The Nigerian Presidency has strongly refuted claims made by the New York Times in an article titled “Nigeria Confronts Its Worst Economic Crisis in a Generation,” published on June 11. The article criticized the country’s economic state, drawing significant attention for its critical stance.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, described the report as biased, continuing a trend of negative portrayals of African nations by Western media. Onanuga argued that the article unfairly blamed the current economic difficulties solely on the administration of President Bola Tinubu, who assumed office in late May 2023, without acknowledging the inherited challenges from previous administrations.
Onanuga emphasized that the economic struggles were inherited and not a direct result of President Tinubu’s policies. He highlighted efforts by both federal and state governments to address these challenges, such as the abrogation of the fuel subsidy regime and the unification of multiple exchange rates. He pointed out the longstanding issues of a fuel subsidy regime costing $84.39 billion between 2005 and 2022 and the government subsidizing the exchange rate, which created significant financial strains.
To address these issues, Tinubu’s administration implemented several reforms, including floating the naira and ending the fuel subsidy. Onanuga noted that despite initial challenges, such as the naira’s depreciation, there are signs of economic stabilization and improvement, with the exchange rate now below N1500 to the dollar and a trade surplus recorded in Q1.
Onanuga also highlighted international financial support, such as a $2.25 billion loan from the World Bank, as a sign of restored confidence in Nigeria’s economy. He acknowledged the inflationary pressures, particularly on food prices, but emphasized government efforts to increase agricultural production and provide support to farmers.
In conclusion, Onanuga stressed that Nigeria is not alone in facing economic challenges, comparing the situation to the rising cost of living crises in the USA and Europe. He expressed confidence that, with ongoing reforms and strategic interventions, Nigeria will overcome its current economic difficulties.
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