President Bola Ahmed Tinubu has declared that his administration’s wide-ranging reforms are laying the groundwork for a sustainable and more prosperous future for Nigerians, as he marked the second anniversary of his presidency.
In a nationwide broadcast on Wednesday, Tinubu said the economic and governance changes introduced since he assumed office on May 29, 2023, under the Renewed Hope Agenda, are designed to reduce the cost of living, promote economic justice, and foster an investment-friendly climate where no citizen is left behind.
“We are laying the foundation for a more sustainable future…together, we are creating a system where prosperity is shared, and no one is left behind,” the President stated.
He thanked Nigerians for their resilience and support, describing it as essential in navigating what he called “historic challenges.” The President pointed to two major early reforms—removal of fuel subsidies and the unification of the exchange rate—as necessary decisions to prevent the country’s collapse into economic crisis.
“The two were no longer sustainable and had become a chokehold on our nation’s neck,” he said.
President Tinubu reaffirmed that the economy is showing signs of improvement despite persistent cost-of-living pressures. He said inflation is easing, the oil and gas sector is experiencing a rebound with over $8 billion in fresh investments, and fiscal indicators are trending positively.
He noted that Nigeria’s crude oil receipts are now matching budget expectations, and the fiscal deficit has been cut from 5.4% of GDP in 2023 to 3.0% in 2024, thanks to increased revenue collection and improved transparency.
The President added that first-quarter 2025 revenues exceeded ₦6 trillion, and the halting of Ways-and-Means borrowing had helped stabilise inflation.
Debt and Reserves Outlook Improved
On Nigeria’s debt profile, Tinubu reported that emergency borrowing had been curtailed, and while the debt-to-GDP ratio rose to 53% due to currency revaluation, the debt service-to-revenue ratio has fallen significantly from nearly 100% in 2022 to below 40% in 2024.
He said the country’s external reserves have surged from $4 billion in 2023 to over $23 billion by the end of 2024, and state-level revenues have increased by more than ₦6 trillion, enabling governors to clear backlogs and invest in infrastructure.
New Fiscal and Tax Framework
The President announced the launch of a new strategic fiscal framework to ensure responsible borrowing, disciplined spending, and fair taxation. He revealed that a Tax Ombudsman will be created to protect vulnerable taxpayers and ensure a more equitable tax system, especially for small businesses.
As part of the overhaul, he said Nigeria’s tax-to-GDP ratio has climbed from 10% to 13.5% in just one year. Multiple levies stifling small businesses are being scrapped, and essential services like food, education, healthcare, rent, and public transport have been exempted from value-added tax (VAT).
Tinubu reiterated that the administration remains committed to transparency and acknowledges the temporary hardships facing Nigerians. However, he insisted that the alternative to current reforms would have been economic collapse marked by hyperinflation, massive debt defaults, and fuel scarcity.
“We do not take your patience for granted,” he said. “These reforms are designed to build a business-friendly economy that supports every Nigerian.”
Highlighting youth-focused initiatives, Tinubu said the administration is creating a more supportive environment for digital jobs and remote work. He also referenced the ongoing National Single Window project aimed at streamlining international trade and boosting Nigeria’s global competitiveness.
Looking Ahead
With his administration now halfway through its four-year mandate, the President expressed optimism that Nigeria is “on course to building a greater, more economically stable nation.”
“Today, I proudly affirm that our economic reforms are working. We are on course to building a greater, more economically stable nation,” he concluded.
President Tinubu’s second anniversary speech is expected to spark widespread political debate as Nigeria prepares for the 2027 election cycle amid ongoing scrutiny of his economic policies.
