Tinubu trades off political risks for Nigeria’s economic reforms- IMPI

Abdulaziz
Mar, Wed, 2025

Economy/Business

Tinubu trades off political risks for Nigeria’s economic reforms- IMPI

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By Ginika Okoye

The Independent Media and Policy Initiative (IMPI), a policy think-tank, has lauded President Bola Tinubu’s economic reforms in spite of diverse opposition.

A statement by the group’s Chairman, Dr Omoniyi Akinsiju, in Abuja on Wednesday, said that the risk assessment of the Tinubu’s reforms done by it showed the president deserved credit for his achievements.

Akinsiju said Tinubu deserved credit for going ahead with his economic policies in spite of the possibility of the opposition capitalising on the attendant short-term pains to drive its agenda.

”In spite these challenges, we commend President Tinubu for his steadfast commitment to advancing economic reforms amid substantial opposition over the past 22 months.

“The administration has demonstrated a dedication to its reform agenda in spite of the lack of immediate incentives for engaging in long-term change which is characteristic of developing nations.

”This requires significant statesmanship and leadership to navigate uncharted territories,” the chairman said.

He noted that only national interest would make an administration go ahead with reforms that were risky enough to lead to electoral loss.

The chairman said Tinubu had shown exceptional perseverance, driven by a forward-looking vision for Nigeria’s economy, prioritising national interest over personal or electoral gains.

“This commitment is particularly notable considering the conventional approach of starting reforms with minor and more manageable steps to build success stories and political support,” he said.

This, he said, had been exemplified in Nigeria’s total trade exports which surged to 50.4 billion dollars in 2024.

He said the surge was driven by exchange rate depreciation due to the harmonisation of foreign exchange windows and the elimination of fuel subsidies, the two flagship foundational policies of the reform agenda.

“Data from the National Bureau of Statistics (NBS) shows that Nigeria recorded a total trade volume of N138 trillion, the highest in the country’s history, representing a 106 per cent increase compared to the previous year.

“This translates to 89.9 billion dollars, indicating a 22.1 per cent surge in 2024 when dollarised,” he said.

Akinsiju said that foreign investment inflow into the country in 2024 revealed that Nigeria received about 21 billion dollars’ worth of foreign investment, with only the Nigeria National Petroleum Corporation Limited (NNPCL) attracting 17 billion dollars

The chairman said the total Federal Account Allocation Committee (FAAC) allocations increased to N15.26 trillion in 2024 which represented 43 per cent increase from the previous year.

He said the surge could be attributed to Tinubu-led administration’s fiscal reforms, including fuel subsidies removal and exchange rate adjustments, significantly boosting oil revenue remittances.

Akinsiju, however, expressed concern that in spite of falling food prices in recent months, the agriculture sector had continued the trend of distorted growth in the last five years.

He said the agriculture sector had slumped from 3.42 per cent in 2020 to 1.74 per cent in 2024.

The chairman expressed optimism that recapitalisation of the Bank of Agriculture (BOA) and the recently sealed Green Imperative Project (GIP) deal with Brazil, targeting small scale farmers across the 774 local government areas would help boost growth in the sector. (NAN) (www.nannews.ng)

Edited by Ifeyinwa Okonkwo/Ese E. Eniola Williams

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