By May 29th, the current administration of President Bola Ahmed Tinubu will have spent two years in office.
The administration, from the very first day, did not leave Nigerians in doubt as to the direction of the government, as President Tinubu took the bull by the horns, declaring an end to Nigeria’s several years of unprofitable petroleum subsidy regime.
A most recent policy report issued by Nigeria Extractive Industries Transparency Initiative (NEITI), in what they titled “The cost of fuel subsidy: A case for policy review,” Nigeria spent over N13 trillion or US$74 billion, as at the prevailing exchange rate then, on fuel subsidies between 2005 and 2021.
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Bayo Onanuga, Special Adviser to the President on Information and Strategy, said: “The President summoned a major political will to remove the fuel subsidy, a terrain that all previous leaders dreaded to follow.”
Thus, the removal of the fuel subsidy was a major policy change, followed by another decision to float the Nigerian naira, which allowed market forces to determine value of the currency.
This unified the multiple exchange rates that had previously plagued the economy and created distortions.
“The adoption is seen as a more transparent market-driven approach, unlike when Nigeria had parallel exchange rate.
“The floating of the naira initially led to some volatility and inflationary pressures, no doubt, but it has been applauded for the ability to increase transparency in the foreign exchange market,” he said.
Onanuga said that the President’s bold reforms led to the reduction of debt service from 97% to 68% of revenue, providing more financial freedom to invest in essential social services like education and healthcare,
Otega Ogra, Senior Special Assistant to President on Digital Engagement, Strategy, and New Media, in his posting on his X handle, said Nigeria’s debt stock (External + Domestic of the federal government and the 36states as well as that of the FCT, has gone down from $108.2bn to $94.2bn as of Dec 31, 2024.
Ogra disclosed that the President has cleared all verified Foreign exchange backlog of about $7bn, a situation that has boosted investor confidence in the national economy.
“Despite dutifully paying off the backlog and reducing our total debt stock through consistent payments to creditors, Nigeria’s gross external reserves still grew to approximately $40.9 billion at the end of 2024, significantly higher than $33.0 billion recorded in 2023. Net external reserves amounted to $23.3 billion, a 482.5% improvement from about $4.0 billion in 2023,” he said.
The aide also noted that Nigeria achieved a Balance of Payments (BOP) surplus of $6.83 billion in 2024, a significant turnaround from deficits of $3.34 billion in 2023 and $3.32 billion in 2022, reflecting stronger trade performance and increased investor confidence, leading credence to President Tinubu’s astuteness in economic management.
“Our non-oil exports also increased by 24.6% to $7.46 billion, while gas exports surged by 48.3% to $8.66 billion, boosting our overall trade surplus. Thanks to NGML and NLNG.
“Portfolio investment inflows, a sign of rising investor confidence in a country, more than doubled, increasing by 106.5% to $13.35 billion in 2024. Renewed investor confidence in Nigeria is driven by President Bola Tinubu’s bold macroeconomic reforms.
According to him, “Personal remittances from Nigerians abroad grew by 8.9% to reach $20.93 billion, complemented by a 43.5% rise in inflows via International Money Transfer Operators (IMTOs) to $4.73 billion, demonstrating increased trust from the diaspora in our economy. Thank you, dear Nigerians in the diaspora, for believing in your country.
“Prudent management, optimisation, and deployment of resources is what you get when you elect a President who understands finance and accounting and has done actual work along these lines with major corporations in the world. This is who our President Bola Tinubu is — educated, focused, knowledgeable, and a Strategic Thinker & Planner.
“Under President Tinubu, the nation’s loan obligations to the International Monetary Fund IMF, have been significantly paid down from $2.47 billion as of 2023 to $800.23 million at the end of 2024? A substantial decrease of over 67% in that period.”
Ortega also noted that “Nigeria, under PBAT, is paying its loans back. No default. No unnecessary borrowing. No seeking for tens of billion dollars in debt bailout and sacking of 70% of the workforce (as another ‘critic-perennial candidate’ prescribed as a solution citing another country in South America as his example).
“Nigeria, under PBAT, is clearing legacy debts from multiple administrations. Yet, our foreign reserves are rising.”
He also noted that the “federating states are receiving more FAAC allocations under PBAT’s administration. Their highest ever.
“Nigeria under PBAT is now exporting more than it imports. We have a trade and payments surplus. Did I hear someone say PBAT is the real ‘consumption to production’ advocate? Foreign investors are coming back under PBAT – from those in the oil & gas sector who left to new investors in Agribusiness, Solid Minerals, Aviation, Industry, etc. That’s confidence.
“Local investors are not left out. From Dangote to BUA, Breweries to Banks, and many others, they are pulling in their biggest profits in years. If you doubt me, check official company results on the NGX website. e.g. Nigerian Breweries did a massive turnaround to profits in their just released results. Go and Verify!”
In the area of road construction, Ortega, hinted of the ongoing road 74 roads projects across 24 states of the Federation* as well as the marquee Lagos-Calabar & Sokoto-Badagry super highways which will open up industry, agriculture, and productivity along those routes.
– Approvals have been given for the completion of Abuja-Kaduna-Zaria-Kano Road.
“The East-West Road in on track. Akwanga-Jos-Bauchi-Gombe Road is being reconstructed.
– 2nd Niger Bridge Phase 2B (access roads) have commenced. The list is almost endless. Again, follow who know road!”
The President, while appreciating the importance of youth empowerment, also established a student loan scheme with over 45.6 billion Naira already processed for payment.
Additionally, the Consumer Credit Corporation was created with over 200 billion Naira to help Nigerians acquire essential products without immediate cash payments, thus reducing corruption and promoting transparency.
“We have secured $620 million under the Digital and Creative Enterprises (IDiCE) programme, creating millions of IT and technical jobs,” Tinubu announced.
Other youth-focused initiatives include the Skill-Up Artisans Programme (SUPA), the Nigerian Youth Academy (NIYA), and the National Youth Talent Export Programme (NATEP).
In the area of social welfare, Tinubu’s administration has released more than 570 billion Naira to the 36 states for livelihood support, benefiting 600,000 nanobusinesses, with an additional 400,000 expected to benefit soon.
Despite the persistent reports of hardships, Tinubu had declared that over 75,000 beneficiaries have been processed for the one million Naira micro and small business loans starting this month.
In a major move, earlier in 2024, Tinubu signed the National Minimum Wage into law, ensuring the lowest-earning workers now receive at least 70,000 Naira monthly.
The administration’s ambitious housing initiative, Renewed Hope City and Estate, aims to provide 100,000 housing units over the next three years, stimulating economic growth and job creation.
The government of President Tinubu is also targeting cultivating over 10 million hectares of land, employing millions, and increasing food production, by also opening up the livestock sector.
In a unique move that has opened up the solid minerals sector, the current administration struck a Joint Venture deal for domestic and international investors to partner with Nigeria Solid Minerals Corporation NSMC.
Dele Alake, Minister of Solid Minerals Development, said the company already has legacy mining licences inherited from the defunct Nigerian Mining Company, which will serve as its equity in minerals processing deals.
Initial studies by the AFC and SMDF confirmed the competitiveness and viability of their proposed investment in establishing a critical minerals midstream facility in Nigeria. At an indicative CAPEX of $1.3bn, this will be Nigeria’s most significant mining private sector project and foreign direct investment. The Project will contribute $1.2bn of economic output to GDP annually, over $25bn contribution during the project lifecycle, and $8bn in foreign exchange earnings. This investment is an endorsement of the Ministry’s ongoing reforms and the SMDF and AFC goals of catalysing private sector-led investment in the solid minerals sector.
Nigerian backbone in terms of human resources and financial foundation. Nigerians will get a share of the company through an investment offer, the government will own 25 per cent, and private investors will own 50 per cent.
The Tinubu’s administration also secured supports from the Government of Western Australia which recently approved the regular training of Nigerian mining professionals. The first batch of trainees will depart next month. British and Saudi Arabian investors are coming together to invest across the mineral value chain, from mining to manufacturing electric cars.
“From Latin America, we have held meetings with the leaders of Mexico and Venezuela with vast prospects of investments.
Today, we have become the indisputable leader of mining countries in Africa, thanks to the emergence of Nigeria as the pioneer chairperson of the African Minerals Strategy Group based on my advocacy for value addition and opposition to the reckless export of raw minerals. AMSG recently marked its first anniversary in Riyadh.
One of our goals is how to use this position to attract investment to Africa in general and Nigeria in particular.
“We are happy that these efforts are yielding fruits. In the first quarter of this year, the MCO received 955 applications for title grants. Six hundred and fifty-one were for exploration, 270 for small scale mining, 49 for Quarry leased and 24 for reconnaissance permits.
As part of the efforts to give tractions to investment in the sector, the federal government, under Tinubu, has approved 867 applications, including 512 exploration licences, 295 small-scale mining leases, 60 Quarry leases and 5 mining leases.
In the first quarter of 2025, MCO generated N6,957,826,200 from payment of annual service fees, application processing fees, and renewal of titles.
The Mining Marshals, the kinetic instrument for combating illegal mining, apprehended over 300 illegal miners, including foreigners.
It also combated illegal mining perpetrated by companies caught exploiting minerals without a licence. Over 90 mine sites illegally occupied were liberated.
On the non-kinetic operations, on average, 20 new co-operatives are formalised across the country every month. Between January and March, we registered 57 new co-operatives. Within the same period, the number of registered private mineral buying centres grew by 118 bringing the total number registered in the last 15 months to 549.
The addition of value by promoting new processing and manufacturing firms stays on the front burner. Lithium, rare earth, bauxite and gold plants are due for commissioning this quarter.
“Community Development is the ultimate goal of our policies and programmes. The Community Development Agreement is the instrument for making it happen. I wish to commend companies concluding negotiations of the CDA and urge those who have not done so to comply immediately to avoid the penalties,” he said.