The presidency has defended the economic reforms of President Bola Ahmed Tinubu’s administration while rejecting criticism from former Vice President Atiku Abubakar over borrowing, fuel subsidy removal, tax reforms and the country’s economic performance.
In a statement responding to Atiku’s assessment of Nigeria’s reform journey, the presidency argued that the former vice president’s criticism relied too heavily on economic data from 2024 and did not sufficiently account for subsequent changes in the economy.
It said economic reforms should be assessed as an ongoing process rather than on the basis of the initial period of adjustment and hardship.
The presidency pointed to changes in Nigeria’s gross domestic product (GDP) following the government’s exchange-rate reforms. It said dollar-denominated GDP, which fell to about $253 billion following the currency adjustment, had subsequently recovered to approximately $377 billion, representing an increase of about 49 per cent.
It also cited an increase in nominal naira GDP from approximately N314 trillion in 2024 to about N530 trillion, describing the growth as a reflection of increased economic activity and price changes.
However, the presidency acknowledged that such figures should be assessed alongside real GDP growth, inflation and household welfare when determining the broader impact of the reforms.
On borrowing, the presidency argued that Nigeria’s debt burden should not be assessed solely by looking at the size of the country’s debt.
It said factors including the size of the economy, revenue generation, debt-servicing costs and the purpose of borrowing should also be considered, particularly whether borrowed funds are used for productive investments or recurrent expenditures.
The presidency said Nigeria’s debt-to-GDP ratio remains below 40 per cent, comparing it with higher ratios in countries including South Africa, Egypt, Ghana, Kenya, the United States, the United Kingdom and China.
It further claimed that the country’s debt-service-to-revenue ratio had fallen from nearly 100 per cent in December 2022 to below 60 per cent, which it attributed to improved revenue performance and what it described as conservative debt management.
The Presidency maintained that the Tinubu administration’s reforms were designed to address structural weaknesses in the economy, including distortions that it said had accumulated over several years.
It argued that the reforms were not presented as painless measures but as structural adjustments intended to improve the economy’s long-term capacity.
The response also maintained that the more important measure of borrowing is whether the funds are being used to expand productive capacity and generate future revenue rather than simply financing recurrent expenditure.
The Presidency’s response comes amid continued political debate over the impact of the Tinubu administration’s economic policies, particularly the removal of petrol subsidies, exchange-rate reforms, taxation and government borrowing.
