Presidency Counters New York Times Report: Tinubu Inherited a Dead Economy

The Nigerian Presidency has responded sharply to a recent report by the New York Times on Nigeria’s economic crisis, asserting that President Bola Tinubu inherited a dire economic situation upon assuming office on May 29, 2023.

In a statement titled “Rejoinder to New York Times jaundiced report on Nigeria’s current economic situation,” the Special Adviser to the President on Information and Strategy, Bayo Onanuga, accused the New York Times of presenting a biased and negative portrayal of Nigeria’s economic policies and situation.

The statement reads: “Ruth Maclean and Ismail Auwal’s feature story with the title ‘Nigeria Confronts Its Worst Economic Crisis in a Generation,’ published on June 11, reflected the typical predetermined, reductionist, derogatory, and denigrating way foreign media establishments reported African countries for several decades.”

Onanuga emphasized that the economic challenges faced by Nigeria predate Tinubu’s administration, which took bold steps such as removing the fuel subsidy and floating the naira to stabilize the economy. He contended that these measures, though initially painful, were necessary to avoid a deeper economic crisis similar to those experienced by Zimbabwe and Venezuela.

He stated, “President Tinubu did not create the economic problems Nigeria faces today. He inherited them. As a respected economist in our country once put it, Tinubu inherited a dead economy. The economy was bleeding and needed quick surgery to avoid being plunged into the abyss.”

Onanuga also highlighted that the fuel subsidy had cost Nigeria $84.39 billion between 2005 and 2022, leading to significant debts and a lack of funds for crucial infrastructure and social services. He pointed out that the previous administration’s budget planned to spend 97 percent of revenue on debt servicing, leaving little for other expenditures.

Addressing the floating of the naira, Onanuga explained that the previous subsidized exchange rate system was unsustainable and led to significant arbitrage opportunities and foreign exchange shortages. He acknowledged the initial instability in the naira’s value but noted that the situation was improving, with the exchange rate stabilizing.

He added, “After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored. The exchange rate is now below N1500 to the dollar, and there are prospects that the naira could regain its muscle and appreciate to between N1000 and N1200 before the end of the year.”

Onanuga cited positive economic indicators, such as a trade surplus in the first quarter of 2024 and renewed investor confidence, evidenced by significant investments and loans from international bodies like the World Bank, AfDB, and Afreximbank. He also highlighted government initiatives to combat inflation, particularly food inflation, through increased agricultural production and support for farmers.

“The Tinubu administration and the 36 states are working assiduously to produce food in abundance to reduce the cost. Some state governments, such as Lagos and Akwa Ibom, have set up retail shops to sell raw food items to residents at a lower price than the market price,” he noted.

The Presidency’s response concluded by urging the public to disregard the New York Times report and trust in the administration’s efforts to steer Nigeria through its economic challenges. It also drew parallels to similar cost-of-living crises in other parts of the world, asserting that Nigeria, too, will overcome its current difficulties.

By addressing the economic challenges head-on, the Tinubu administration aims to foster a resilient and self-sufficient economy for Nigeria.