Saturday, January 18, 2025

Economic reforms turning Nigeria around — Oyedele

 

Oyedele: Tinubu’s Economic Reforms Showing Positive Impact


The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured Nigerians that the ongoing economic policies implemented by the Bola Tinubu administration are beginning to produce tangible results.


Speaking at The Platform, an event hosted by the Covenant Nation on Saturday, Oyedele emphasized that the removal of petrol subsidies—one of the administration’s key reform strategies—was a necessary step towards economic recovery and stability.


He explained that the previous system, which kept fuel prices artificially low and suppressed the exchange rate, did not reflect the true state of Nigeria’s economy.


“The Worst is Behind Us”


Based on economic indicators, Oyedele expressed optimism about Nigeria’s financial outlook.


“Looking at the available data, I personally believe the worst is behind us. The removal of subsidies was the best decision we made as a country, and for once, we can confidently say subsidy is gone.”


He pointed out that, under the old system, Nigerians were shielded from the actual cost of goods and services.


“Two years ago, the naira exchange rate was about N450 to a dollar, depending on who you asked. But was that the real exchange rate? Petrol was selling below N200 per litre, but was that the actual cost?”


Oyedele further explained that Nigeria had been operating on an unsustainable economic model, where all revenue was used merely to service debt, leaving the country reliant on borrowing for essential services such as salaries and security operations.


“Nigeria was only servicing debts, not repaying them. Every other expense—salaries, infrastructure, even the fight against Boko Haram—was financed through loans. That is not sustainable.”


Avoiding Economic Collapse


Drawing comparisons to other nations, Oyedele warned that Nigeria was heading towards an economic crisis similar to what was experienced in Sri Lanka and Venezuela.


“In some countries, people had cash in hand but couldn’t buy fuel. In Sri Lanka, at one point, residents could not drive their cars every day because fuel was unavailable.”


He also criticized past policies of excessive money printing, which he said contributed significantly to inflation.


“We printed nearly N40 trillion—plus interest—and then we were surprised inflation skyrocketed. What many people don’t realize is that economic policies, though not always visible, have far-reaching effects.”


Encouraging a Positive Outlook


While acknowledging that these reforms have caused short-term financial strain for Nigerians, Oyedele urged citizens to remain hopeful about the country’s future.


“Nigeria itself is not the problem. Maybe the leadership has its challenges, but let’s change our perspective. In the U.S., gun violence happens daily, yet Americans never say, ‘May America never happen to you.’ We should stop saying, ‘May Nigeria never happen to you.’ Instead, let’s start saying, ‘May Nigeria work for me.’”


Since assuming office in May 2023, President Tinubu has rolled out several economic measures, including the removal of fuel subsidies and the introduction of controversial tax reforms. While these policies have sparked debate and led to higher living costs, the government insists they are necessary for long-term economic growth.

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