The presidency has stated that Nigeria was destined for hardship before President Bola Tinubu assumed power on May 29, 2023, and highlighted that the administration is already taking measures to address the challenges brought about by bold reforms in various sectors of the economy. The president’s special adviser on information and strategy, Mr. Onanuga, emphasized that the economic problems were not solely caused by new policies but were influenced by prevailing conditions before Tinubu’s tenure.
According to Mr. Onanuga, the budget deficit as of June 2023 was N10.8 trillion, and the actual debt service was 98.95% of revenue, significantly higher than the projected 59.37%. He noted that Nigeria faced challenges such as a dwindling foreign reserve, and JP Morgan’s report claimed the net foreign reserve was just about $3.7 billion, contrary to the $33 billion plus claimed by the Central Bank of Nigeria.
Mr. Onanuga acknowledged that the removal of the fuel subsidy and the move to merge foreign exchange rates were headline reforms introduced by the Tinubu administration since late May. He stated that proactive measures would continue to be taken, and the president was focused on turning the economy around for growth, development, and prosperity.
The presidential aide cited the third-quarter report for 2023, which indicated that GDP grew by 2.54%, and highlighted growth in various sectors such as the service sector, construction, real estate, metal ores, coal mining, chemical and pharmaceutical products, cement, and agriculture.
While acknowledging challenges like high fuel prices and Naira depreciation, Mr. Onanuga emphasized that the president is committed to addressing economic issues and promoting growth. He pointed out positive indicators in trade volume, trade surplus, and increased oil production contributing to a trade surplus of N1.89 trillion in Q3.
