President Bola Tinubu declared that his administration’s tough economic decisions, including the removal of fuel subsidies and the naira’s floatation, were essential to drive Nigeria’s long-term growth.
Speaking at a state banquet in Abuja honoring visiting Rwandan President Paul Kagame, Tinubu acknowledged the hardships caused by these policies, such as 32% inflation and petrol prices reaching ₦1,030 per liter, but argued they were critical to correct decades of fiscal mismanagement. He emphasized that the reforms, initiated in June 2023, have saved $5 billion annually in subsidy costs, redirecting funds to infrastructure and social programs.
Tinubu highlighted achievements like the $2.5 billion Lagos-Calabar Coastal Highway, set for completion in 2027, and a 20% increase in agricultural output in 2024, driven by subsidized inputs for 1.2 million farmers. He also noted the naira’s stabilization at ₦1,600 to $1, a 30% improvement from its 2023 low, though import costs remain high, affecting 60% of urban households. The president cited Nigeria’s 3.5% GDP growth projection for 2025, up from 2.9% in 2024, as evidence of progress, despite 63% of Nigerians living below the poverty line, per 2024 World Bank data.
Critics, including labor unions representing 7 million workers, argue the reforms have spiked living costs, with food inflation at 40%, forcing 25% of households to skip meals. Tinubu countered that his administration’s ₦70,000 minimum wage, effective January 2025, and $1 billion in student loans for 500,000 youths address these challenges.
He urged patience, projecting 1 million new jobs by 2026 through tech and manufacturing. The remarks reflect Tinubu’s balancing act between short-term pain and long-term goals, with 70% of Nigerians polled in 2024 demanding faster relief measures.