The Nigerian government has strongly denied claims made in a recent New York Times article that painted a bleak picture of the country’s economy.
The article, titled “Nigeria Confronts Its Worst Economic Crisis in a Generation,” was published on June 11 and authored by Ruth Maclean and Ismail Auwal.
In a detailed press release, Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy, criticized the report as “predetermined, reductionist, derogatory, and denigrating.”
He emphasized that the report failed to acknowledge the positive steps taken by the Tinubu administration to address Nigeria’s economic challenges.
President Tinubu inherited a struggling economy and took immediate action to prevent further decline.
Onanuga explained, “President Tinubu did not create the economic problems Nigeria faces today. He inherited them.”
He noted that the administration abolished the fuel subsidy regime and unified multiple exchange rates to stabilize the economy.
The press release highlighted that Nigeria had spent $84.39 billion on fuel subsidies from 2005 to 2022, creating a significant financial burden. By the time Tinubu took office, no budget provision existed for fuel subsidies beyond June 2023. Additionally, the previous government had accrued massive debt, spending 97% of revenue on debt servicing.
Onanuga also addressed the currency situation, explaining that the Central Bank of Nigeria had been spending $1.5 billion monthly to defend the naira.
“By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 Bureau De Change (BDC) operators,” he said.
Tinubu’s administration floated the naira, leading to initial instability but eventual signs of recovery.
Positive economic indicators include a trade surplus of N6.52 trillion in Q1 2024 and renewed interest from investors. The World Bank, African Development Bank (AfDB), and Afreximbank have provided loans, restoring some confidence in Nigeria’s financial stability.
Despite ongoing challenges, particularly with food inflation, the government is working to increase agricultural production and reduce costs. Initiatives include dry-season farming and providing fertilizers to farmers.
Onanuga pointed out that Nigeria is not alone in facing economic difficulties, citing similar issues in the USA and Europe. He expressed confidence that Nigeria will overcome its current problems, just as it has in the past.