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BREAKING: Tinubu inherited dead economy – Presidency replies New York Times
The Presidency has reacted to a report published in the New York Times criticising the Nigerian economy as facing the worst trajectory in a generation.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday reacted to the report credited to Ruth Maclean and Ismail Auwal’s.
According to the Presidency, the feature story with the title, ‘Nigeria Confronts Its Worst Economic Crisis in a Generation’, published on June 11, reflected the typical predetermined, reductionist, derogatory and denigrating way foreign media establishments reported African countries for several decades.
The Special Adviser on Information and Strategy said because of the ‘misleading’ slant of the report, the government needed to clear up some misconceptions conveyed by the reporters as regards the economic policies of the President Bola Tinubu administration that came into power at the end of May 2023.
He said one significant aspect of the report was that it painted the dire experiences of some Nigerians amid the inflationary spiral of the last year and blamed it all on the policies of the new administration.
He also said the report, based on several interviews, is at best jaundiced, all gloom and doom, as it never mentioned the positive aspects in the same economy as well as the ameliorative policies being implemented by the central and state governments.
Onanuga went on to say that Tinubu did not create the economic problems Nigeria faces today.
According to the presidential aide, Tinubu inherited them.
“As a respected economist in our country once put it, Tinubu inherited a dead economy. The economy was bleeding and needed quick surgery to avoid being plunged into the abyss, as happened in Zimbabwe and Venezuela,” he noted.
Onanuga said this was the background to the policy direction taken by the government in May/June 2023: the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.
According to the presidential aide, for decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens.
Onanuga also alleged that the state oil firm, NNPCL, the sole importer, had amassed trillions of Naira in debts for absorbing the unsustainable subsidy payments in its books.
He said by the time Tinubu took over the leadership of the country, there was no provision made for fuel subsidy payments in the national budget beyond June 2023.
“The budget itself had a striking feature: it planned to spend 97 percent of revenue servicing debt, with little left for recurrent or capital expenditure. The previous government had resorted to massive borrowing to cover such costs. Like oil, the exchange rate was also being subsidized by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy.
“By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 BDCs that were previously licensed by the Central Bank. What was more, the country was failing to fulfil its remittance obligations to airlines and other foreign businesses, such that FDIs and investment in the oil sector dried up, and notably Emirate Airlines cut off the Nigerian route,” he said.
Onanuga said to deal with the cancer of public finance, Tinubu on his first day rolled back the subsidy regime and the generosity that spread to neighbouring countries. Then, his administration floated the naira.
He said, “After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored, though there remain some challenges. The exchange rate is now below N1500 to the dollar, and there are prospects that the naira could regain its muscle and appreciate to between N1000 and N1200 before the end of the year.
“The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.
“The inflationary rate is slowing down, as shown in the figures released by the National Bureau of Statistics for April. Food inflation remains the biggest challenge, and the government is working very hard to rein it in with increased agricultural production.
“The Tinubu administration and the 36 states are working assiduously to produce food in abundance to reduce the cost. Some state governments, such as Lagos and Akwa Ibom, have set up retail shops to sell raw food items to residents at a lower price than the market price.
“The Tinubu government, in November last year, in consonance with its food emergency declaration, invested heavily in dry-season farming, giving farmers incentives to produce wheat, maize, and rice. The CBN has donated N100 billion worth of fertiliser to farmers, and numerous incentives are being implemented. In the western part of Nigeria, the six governors have announced plans to invest massively in agriculture.
“With all the plans being executed, inflation, especially food inflation, will soon be tamed.
“Nigeria is not the only country in the world facing a rising cost of living crisis. The USA, too, is contending with a similar crisis, with families finding it hard to make ends meet. US Treasury Secretary Janet Yellen raised this concern recently. Europe is similarly in the throes of a cost-of-living crisis. As those countries are trying to confront the problem, the Tinubu administration is also working hard to overturn the economic problems in Nigeria.
“Our country faced economic difficulties in the past, an experience that has been captured in folk songs. Just like we overcame then, we shall overcome our present difficulties very soon.”
President Bola Tinubu says Nigeria must develop and stand beyond religious bigotry.
The president spoke in Abuja on Friday when he received a delegation from the Catholic Bishop’s Conference of Nigeria (CBCN) at the State House, led by Lucius Ugorji, the conference president.
Tinubu acknowledged the hardships faced by Nigerians due to ongoing economic reforms, stating that the measures implemented were necessary to build a resilient nation and secure a better future for generations to come.
“Yes, removing the fuel subsidy was hard, tough for me, but it’s a hard choice that Nigeria must face. We are not going to bankrupt our country,” Tinubu said.
We were spending the investment of the future of our children yet unborn; we were spending their rights. Poverty has no religious basis. It affects all, and we must fight it together.”
Tinubu added that poverty transcends religious and ethnic divides, urging citizens and leaders to unite in addressing the issue.
He said tax reforms are an opportunity for Nigerians to invest in the nation’s development.
On the issue of insecurity, the president assured the bishops that security agencies are making significant progress in tackling the nation’s challenges.
He said the impact of insecurity is felt by all, regardless of religious affiliation, and reiterated his commitment to religious tolerance.
“This insecurity affects everyone—Christians and Muslims alike. I have no religious bias; I won’t be a bigot. My wife is a pastor at the Redeemed Christian Church,” Tinubu said.
“But we have to think of our country; this country must develop and must stand beyond religious bigotry.
The president thanked religious leaders for their prayers, noting that the country is already witnessing a better deal and a newfound optimism.
He highlighted the competition among operators in the petroleum sector, the bountiful harvest enjoyed by farmers, and the lower prices of commodities, adding that investments are flowing into the country.
“There is hope; people are coming in to invest. They are saying good things about Nigeria. I am very proud of that,” he said.
“What seems to be a very difficult beginning is now showing us hope. And we are not half-time yet. I’m happy to see this period alive and healthy, and I am thankful to all of you for your prayers.”
President Donald Trump of the United States is considering issuing sweeping travel restrictions for the citizens of dozens of countries as part of a new ban.
According to an internal memo regarding the move, a total of 41 countries divided into three separate groups would be affected.
The first group of 10 countries, including Afghanistan, Iran, Syria, Cuba and North Korea among others, would be set for a full visa suspension.
In the second group, five countries, including Eritrea, Haiti, Laos, Myanmar and South Sudan, would face partial suspensions that would impact tourist and student visas as well as other immigrant visas, with some exceptions.
According to the memo, in the third group, a total of 26 countries that includes Belarus, Pakistan and Turkmenistan among others would be considered for a partial suspension of US visa issuance if their governments do not make efforts to address deficiencies within 60 days.
The move harkens back to President Donald Trump’s first term ban on travelers from seven majority-Muslim nations, a policy that went through several iterations before it was upheld by the Supreme Court in 2018.
It could be recalled that Trump issued an executive order on January 20 immediately after his inauguration requiring intensified security vetting of any foreigners seeking admission to the US to detect national security threats.
That order mandated several cabinet members to submit by March 21 a list of countries from which travel should be partly or fully suspended because their vetting and screening information is so deficient.
The Oyo State Government is set to collaborate with the Kingdom of the Netherlands to enhance waste management and promote a circular economy, aiming for sustainable environmental practices.
The Commissioner for Environment and Natural Resources, Hon. Abdulmojeed Mogbonjubola, disclosed this during a high-level meeting between the ministry and representatives from the Dutch government.
According to the commissioner, discussions focused on innovative waste solutions, recycling, and environmental sustainability.
Hon. Mogbonjubola emphasized Governor Seyi Makinde’s commitment to transforming waste management in the state. He assured that the partnership would receive strong political support, ensuring smooth operations in Oyo State.
“We are ready to partner with the Netherlands government, but we need a clear roadmap on how the circular economy works. This is a new concept for us, just as we are new to the Netherlands platform. This marks the beginning of a new relationship, and we will do all necessary follow-ups,” he said.
To facilitate the initiative, the commissioner announced the formation of a Circular Economy Desk within the Ministry of Environment and Natural Resources. This committee will leverage expertise from existing institutions and develop strategies for implementation.
“I am excited this is happening during my tenure. We already have a platform, but we haven’t fully taken advantage of it. Now, Oyo State is ready to take the bull by the horns,” he added.
The Representative of the Consulate General of the Netherlands, Mr. Peter Kelley, highlighted the economic opportunities embedded in waste recycling.
He explained that the Dutch government has been involved in similar projects in Nigeria, such as a waste-to-energy facility in Lagos, textile recycling through Cope Clothing in the Loop, and training businesses on sustainable recycling practices.
Mr. Kelley acknowledged that while the circular economy is a relatively new concept, its success in the Netherlands proves it can work in Oyo State.
“As it works in the Netherlands, it will work here provided we engage all stakeholders, including the government, businesses, communities, and universities. The consulate general’s role is to facilitate this process,” he stated.
Earlier in his welcome address, the Permanent Secretary of the Ministry of Environment and Natural Resources, Dr. Sunday Ojelabi, expressed gratitude for the Netherlands’ interest in supporting Oyo State’s sustainability goals.
He emphasized that the circular business platform will benefit local entrepreneurs and improve environmental conditions.
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