Independence Day: Tinubu Assures Nigerians that Economic Reforms Will Pay Off Despite Rising Living Costs

President Bola Tinubu on Tuesday reiterated that he was deeply aware of the economic hardship faced by Nigerians as a result of the current reforms by his administration, but assured that the inevitable changes he embarked upon had begun to yield appreciable results.

Speaking during a nationwide broadcast to mark Nigeria’s 64th Independence Anniversary, the President stated that the rising cost of living and fading employment opportunities will soon be curbed substantially.

While pleading for patience from Nigerians, Tinubu expressed the commitment of his administration to finding long-term solutions to the problems besetting the country, noting that the economy was already turning the corner.

“Fellow Nigerians, as I address you today, I am deeply aware of the struggles many of you face in these challenging times. Our administration knows that many of you struggle with rising living costs and the search for meaningful employment. I want to assure you that your voices are heard.

“As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel,” the Nigerian leader noted.

He reiterated that the central concern of the people today is the high cost of living, especially food costs. This concern, he said, is shared by many around the globe as prices and the cost of living continue to rise worldwide.

The President assured that he was implementing many measures to reduce the cost of living at home and particularly singled out the Governors of Kebbi, Niger, Jigawa, Kwara, Nasarawa, and the Southwest Governors that had embraced the federal government’s agricultural production programme.

“I urge other states to join the federal government in investing in mechanized farming. We are playing our part by supplying fertilizer and making tractors and other farm equipment available. Last week, the Federal Executive Council (FEC) approved establishing a local assembly plant for 2000 John Deere tractors, combine harvesters, disc riders, bottom plows, and other farm equipment. The plant has a completion time of six months,” he said.

The President has since taking over the reins of power on May 29 last year embarked on some reforms, including the ‘removal’ of subsidy on petrol, raising the price from N194 to over N800 per litre.

He has also attempted to remove the government’s tight control of the foreign exchange market, with the ‘floating’ of the naira against other global currencies, a development that has led to the massive depreciation of the local currency.

In addition, these measures have pushed inflation to a multi-decade high of 33.4 percent in July this year, before falling marginally to 32.15 percent in August.

While it is tempting to focus on what has been left undone and where Nigeria has stumbled as a nation, the President argued that Nigerians must never lose sight of how far its people have come in forging and holding the country together.

He explained that since independence, the nation has survived many crises and upheavals that led to the dissolution and disintegration of many other nations worldwide.

Going down memory lane, the President recalled that six years after independence, the country descended into a political crisis that led to a bitter and avoidable civil war.

Since returning from the brink of that ‘darkest moment’, he argued that Nigeria has learned to embrace its diversity and manage its differences better, as it continues to work towards engendering a more perfect union.

However, he advised that Nigeria must also recognize some of its missed opportunities and mistakes of the past, pointing out that they must not be allowed to “follow us into the future.”

He stated that the administration took over the leadership of the country 16 months ago at a critical juncture, with the economy facing many headwinds, and Nigeria’s physical security highly impaired.

According to the President, Nigeria found itself at a dizzying crossroads, where it must choose between two paths: reform for progress and prosperity or carry on business-as-usual and collapse, stressing that he decided to choose the former.

On the security front, he expressed happiness that the administration was winning the war on terror and banditry.

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“Our target is to eliminate all the threats of Boko Haram, banditry, kidnapping for ransom, and the scourge of all forms of violent extremism. Within one year, our government has eliminated Boko Haram and bandit commanders faster than ever. As of the last count, over 300 Boko Haram and bandit commanders have been eliminated by our gallant troops in the Northeast, Northwest, and some other parts of the country.

“We have restored peace to hundreds of communities in the North, and thousands of our people have been able to return home. It is an unfinished business, which our security agencies are committed to ending as quickly as possible.

“As soon as we can restore peace to many communities in the troubled parts of the North, our farmers can return to their farms. We expect to see a leap in food production and a downward spiral in food costs. I promise you, we shall not falter on this,” Tinubu added.

On the government’s response to the recent natural disasters, particularly the flooding in parts of the country, he stated that after approving a Disaster Relief Fund to mobilise private and public sector funds, the government has also ordered integrity tests of all dams in the country to avert future disasters.

The economy, he said, is undergoing the necessary reforms and retooling to serve us better and more sustainably.

“If we do not correct the fiscal misalignments that led to the current economic downturn, our country will face an uncertain future and the peril of unimaginable consequences

“Thanks to the reforms, our country attracted foreign direct investments worth more than $30 billion in the last year,” he explained.

Tinubu said that the administration was committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of regulatory processes.

This principle, he explained, guides the divestment transactions in Nigeria’s upstream petroleum sector, where he said the government is committed to changing the fortune positively.

He said: “As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, the Nigerian Upstream and Downstream Petroleum Regulatory Company (NUPRC), in line with the Petroleum Industry Act (PIA). This was done in the same manner as other qualified divestments approved in the sector.

“The move will create vibrancy and increase oil and gas production, positively impacting our economy.”

He argued that the more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in the country’s foreign exchange market.

“We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion. We have cleared the ways and means debt of over N30 trillion. We have reduced the debt service ratio from 97 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills.

“We are moving ahead with our fiscal policy reforms. To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly.