•I have no regret over fuel subsidy removal, says President
•Tax reforms here to stay, blames organisers, impatient masses for food stampede
President Bola Tinubu dismissed criticisms of his economic reforms yesterday, reaffirming his commitment to their continuation. He maintained that market forces would, over time, curb inflation and deliver much-needed relief to millions of Nigerians.
The President further defended his administration’s decision to remove the fuel subsidy, describing it as necessary to safeguard the nation’s economy. He stated unequivocally that he harboured no regrets over the policy.
Tinubu made these remarks during a media chat broadcast on the NTA Network, where he addressed concerns about the economic reforms’ role in exacerbating inflation, poverty, and widespread hardship.
He argued that Nigeria had been on the brink of a financial crisis, making the removal of the fuel subsidy an imperative step towards ensuring the country’s long-term economic stability and sustainability.
“It is something that is necessary, not just for us but also for our children and grandchildren. That is the pathway to prosperity,” he said. He dismissed the criticism as evidence of “smugglers fighting back” but maintained that their antics would not deter him. “Why should you have expenditures that you don’t have revenues for?” he asked.
According to him, the current generation of Nigerians, along with their children and grandchildren, would face untold economic hardship if the fuel subsidy had been allowed to continue.
“The reform is here to stay,” the President insisted, adding that the country could not cling to old practices and expect to build a new economy. He also stressed that the ongoing tax reform was for the benefit of all.
“We were heading down the wrong road in the past. I don’t want to dwell on that. I want to take the path of prosperity and focus on tomorrow today,” he said, asserting that Nigeria was building a more sustainable economic future.
The reforms, he claimed, are beginning to yield results, citing a reduction in the debt service-to-revenue ratio from 78 per cent, where it stood less than two years ago, to 68 per cent. Nevertheless, the President acknowledged that the government had no choice but to take on more debt and make other difficult decisions to build a better future.
On the rising national debt, Tinubu said, “Borrowing is not criminal.” He added that Nigeria has a significant infrastructure gap that must be addressed. He likened the situation to that of a pregnant woman who, despite temporary pains, is comforted by the joy her baby will bring.
He noted that public outcry was expected, as it is impossible to satisfy everyone. However, he described the tax reform as “pro-poor,” assuring Nigerians that vulnerable groups were protected under the scheme.
In addition, he said the reforms would “enlarge the national cake for everyone to benefit from.”
“You have given me the mandate to govern; allow me to govern to the best of my ability as President. I am focused on what I must do for Nigerians. It is not going to be Eldorado for everyone, but a new dawn is here,” Tinubu said, addressing critics of the reforms.
“Tax reform is here to stay,” he stated, emphasising that “we cannot continue to do what we were doing in past years in today’s economy.” The President concluded by explaining that the essence of the tax reforms was to eliminate colonial-era assumptions that no longer served Nigeria’s economic interests.
President Tinubu donned his bragging hat yesterday as he announced that, for three consecutive months, he has fulfilled Nigeria’s financial obligations without relying on remittances from the Nigerian National Petroleum Company Limited (NNPCL) or accessing Ways and Means financing from the Central Bank of Nigeria (CBN).
“Push me to my brag mode. In the last three months, I’ve not taken a penny from NNPC before meeting my other obligations. To me, that is excellent,” a delighted Tinubu told journalists during a chat in Lagos State.
The former Lagos governor emphasised that he has met Nigeria’s financial obligations “without reverting to the old order, without resorting to Ways and Means financing. I’ve met all obligations.”
When asked if he was grading himself, the President replied, “Why not? Will you grade me? I should grade myself if I do my homework right.” In September 2024, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, blamed his embattled predecessor, Godwin Emefiele, for harming the Nigerian economy through excessive money printing and injecting excess liquidity into the system.
“In 2015, the money supply was about N19 trillion, and in 2023, it was N54 trillion. That’s a huge increase—a very huge increase. A substantial amount of that was through Ways and Means,” Cardoso explained.
“So, essentially, the printing of money resulted in a significant amount of money chasing the same quantity of goods or relatively similar amounts of goods. I think that context is very important to understand.”
Known as Ways and Means, this mechanism allows the apex bank to provide short-term financing to the Federal Government to cover budget shortfalls. Addressing the current hardship that has led to food stampedes in different parts of the country ahead of the Christmas celebrations, the President maintained that food banks are not unique to Nigeria, except that Nigerians are not “organised” and patient.
“Every society has food banks, and they are organised. People take turns to collect food. What happened is unfortunate—people were not patient. It is very sad, but we will continue to learn from our mistakes. I see it as a major error on the part of the organiser,” he said.
The President expressed confidence that such incidents would be minimised in the future, as his administration plans to provide farmers with low-interest loans and improve security to enable them to return to their farms. This, he said, would boost local production and reduce food prices.
He further highlighted other measures being implemented to bring down inflation, including encouraging the local manufacturing of pharmaceuticals, halting unnecessary imports, and harnessing the marine ecosystem for agricultural exports.
“It is about time we did this. We have what it takes,” the President said when asked how the government plans to achieve a 15 per cent inflation rate by next year.
The assurance came amid surging food inflation, which has risen to nearly 40 per cent. The President also pledged to increase investments in infrastructure such as roads, internet, and power to enhance local production and boost the country’s economic fortunes.
As part of a new strategy for improvement, the government is promoting the adoption of electric vehicles to attract investment in the automotive industry and create jobs.
The President reiterated his administration’s commitment to fighting corruption by blocking leakages and addressing underlying factors that drive people to engage in corrupt practices.
While describing the recent increase in the minimum wage from N35,000 to N70,000 as part of efforts to curb corruption, he also cited the student loan scheme and the removal of the fuel subsidy as key policies aimed at achieving the same goal.
“Corruption, in all its forms, is bad, but we must first address the forces driving it. Why are people corrupt? Lack of social amenities and funding for their children’s education.
“There are mechanisms we have put in place to help people avoid corruption, such as paying them fair wages. I have increased the minimum wage from N30,000 to N70,000. Tackling corruption is also part of the mandate of the Economic and Financial Crimes Commission (EFCC),” he said.
When asked about the ability of the service chiefs to address insecurity in the country, Tinubu expressed confidence in the country’s security architecture. He noted that bandits and Boko Haram had terrorised the population for over two decades.
“When I was campaigning, I had to stop to pay condolences in some states. Today, we can still travel on roads in Maiduguri and other states, which was not possible before. The enemies, both within and outside, are watching what we’re doing. You have to be 100 per cent prepared to ensure the safety of the people,” he said.
The President said the country is blessed with an abundance of solid minerals to assist in jump-starting the economy. He specifically mentioned large deposits of lithium in Kaduna and Nassarawa states that will encourage the usage of electric vehicles, attract automobile assembly plants and create jobs instead of second-hand cars.
On the ability of his cabinet members to implement his policies, President Tinubu said he believed in their capacity and efficiency to turn things around and make the country better and denied any plan to reduce the size of his executive members.
He said, “I am unprepared to reduce the size of my cabinet. I am not ready to shrink the size of my cabinet. Efficiency has been at the core of my selection of ministers. I saw the need, and I put them together. You don’t give someone an assignment that they cannot get done. Job description and execution is very necessary. Nigeria is a large country; we are over 200 million. They are all adding value excellently. He, however, described 2025 as a very promising year and thanked all Nigerians for having confidence “in me, which I don’t take for granted.
I seek your cooperation and understanding. I understand what you have been through, but we are on the right path. We will maintain focus and share love with each other.”
The President stated that the country is blessed with an abundance of solid minerals that can help jump-start the economy. He specifically highlighted the large deposits of lithium in Kaduna and Nasarawa states, which he said would encourage the adoption of electric vehicles, attract automobile assembly plants, and create jobs, reducing reliance on second-hand cars.
On the ability of his cabinet members to implement his policies, President Tinubu expressed confidence in their capacity and efficiency to turn things around and improve the country. He dismissed any suggestion of reducing the size of his cabinet.
He said, “I am unprepared to reduce the size of my cabinet. I am not ready to shrink the size of my cabinet. Efficiency has been at the core of my selection of ministers. I saw the need and assembled them. You don’t give someone an assignment they cannot accomplish. Job description and execution are very necessary. Nigeria is a large country; we are over 200 million people. They are all adding value excellently.”
The President, however, described 2025 as a very promising year and expressed gratitude to all Nigerians for placing their confidence in him. “I do not take your trust for granted. I seek your cooperation and understanding. I know what you have been through, but we are on the right path. We will stay focused and share love with one another,” he said.
On the back of controversial reforms, headline inflation, turbocharged by aggressive monetary policies, rose to 34.6 per cent in November, setting a new multi-decade high and suggesting that the war against the price crisis is far from being won.
Food inflation, a major driver of the inflation surge that has persisted for over two years, climbed to 39.93 per cent, sending shockwaves through the market once again.
The spike in food inflation comes at a time when crop harvests were expected to moderate the prices of essentials, suggesting that the country is yet to see the worst and that the situation could deteriorate towards the end of the first quarter when the planting season approaches.
The crisis coincides with the government’s continued dithering on fiscal measures aimed at curbing escalating food prices. For instance, six months after the Federal Government announced zero-import duty waivers on selected food items, there are no signs that the programme has commenced.
On July 8, 2024, the Federal Government declared a 150-day duty-free import window for food commodities to address food inflation in Nigeria. The food commodities included maize, husked brown rice, wheat, and cowpeas. The executive order provided a 150-day window for duty-free importation of food items, including rice, millet, maize, and wheat.
The Guardian reported that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed that the Federal Government had started guided imports some time ago, with the private sector expected to follow suit.
However, neither the government’s imports nor the reported participation of the private sector has made a significant impact on the food market. Since the policy was unveiled, the price of a 50kg bag of rice has increased by 50 per cent, trading at around N110,000 just days before Christmas.
Edun, however, later backtracked. Responding to a question at a media event in Abuja about the delay in the implementation of the duty-free food import policy, he said the government was being cautious not to flood the country with imported food that could undermine local producers. He noted that the government was instead supporting local farmers.
Edun highlighted ongoing efforts to increase the availability of essential farming inputs such as fertiliser and seeds, particularly for small-scale farmers. These efforts are expected to boost local food production and ensure food security in the long term.
The government may also have squandered the opportunity to leverage fiscal spending to stimulate the performance of the agriculture sector, with the sector receiving as little as one per cent of the yearly budget in some cases.
Between 2017 and 2023, the budgetary allocation for agriculture has not exceeded two per cent of the total annual budget, according to a report tracking budget allocations.
During this period, the agriculture budget rose from 1.7 per cent in 2017 to two per cent in 2018 before falling to 1.56 per cent in 2019. It declined further to 1.34 per cent in 2020, experienced a slight increase to 1.37 per cent in 2021, and rose to 1.78 per cent in 2022 before dropping back to 1.11 per cent in 2023.
The trend reveals a precarious allocation pattern, with no clear commitment to increasing funding in line with the growing demand in the sector. According to an analysis of the 2023 agriculture budget prepared by ActionAid, the marginal decrease of about 0.67 per cent from the N291.4 billion budgeted in 2022 accounted for just 1.11 per cent of the total budget. This figure falls significantly short of the Comprehensive African Agricultural Development Programme (CAADP) benchmark of 10 per cent.
Against this backdrop, stakeholders have argued that public spending in the agricultural sector is insufficient and should be increased. There have also been calls for agriculture to play a central role in the government’s vision of diversifying the economy.
In recent years, various agencies, including the World Food Programme (WFP) and the Food and Agriculture Organisation (FAO), have warned of an impending food crisis in parts of the country, particularly in the north.
In their recent Cadre Harmonisé report, 33.1 million Nigerians were projected to face acute food insecurity by 2025. Cadre Harmonisé is a biannual analysis led by the Nigerian government in collaboration with the United Nations, regional technical agencies, and non-governmental organisations (NGOs). The report noted that 5.4 million children and 800,000 pregnant and breastfeeding women are at risk of acute malnutrition or wasting.
“Of these, an alarming 1.8 million children could face Severe Acute Malnutrition (SAM) and may require critical nutrition treatment,” the report stated.
It attributed the debilitating food shortages to a combination of triple-digit increases in food prices, the aftermath of devastating floods, and 15 years of insurgency in the northeast.
