PRESIDENT Bola Tinubu said his administration’s reforms attracted over $30 billion in foreign direct investments within the past year.
He attributed the surge in investments to his government’s commitment to restructuring the economy and creating a business-friendly environment.
Tinubu disclosed this during his nationwide address on Nigeria’s 64th Independence Anniversary, on October 1, expressing confidence that the bold economic reforms undertaken since his administration took office 16 months ago were beginning to yield positive results.
The ICIR reports that his claims conflict with the rising inflation and a hike in the cost of living that have pushed many citizens into despair.
Tinubu had stopped fuel subsidy and devalued the local currency – the naira – thus causing a spiral hike in food and commodity prices since he took over power on May 29, 2024.
While the President admitted the economic hardship his policies and reforms had caused, he stressed that his reforms were beginning to yield positive results, with over $30 billion in foreign direct investments into the nation since he took over power.
The President emphasised that the decision to embark on comprehensive reforms, rather than maintaining the status quo, was essential to prevent further economic decline.
He described the economy as being at a “critical juncture” when his administration assumed office, with fiscal mismanagement and inefficiencies threatening its stability.
“The economy is undergoing the necessary reforms and retooling to serve us better and more sustainably. If we do not correct the fiscal misalignments that led to the current economic downturn, our country will face an uncertain future and the peril of unimaginable consequences.
“Thanks to the reforms, our country attracted foreign direct investments worth more than $30 billion in the last year,” Tinubu said.
He further affirmed that his administration was committed to promoting free enterprise, allowing for both free entry and exit of investments, while ensuring the integrity and effectiveness of regulatory processes.
He noted that this approach was central to divestment transactions in the upstream petroleum sector, to positively transform the industry.
Tinubu highlighted that the ExxonMobil-Seplat divestment would receive ministerial approval in the coming days, following its conclusion by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in accordance with the Petroleum Industry Act (PIA).
This, he added, aligns with similar qualified divestments previously approved in the sector.
In addition to the petroleum sector, Tinubu pointed out that the government’s approach to managing monetary policy had brought stability to the foreign exchange market.
He revealed that the country had cleared a $7 billion forex backlog and reduced its debt service ratio from 97 per cent to 68 per cent while maintaining a steady foreign reserve of $37 billion.
“The more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in our foreign exchange market. We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion.
“We have cleared the ways and means debt of over N30 trillion. We have reduced the debt service ratio from 97 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills,” Tinubu said.
Meanwhile, this wasn’t the first time Tinubu would be boasting of strides his administration made in reforming Nigeria’s economy, despite the hardships many citizens continue to face.
Addressing the nation, on Sunday, August 4, following the #EndBadGovernance protests in many parts of the country, the President detailed several economic reforms undertaken by his administration, including the removal of fuel subsidies and the abolition of multiple foreign exchange systems, which he said were essential to halt economic mismanagement and foster sustainable growth.
However, many Nigerians have claimed that these strides have not translated into real improvements, noting that the hardships have rather doubled.
The ICIR reported that Nigerians are mobilising to protest what they have described as “the hardships, privations, hunger, unemployment, insecurity, and poverty” that the Tinubu administration has inflicted on the country.s
The protest, tagged #FearlessOctober begins today nationwide.
Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: [email protected]. He tweets @UsmanMustapha_M