Deconstructing Tinubu’s one year of economic restructuring

ON May 29, 2024, it will be one year that President Bola Ahmed Tinubu assumed office. His ascension brought a lot of hope to Nigerians because of his strong and appealing pedigree as an administrator. He left a solid footprint in Lagos as the state’s former governor, which his successors were toeing besides championing progressive politics that reverberates in all the states being controlled by the defunct Action Congress of Nigeria before the consummation of the All Progressives Congress (APC) by a merger of political parties.

Periscopeing Bola Ahmed Tinubu’s antecedents from these prisms, millions of Nigerians widely believed that he was prepared for presidency unlike what were obtainable in the past. This accounted for the high hope Nigerians had in his presidency. Putting things in the right perspective, and based on the prevailing situation with the economy and social life in the country, the people’s expectations can’t be said to have been met.

This has, however, been misinterpreted to mean that the Bola Tinubu administration has failed Nigerians. I don’t share this view. I am of the opinion that the present administration has not failed Nigerians. The Tinubu presidency has not dashed the hopes of Nigerians, but I believe it is taking Nigerian through a bumpy and rough course that would end in economic prosperity for our nation with some of the hard economic policies he has been implementing. As far as I am concerned, I see light at the end of the tunnel.

Bola Tinubu, in an address on the day of his inauguration as president of Nigeria, started the economic policy of his administration. He did not waste a second to announce the removal of the albatross called fuel subsidy which, until now, was being used to pillage the economy. Though the announcement of the removal of fuel subsidy triggered the resultant painful increase in price of commodities, especially food, but the advantage outweighs the demerits. Before Tinubu’s presidency many states in Nigeria were expressing fears about imminent slide into economic distress. For instance, Governor Godwin Obaseki of Edo State raised the fear that it would be difficult for the states to effectively implement their budgetary provisions owing to the humongous and frightening debt profile owed by the Nigerian federal government. He raised the concern about how the federal government of President Muhammadu Buhari had been borrowing to service debts and to execute its recurrent expenditure. But Tinubu, when he came in and faced the issue, was able to arrest this drift through his removal of fuel subsidy. Today, states are now buoyant enough to pay salaries and effect salary increments. The states can now also provide various kinds of infrastructure for their citizens.

It is also noteworthy to say that the present Tinubu-led administration has taken copious actions to increase revenue generation through blockage of loopholes being used to sabotage the economy. The establishment of the Ministry of Marine and Blue Economy has been able to help the country to reduce the high level of corruption and revenue draining at our seaports. It was widely acknowledged that the Nigerian Ports Authority (NPA) and Nigeria Maritime Safety Agency (NIMASA) were cesspits of corruption. But, this sordid scenario is gradually being curtailed because they have a supervisory ministry that takes account of their operations and oversee all trade dealings through these Federal Government agencies.

It is noteworthy also that before the advent of Tinubu’s presidency, Nigeria was experiencing undulating revenue generation ranging between N790 billion to about N850 billion monthly into the federation account, according to Federal Accounts and Allocation Committee (FAAC). It was the continued plummeting of the distributable revenue that made many economic experts to raise fear that Nigeria could go into economic distress. This situation is being taken care of headlong. The FAAC distributable revenue now stands at about N1.128 trillion and it is rising progressively, which is an indicator that the revenue generation drive has been successful.

It should also be understandable that the dollarization of the economy is also one of the factors causing serious debilitation of the Nigerian currency. Some of the local and foreign airlines charge their fares in dollars instead of Naira. Some of the multi-national companies operating in the country are also paying for service in dollars, which has been pernicious to the currency. But with the total “Nairanisation” of the economy, the Naira is gradually gaining strength against foreign currencies. However, it is hoped that when this takes root, it will help drive down the rising inflation in the country.

This is also a policy for which President Tinubu should be commended. Then the centralization of the activities of the bureau de change operators has been a plus to this administration. The clampdown on illegal operators of the market has gradually been restoring sanity in the system.

The situation might not assume the expected dimension being envisaged by Nigerians, but I am hopeful that the second year of this administration would be more beneficial by the time all these reforms begin to elicit the dividends of democracy to the citizens.

Dalimore Aluko, a retired Deputy Principal, sent this piece from Ikere -Ekiti, Ekiti State and can be reached through 08032712451.

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