦500 billion, contributing to a more than 60% increase in sector-wide capital.

Despite improvements in macroeconomic indicators and investor confidence, many businesses continue to struggle under tight financial conditions.

The Nigerian Exchange has witnessed a historic rally since Tinubu assumed office, with the All-Share Index surging from about 53,000 points in 2023 to nearly 250,000 points, pushing market capitalization to approximately ₦160 trillion.

However, private sector operators say access to credit remains constrained after a ₦14.02 trillion contraction in lending, as commercial banks increasingly channel liquidity into high-yield government securities instead of business financing.

Manufacturers are also grappling with rising energy costs amid a 15.30% contraction in the power sector, forcing many firms to rely heavily on alternative energy sources.

The president pointed to ongoing infrastructure projects as evidence that reform dividends are beginning to emerge, noting that more than 2,700 kilometers of major highways and economic corridors are currently under construction or rehabilitation.

Tinubu also highlighted the expansion of the Nigerian Education Loan Fund, which he said has provided interest-free tuition support to over 450,000 indigent students.

As the administration enters the final stretch of its first term, analysts say the key challenge facing the government will be translating macroeconomic stability into lower food prices, improved purchasing power and stronger support for businesses and households.