Tinubu Hails Economic Gains On Second Anniversary, Promises Continued Reforms

President Bola Tinubu celebrated his administration’s second anniversary with a nationwide address that highlighted significant progress in economic reforms while acknowledging Nigerians’ ongoing sacrifices.

He emphasised the importance of policy changes made early in his term, such as the elimination of fuel subsidies and the simplification of foreign exchange rates.

“Two years ago, you entrusted me with the sacred responsibility of leading our country through a time of historic challenges.

President Tinubu stated, “We have faced these headwinds with courage and determination.”

He credited these bold decisions with averting a fiscal crisis marked by soaring inflation, debt default, and crippling fuel shortages.

While acknowledging that the increased cost of living is affecting many families, the President insisted that the reforms are yielding results.

He cited lower inflation, lower prices for staples such as rice, and a revival in the oil and gas industry.

“Inflation has begun to ease, with rice prices and other staples falling,” he said, adding that rig counts have increased by more than 400% since 2021, and over $8 billion in new investments have been committed to the sector.

The President emphasised the administration’s fiscal achievements, which included a smaller fiscal deficit, increased revenue generation, and a significant decrease in the debt service-to-revenue ratio.

He noted a nearly 500% increase in net external reserves, from $4 billion in 2023 to more than $23 billion by the end of 2024.

“We have discontinued Ways and Means financing, which has been a major contributor to high and persistent inflation,” Tinubu declared.

He also stated that the NNPC, no longer reliant on fuel subsidies, is now a net contributor to the Federation Account.

A large portion of the President’s speech focused on the administration’s tax reform agenda.

He claimed that the tax-to-GDP ratio had increased dramatically in a single year, from 10% to more than 13.5%.

Tinubu announced plans to eliminate multiple taxes, provide targeted incentives to key sectors, and create a Tax Ombudsman to protect vulnerable taxpayers.

“Essential goods and services such as food, education, and healthcare will now attract 0% VAT,” he announced, adding that rent, public transport, and renewable energy would all be VAT-free.

President Tinubu also addressed the country’s ongoing security challenges, commending the efforts of the armed forces and security agencies.

He cited successes in restoring order in areas previously controlled by bandits. “Highways, once dangerous to travellers, have become safer,” he claimed.

Furthermore, the President reaffirmed the government’s commitment to human capital development by investing in education, healthcare, and youth empowerment.

He specifically mentioned the student loan program and initiatives to revitalise primary health care facilities.

“We have significantly increased access to quality education through infrastructure investments and the student loan scheme to assist indigent students in tertiary institutions,” Tinubu stated.
The President also discussed efforts to diversify the economy by revitalising the solid minerals sector and maintaining investment in major road construction projects across the country.

He also mentioned improvements in electricity generation and transmission infrastructure.

Towards the end of his speech, President Tinubu announced the upcoming Motherland Festival, which aims to highlight Nigeria’s rich culture and attract tourists.

He also recognised the importance of the Nigerian diaspora and proposed policies to encourage investment and engagement.

President Tinubu ended his address with a message of hope and resilience. “Our journey is not over, but our path is clear. So is our determination to address emerging challenges. We are confident that the worst is behind us, thanks to God’s grace,” he said.

“The future looks bright, and together we will build a stronger, more inclusive Nigeria that we can all be proud of.”

The President’s address elicited mixed reactions. While some praised the progress made in economic reform and security, others expressed concern about the ongoing hardship experienced by ordinary Nigerians as the cost of living rises.

The coming months will be critical in determining the long-term impact of the administration’s policies and ability to deliver on its promises.