Nigeria@66: Tinubu’s Reforms Yield Gains, But Household Welfare Remains Under Pressure – Oyintiloye

An All Progressives Congress (APC) chieftain in Osun, Hon. Olatunbosun Oyintiloye, says the economic reforms introduced by President Bola Tinubu since May 2023 have reshaped Nigeria’s economic direction, with gains recorded in some key areas but continuing pressure on household welfare, purchasing power and the cost of living.

Oyintiloye stated this during a media briefing with newsmen in Osogbo on Wednesday, saying that as Nigeria marks its 66th Independence Anniversary, a fair assessment of the economy requires comparing the situation inherited in 2023 with developments under the Tinubu administration’s reform programme.

He said the administration inherited an economy facing foreign exchange shortages, weak crude oil production, the financial burden of petrol subsidy, low government revenue, heavy debt-service obligations, infrastructure deficits, and widespread poverty.

According to him, the removal of petrol subsidy and reforms in the foreign exchange market represented major policy shifts, complemented by efforts to strengthen revenue mobilisation, investment and production.

Oyintiloye, a former lawmaker, said the reforms had been credited with improving the country’s trade balance, unifying the exchange-rate system, rebuilding foreign exchange reserves, raising tax revenue, reducing debt-service pressure, containing fiscal deficits and curbing excessive Ways and Means financing.

He added that efforts to boost oil and gas production, improve the investment climate, address inflationary pressures and strengthen public financial management were also important components of the reform agenda.

Oyintiloye said social intervention programmes had equally provided support to vulnerable Nigerians, with the Federal Government reporting substantial disbursements to millions of households.

He, however, said such interventions must remain transparent, targeted and measurable to ensure that assistance translated into meaningful improvements in household welfare.

“Subsidy removal addressed a major fiscal burden but also triggered significant adjustment costs, with higher petrol prices affecting transportation, food distribution, production and household expenditure.

“Similarly, foreign exchange reforms sought to reduce distortions associated with multiple exchange-rate windows, but the subsequent naira depreciation increased the cost of imports, machinery, medicines and industrial inputs,” he said.

Oyintiloye said available figures presented a mixed but important economic picture, with improvements reported in inflation, external reserves and real GDP growth, even as the naira exchange rate and cost of living remained major concerns.

“Lower inflation, higher reserves and stronger GDP growth are important developments, but they must be considered alongside food prices, wages, employment and household purchasing power,” he said.

He said stronger revenue mobilisation had created fiscal space for infrastructure, education, healthcare, security and social protection, but added that it must be matched by efficient public spending.

“Debt sustainability should also be assessed alongside government revenue and debt-service obligations rather than by debt stock alone,” he added.

Oyintiloye identified oil production, infrastructure and electricity as critical to the next phase of economic recovery.

He said higher crude oil production could strengthen government revenue and foreign exchange earnings, while roads, railways and ports should be assessed by their impact on logistics and productivity.

He also said improvements in electricity generation, transmission and distribution would reduce the heavy costs incurred by businesses and households on alternative power sources.

According to him, agricultural policies should be judged by their impact on food production, storage, irrigation, mechanisation, security and prices.

He said manufacturers also needed reliable electricity, access to foreign exchange, affordable financing, infrastructure and predictable regulation to expand production and create jobs.

Oyintiloye further stressed the importance of human capital development, saying investments in education, healthcare, technical skills, digital competence and research must translate into employment, productivity and higher incomes.

He cautioned that nominal wage increases should not be mistaken for improved welfare if the cost of living rose faster, noting that real purchasing power remained a crucial measure of economic wellbeing.

Oyintiloye also noted that the Federal Government was intensifying efforts to tackle criminality and ensure the safety of lives and property across the country, adding that such efforts must be sustained.

He said Nigeria’s economic situation since May 2023 could therefore be described as one characterised by major policy changes and gains in several macroeconomic areas, alongside continuing pressures on household welfare.

“The ultimate test of reform is what it does to production, jobs, investment, household income, and the standard of living.

“Nigeria needs to move from stabilisation to stronger productivity and broad-based prosperity,”

“We acknowledge the hardship Nigerians are experiencing, but returning to the old system without addressing its fundamental problems would only postpone the crisis.

“The answer is to ensure that the resources freed from subsidy are converted into tangible benefits for the people, and the Tinubu administration has been doing that”, he said.

“Oyintiloye appealed to Nigerians to be patient for the reform to be fully mature in order to appreciate the gains on the economy.”