The Federal Government on Monday defended its broad economic reform agenda, stating that although the policies have caused hardship for businesses and households, they have helped steer Nigeria away from fiscal instability and laid the groundwork for sustainable long-term growth.
Vice President Kashim Shettima and the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said key policies such as the removal of fuel subsidy, foreign exchange reforms, and tax restructuring were necessary steps to address long-standing structural weaknesses in the economy.
They, however, acknowledged that Nigerians and businesses are still grappling with the effects of high inflation, elevated interest rates, and increased operational costs.
Speaking at the fifth Nigeria Employers’ Summit in Abuja, themed “Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth,” Shettima—represented by his Special Adviser on General Duties, Aliyu Umar—said the present administration inherited an economy weighed down by unsustainable subsidies, weak revenue generation, and declining investor confidence.
He noted that the government could have chosen to delay difficult decisions but instead opted for necessary reforms. According to him, “The economies that flourish today did not stumble into prosperity.
They summoned the foresight to imagine a different future and the courage to implement the reforms that brought that future within reach.
“Foresight without courage produces fine speeches and empty outcomes. Courage without foresight produces motion without progress. What a nation requires is the marriage of both: the vision to see what must change and the resolve to change it, even when the path is steep.”
The Vice President said the Renewed Hope Agenda was designed to correct long-standing economic distortions. “When President Bola Tinubu assumed office, the economy carried deep structural burdens. Fuel subsidy had become fiscally unsustainable, the foreign exchange market was fragmented, government revenue was weak, and investor confidence required rebuilding.
“The easy option at that time was to postpone difficult decisions. But leadership is tested when the right decision is also the difficult one.”
He added that Nigeria could not continue building prosperity on distortions or create jobs under conditions of multiple taxation, poor logistics, and insecurity. “The reforms have been difficult, but their purpose is to correct the foundations so that growth becomes real, durable and inclusive.
“There is no doubt that restoring macroeconomic stability was our first task because a stable economy is the first infrastructure of business. Before roads, railways, and ports, businesses needed confidence to plan and invest.”
Shettima also defended the removal of fuel subsidy and the unification of the foreign exchange system, describing them as central to economic recovery.
“The subsidy crowded out investment while encouraging inefficiency and rent-seeking. The foreign exchange reforms are delivering a more transparent and market-reflective system. Businesses do not reject taxation. They reject multiple taxation, harassment and systems that punish compliance while rewarding informality.”
He further explained that the government’s tax reforms aim to simplify the system, reduce the number of taxes, and improve compliance. “Our agenda reduces the number of taxes, harmonises administration, protects the vulnerable, supports small businesses and encourages compliance by lowering rates while widening the tax base needed to fund infrastructure.”
The Vice President also noted that ongoing interventions in the power sector, gas development, and the Presidential Compressed Natural Gas (CNG) Initiative are intended to reduce energy costs for businesses and households.
On his part, Finance Minister Taiwo Oyedele admitted that while the reforms have brought hardship, they have also significantly improved the economy compared to three years ago.
Speaking during a panel session titled “Reforms in Focus: The Milestones, the Challenges, the Prospects,” he said the major challenge facing the reforms is poor public understanding and a widening trust gap between citizens and government.
He explained that despite initial difficulties, Nigeria is beginning to see positive results, including stronger external reserves, improved investor confidence, and expanded social intervention programmes such as the Nigerian Education Loan Fund.
Oyedele said the administration met an economy on the verge of collapse, with low foreign exchange liquidity, rising debt obligations, and limited fiscal space, adding that the reforms were introduced to prevent a total breakdown and restore stability.
“When you say the economy has stabilised, we are operating where we are now because that is where we must be. Three years ago, you couldn’t even pay for a $20 application with your ATM card, and some people needed to make a living because dollars were drying up.
“Three years ago, many states could not pay salaries. Our revenues were being used to service debt, and there was hardly any money left for infrastructure.”
He added that meaningful progress has been made, especially in social investments. “We didn’t even have the Nigerian Education Loan Fund. Today, more than one million households have benefited.
“It is not just about tuition and monthly stipends. The money that families would have spent on school fees is now being used to support small businesses and meet other household needs.”
The fifth Nigeria Employers’ Summit, organised by the Nigeria Employers’ Consultative Association, brought together policymakers, business leaders, and development partners to examine the impact of ongoing reforms and explore strategies for boosting enterprise competitiveness and inclusive growth.
The Tinubu administration’s reforms—including fuel subsidy removal, exchange rate unification, and ongoing tax changes—have been praised by international financial institutions and investors. However, they have also triggered inflationary pressures and increased the cost of living and doing business nationwide.
ADEOLA KUNLE
No comments:
Post a Comment