The response from the Presidency to the report published in the New York Times criticizing the Nigerian economy has been swift and strong.
According to Bayo Onanuga, the Special Adviser to the President on Information and Strategy, the report reflects the biased and derogatory way in which foreign media portrays African countries.
Onanuga emphasized that the current economic challenges faced by Nigeria cannot be solely attributed to the policies of the new administration.
He clarifies that the economic problems were inherited by President Bola Tinubu, who took over a struggling economy on the brink of collapse.
Onanuga cited the need for immediate action to prevent Nigeria from experiencing a similar fate as Zimbabwe and Venezuela. As part of the government’s policy direction, fuel subsidies were abolished and exchange rates were unified to address the financial burden on the country.
Onanuga highlighted the significant financial drain caused by the fuel subsidy regime, which consumed billions of dollars over the years.
Additionally, the state oil firm accumulated trillions of Naira in debt due to unsustainable subsidy payments.
The budget itself was heavily burdened by debt servicing, leaving little room for other expenditures. The government also faced challenges in managing the exchange rate and fulfilling its financial obligations to foreign entities.
To address these issues, Tinubu’s administration made tough decisions, including the removal of fuel subsidies and the floating of the naira. Although the initial impact was tumultuous, stability is gradually being restored.
Onanuga Stated,”The exchange rate has improved, and there are hopes for further appreciation of the naira in the near future. The economy has shown signs of improvement, with a trade surplus recorded in the first quarter and increased investor confidence.”
“The implementation of these reforms has garnered international support, with loans from institutions such as the World Bank, AfDB, and Afreximbank. Nigeria is once again seen as a viable investment destination.
The ongoing reforms have instilled confidence in the economy, paving the way for a brighter future.” He Said.
