11
The Presidency has defended President Bola Tinubu’s economic reforms, rejecting claims by former Vice President Atiku Abubakar that the administration is pursuing fiscally reckless policies and worsening Nigeria’s economic challenges.
In a statement issued on Sunday, the President’s Special Adviser on Information and Strategy, Mr. Bayo Onanuga, said Atiku’s criticism failed to reflect the current state of the economy and relied largely on data from the early stages of the administration’s reform programme.
According to the Presidency, the economic reforms introduced since 2023, including the removal of fuel subsidy, exchange-rate adjustments and ongoing tax reforms, were designed to address long-standing structural distortions and place the economy on a sustainable growth path.
The statement maintained that Nigeria’s economy has recorded significant improvements since the difficult adjustment period in 2024, citing increases in both dollar and naira-denominated Gross Domestic Product (GDP), improved government revenues and a reduction in the country’s debt service-to-revenue ratio.
Responding to Atiku’s criticism of government borrowing, the Presidency argued that Nigeria’s debt profile should be assessed alongside the country’s economic capacity and revenue-generating ability rather than by the size of its debt alone.
It added that Nigeria’s debt-to-GDP ratio remains comparatively moderate and that borrowed funds are being deployed for infrastructure and other long-term investments.
The Presidency also defended the removal of fuel subsidy, describing the policy as a necessary fiscal reform that has significantly increased monthly allocations to states and local governments through the Federation Account Allocation Committee (FAAC).
According to the statement, the increased revenues have enabled many state governments to invest more in infrastructure, education, healthcare, salaries, pensions and other social programmes.
On tax reforms, the Presidency said the objective was to create a fairer tax system by reducing the burden on low-income earners and small businesses while improving compliance among higher-income individuals and large enterprises.
The statement also highlighted what it described as achievements of the administration in healthcare, education, infrastructure and social investment, including the revitalisation of primary healthcare centres, expansion of tertiary healthcare facilities, student loan programmes and ongoing road and rail projects.
The Presidency further dismissed Atiku’s claim of a ₦7.98 trillion oil windfall, arguing that fluctuations in crude oil production, production costs and existing crude-backed obligations meant such a figure could not be sustained by available data.
While acknowledging that the reforms had imposed short-term economic hardship, the Presidency insisted that they were necessary to restore macroeconomic stability and improve Nigeria’s long-term growth prospects.
It added that the Federal Government had introduced several intervention programmes to cushion the impact of the reforms on vulnerable households.
The statement concluded that the administration would remain focused on implementing structural reforms aimed at expanding economic opportunities, strengthening public institutions and improving the living standards of Nigerians.
The latest exchange follows recent criticism by former Vice President Atiku Abubakar, who accused the Tinubu administration of fiscal recklessness, excessive borrowing and failing to translate the gains from fuel subsidy removal and other reforms into tangible improvements in the welfare of ordinary Nigerians. Atiku also questioned the administration’s tax reforms and claimed that higher global crude oil prices had generated substantial additional revenue that had not been fully accounted for.
President Tinubu’s administration has consistently defended its economic policies, arguing that difficult reforms such as the removal of petrol subsidy, exchange-rate liberalisation and tax restructuring were necessary to address long-standing fiscal imbalances inherited over several decades.
While the reforms have contributed to higher inflation and increased living costs in the short term, the government maintains that they have strengthened public finances, increased allocations to states, improved revenue generation and laid the foundation for sustainable economic growth.
