- Says Nigeria’s economy has improved despite painful 2024 adjustments
By Opeyemi Adelakun
The Presidency on Sunday mounted a robust defence of President Bola Tinubu’s economic reforms, accusing former Vice President Atiku Abubakar of relying on outdated statistics and presenting a distorted picture of Nigeria’s economic performance.
In a statement titled “Facts, Not Fear: A Point-by-Point Response to Atiku Abubakar on Nigeria’s Reform Journey,” the Presidency argued that Atiku’s recent criticism failed to reflect developments recorded since the implementation of the administration’s economic reforms.
According to the statement, Atiku assessed the economy using figures from 2024 without acknowledging improvements made over the last two years.
“The Nigerian economy that underwent painful adjustment in 2024 has evolved considerably,” the Presidency stated.
It said Nigeria’s dollar-denominated Gross Domestic Product (GDP) had risen from about $253 billion after the exchange rate adjustment to approximately $377 billion, while the country’s GDP in naira increased from roughly ₦314 trillion to about ₦530 trillion.
Responding to allegations of excessive borrowing, the Presidency maintained that public debt should be measured against the country’s economic capacity rather than in isolation.
It argued that Nigeria’s debt-to-GDP ratio remained at “barely 40 per cent,” describing it as moderate when compared with many African and advanced economies.
The statement also said debt servicing had become more sustainable under the current administration.
“The debt service-to-revenue ratio has declined from nearly 100 per cent in December 2022 to less than 60 per cent under this administration,” it stated.
Defending the removal of fuel subsidy, the Presidency said the policy had significantly increased revenues shared among the federal, state and local governments through the Federation Account Allocation Committee (FAAC), enabling greater investment in infrastructure, healthcare, education and social services.
It also argued that previous administrations, including the one in which Atiku served as vice president, acknowledged the burden of fuel subsidy but failed to abolish it.
The Presidency further rejected claims that its tax reforms were designed to impose heavier taxes on Nigerians.
According to the statement, the reforms seek to reduce the burden on low-income earners and small businesses while ensuring that wealthy individuals and profitable companies contribute more through improved tax compliance.
Highlighting achievements in the social sector, the government said more than 3,000 primary healthcare centres had been upgraded, over 78,000 frontline health workers retrained, while more than 100 health facilities now provide free caesarean sections for indigent women.
It also said the Nigerian Education Loan Fund (NELFUND) had supported more than 1.64 million students, with over ₦303 billion disbursed to beneficiaries.
The Presidency also dismissed Atiku’s allegation that the government failed to account for an alleged ₦7.98 trillion oil windfall, describing the claim as misleading.
It explained that although global crude oil prices exceeded budget benchmarks, actual government earnings were affected by lower-than-projected production, production costs, revenue-sharing arrangements and existing forward crude sale agreements.
While acknowledging that the reforms had imposed temporary hardship on Nigerians, the Presidency maintained they were necessary to address long-standing structural weaknesses in the economy.
“The worst is over,” the statement declared, expressing confidence that inflation would continue to decline after temporary pressures linked to the Middle East conflict.
The Presidency added that the Tinubu administration remains focused on sustaining macroeconomic stability, expanding economic opportunities and strengthening institutions to deliver long-term growth.
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