In the world of politics, the economy often serves as a litmus test for a leader’s effectiveness. As we mark the first year of President Bola Tinubu’s tenure, experts have given their verdict on his economic performance: ‘Unimpressed to average.’
A Year of Highs and Lows
President Tinubu’s economic journey has been a rollercoaster ride, with both highs and lows. His inaugural speech on May 29, 2023, set the tone for his administration with a bold declaration: “Subsidy is gone”. This decision has had far-reaching implications for Nigerians over the past 12 months.
The Bright Spots
Despite the challenges, there have been some bright spots. The Nigerian economy under President Tinubu has shown signs of improvement. The National Bureau of Statistics reported that the Nigerian economy grew by 2.98% (year-on-year) in real terms in the first quarter of 2024. This is a significant increase from the 2.31% GDP growth recorded in the first quarter of 2023.
The agricultural sector, a critical component of the economy, has also shown marginal growth. This growth has provided the monetary authority with the leverage needed to stabilize foreign exchange rates.
Another major win for the Tinubu administration was the clearing of all valid $7 billion foreign exchange backlogs owed to bank customers. This move has helped to restore confidence in the Nigerian economy.
The Challenges
However, it hasn’t all been smooth sailing. The removal of the petrol subsidy sent prices soaring. The naira has lost about 60% of its value following two devaluations. Inflation has climbed to a three-decade high of 33%, up from 22% over the past year.
The rising cost of living has led to demands for a tripling of the national minimum monthly salary. The government’s offer, which falls short of doubling the minimum, was rejected by the largest union for Nigerian government workers.
Looking Ahead
As President Tinubu enters his second year in office, the question on everyone’s lips is: Can he turn the tide? Can he deliver on his promise of higher economic growth, a million new jobs, and security reforms?
Only time will tell. But one thing is clear: Nigerians are watching, and they expect results. As the saying goes, the proof of the pudding is in the eating. For now, the jury is still out on President Tinubu’s economic performance.
