Tinubu’s Economic Reforms Have Stopped Nigeria’s Financial Crisis – Sunday Dare
The presidency defended President Bola Tinubu’s economic policies on Thursday, stating that the ongoing reforms have halted the financial crisis Nigeria was experiencing due to years of mismanagement by previous governments.
Sunday Dare, Special Adviser to the President on Media & Public Affairs, speaking on Arise Television, highlighted that the country was losing up to $7.5 billion annually due to fuel subsidies before the current administration’s intervention.
Dare emphasized the importance of holding governors accountable for the substantial revenues now available to them, noting that the monthly revenue shared by the 36 states and the federal government has surged from N760 billion in 2023 to N3.2 trillion in 2024.
He explained: “Sometimes, failure to act early results in much bigger problems later. Nigeria was losing vast amounts and heading toward economic decline. We needed immediate action. At the time President Tinubu took office, two major changes were essential. The country had struggled with subsidy removal for over 30 years, bleeding $7.5 billion annually. At one point, 87 Nigerian companies and individuals were implicated in a corruption scandal tied to the subsidy. The government eventually took the bold step to remove the subsidy, freeing up resources for human capital development.”
Dare further explained that the subsidy removal had significantly increased government resources, allowing for greater financial distribution. “If subsidy removal had not taken place, we would not have seen such a dramatic increase in resources, reaching N3.2 trillion,” he stated.
Dare also pointed out that the president’s administration has been providing financial support to poor and vulnerable Nigerians to soften the impact of the economic changes. “Currently, over N197 billion has been distributed to 5.3 million households. Additionally, around N75,000 will be given to approximately 17 million Nigerians living in poverty. These measures reflect approaches seen in advanced economies,” he said.
Addressing concerns about the government’s expenditure on debt servicing, Dare noted that Tinubu’s administration has been actively managing debt accumulated by previous presidents. “We’ve reduced the proportion of revenue spent on debt servicing from 91% to 62%. President Tinubu has worked to pay down the debts inherited from four former administrations. Without addressing these debts, the economy would not have had the room to grow.”
He emphasized that the government is committed to ensuring that any loans taken are used for their intended purpose. “The government must be accountable for any loans it takes. Under President Tinubu, we are focused on using loans for specific projects and policies. A strong tax system is not just about generating revenue, but ensuring fair and equitable distribution of resources,”Dare concluded.
