Society Gists

Two years into his presidency, Bola Ahmed Tinubu has demonstrated that difficult decisions are sometimes the most necessary. From the outset, he signaled his intention to govern with boldness. At his inauguration on May 29, 2023, he made the now-famous declaration: “Subsidy is gone and gone for good.” This line, more than a policy statement, became a symbol of his reformist resolve.

The removal of the fuel subsidy, a political third rail in Nigerian governance, was a radical departure from past ambivalence. Tinubu’s administration understood the weight of the moment and acted decisively. Though the impact was initially harsh—as expected with any sudden market correction—the long-term benefits are beginning to emerge. Billions once drained by subsidy payments are now redirected into productive sectors.

The government’s swift deployment of Compressed Natural Gas (CNG) buses to reduce transportation costs, coupled with financial palliatives to states, demonstrates a layered strategy: mitigate the pain while steering toward sustainability. Simultaneously, over $500 million in Foreign Direct Investments (FDIs) have been secured, and oil production has increased—clear signs that investor confidence is rebounding.

Tinubu didn’t stop at subsidy reform. He tackled Nigeria’s notoriously complicated foreign exchange regime by floating the naira. The move to unify FX windows brought transparency and is laying the groundwork for a stable currency. While the naira experienced volatility, the slide has slowed, and the dollar is showing relative stability. The economy is adjusting, gradually but perceptibly.

Revenue is up, with a reported increase of N9.1 trillion in the first half of 2024 compared to the same period in 2023. The debt service-to-revenue ratio has dropped from 97% to 68%. These are not just figures; they are signs of an economy regaining its footing.

By placing pragmatism above populism, President Tinubu has shifted Nigeria from economic firefighting to recovery. While challenges remain, the indicators are clear: the course correction is working.