By Olatunbosun Obafemi
President Bola Ahmed Tinubu on Thursday marked the second anniversary of his administration with a confident affirmation that the wide-ranging reforms enacted over the past two years are beginning to reverse years of economic drift and social stagnation.
In a nationally televised address, Tinubu said his administration’s economic strategy, built around the Renewed Hope Agenda, has begun to stabilise public finances, reinvigorate investment, and ease inflationary pressures. He maintained that the government’s bold reforms—particularly the controversial removal of fuel subsidies and the unification of Nigeria’s multiple exchange rates—were critical to preventing an economic collapse.
“Two years ago, you entrusted me with the sacred responsibility to lead our nation at a time of historic challenges,” Tinubu said. “Together, we have faced these headwinds with courage and determination… The only alternative to our reforms was a fiscal crisis.”
Economic Overhaul and Fiscal Performance
President Tinubu highlighted major gains in fiscal management, stating that the country’s fiscal deficit has declined from 5.4% of GDP in 2023 to 3.0% in 2024, citing stronger revenue collection and greater fiscal discipline. First-quarter earnings in 2025 reportedly topped ₦6 trillion, bolstered by increased crude-oil receipts and transparency in revenue remittances.
He confirmed that Ways-and-Means financing, an emergency borrowing channel that had stoked inflation under past administrations, has been halted. With the removal of fuel subsidies, the Nigerian National Petroleum Company Limited (NNPCL) has become a net contributor to the Federation Account. Additionally, ongoing investment in domestic refining is beginning to enhance fuel security and reduce import dependence.
The President also cited a significant improvement in Nigeria’s debt profile, with the debt-service-to-revenue ratio declining from nearly 100% in 2022 to below 40% in 2024. Though currency devaluation pushed the debt-to-GDP ratio temporarily to around 53%, Tinubu said the overall debt burden is now better managed. He further disclosed that Nigeria has cleared its obligations to the International Monetary Fund (IMF), and that external reserves have risen from $4 billion in 2023 to over $23 billion by the end of 2024.
Tax Reforms and Economic Justice
A major pillar of Tinubu’s speech was the unveiling of a new national fiscal policy framework aimed at promoting fair taxation, responsible borrowing, and disciplined spending. Central to this plan is the establishment of a Tax Ombudsman—an independent watchdog to protect small businesses and vulnerable taxpayers.
Under the new framework, Nigeria’s tax-to-GDP ratio has climbed from 10% to 13.5% in one year, with Tinubu crediting improved administration and a move toward a fairer system. He announced that multiple levies that previously stifled micro, small, and medium enterprises (MSMEs) are being eliminated.
In a bid to cushion households, the administration has removed value-added tax (VAT) on essential goods and services, including food, education, healthcare, rent, public transport, and renewable energy.
Meanwhile, blanket tax waivers have been replaced with targeted incentives in key growth sectors—particularly manufacturing, technology, and agriculture—to stimulate long-term investment and job creation.
Inflation, Oil Investment, and Growth Trajectory
While acknowledging that Nigerians continue to experience cost-of-living pressures, Tinubu insisted that inflation is beginning to ease, especially for staples like rice and other basic food items.
He also cited a strong rebound in the oil and gas sector, with rig activity quadrupling compared to 2021 and over $8 billion in new investments. These, he said, are boosting national output and shielding the economy from external shocks.
The President noted that Nigeria’s GDP grew by 4.6% in Q4 2024 and 3.4% for the full year, describing it as one of the strongest economic performances in a decade.
Social Services: Health, Education, and Youth Empowerment
Tinubu outlined a series of social investments aimed at strengthening public health, expanding educational access, and equipping young Nigerians with skills for the modern economy.
On healthcare, the government has:
- Refurbished more than 1,000 primary health centres, with 5,500 others undergoing upgrades.
- Completed three of six new cancer treatment centres.
- Made dialysis services free in selected tertiary hospitals.
- Facilitated free caesarean sections for over 4,000 women.
- Increased national health insurance enrolment from 16 million to 20 million Nigerians in two years.
In the education sector, Tinubu announced a student-loan scheme to support indigent learners, alongside major infrastructure upgrades across higher institutions.
He also spotlighted projects under the National Agency for Science and Engineering Infrastructure (NASENI), including:
- Innovate Naija
- Irrigate Nigeria
- A renewable-energy park in Gora
- Local factories assembling electric vehicles and producing diagnostic kits
- Training of Nigeria’s first cohort of female drone engineers
Infrastructure, Food Security, and Energy
The President highlighted large-scale infrastructure projects underway nationwide, including:
- Lagos–Calabar Coastal Highway
- Abuja–Kaduna–Zaria–Kano dual carriageway
- Second Niger Bridge access roads
He also mentioned efforts to enhance national power generation, through grid upgrades and investment in off-grid solar energy, especially in rural communities.
On agriculture and food security, the administration is:
- Deploying thousands of new tractors
- Distributing fertiliser and tools
- Supporting price stabilisation efforts to ease food inflation
Security and National Cohesion
Reaffirming his administration’s commitment to national security, Tinubu noted improvements in the coordination of military, police, and intelligence agencies, along with better welfare packages for personnel.
He reported that recent joint operations have reclaimed parts of the northwest from bandits, improved highway safety, and rescued multiple kidnap victims. The President urged security chiefs to remain vigilant, insisting that no Nigerian should live in fear.
Diaspora Engagement and Cultural Promotion
Internationally, Tinubu announced new instruments, including a diaspora bond and non-resident Bank Verification Number (BVN), aimed at encouraging Nigerians abroad to invest in the country’s development.
He also introduced the Motherland Festival, a new platform to showcase Nigeria’s cultural assets and promote the creative economy.
A Call for Patience and Confidence
In closing, President Tinubu expressed gratitude for the sacrifices made by Nigerians, particularly during what he described as two “turbulent” years of reform.
“The real impact of our governance objectives is beginning to take hold,” he said. “Our journey is not over, but our direction is clear. So is our resolve to tackle emerging challenges. By the Grace of God, we are confident that the worst is behind us.”
The President concluded by reiterating his vision for a stronger, more inclusive nation where prosperity is broadly shared and no Nigerian is left behind.
