President Bola Tinubu has stated that despite the bump in the cost of living occasioned by the ongoing reforms in the country, his administration has made some undeniable progress.
Tinubu stated this while marking the second anniversary of his administration on Thursday, noting that the administration under the Renewed Hope Agenda, pledged to tackle economic instability, improve security nationwide, reduce corruption, reform governance, and lift the people out of poverty.
He said, while implementing the reforms necessary to strengthen the economy and deliver shared prosperity, the administration has remained honest by acknowledging some of the difficulties experienced by compatriots and families. Adding that the administration does not take Nigerians patience for granted.
Affirming that the economic reforms are working, President Tinubu said, “inflation has begun to ease, with rice prices and other staples declining. The oil and gas sector is recovering; rig counts are up by over 400% in 2025 compared to 2021, and over $8 billion in new investments have been committed. We have stabilised our economy and are now better positioned for growth and prepared to withstand global shocks.
“In 2025, we remain on track with our fiscal targets. Gross proceeds per barrel from crude oil are broadly aligned with our forecasts as we intensify our efforts to ramp up production. Our fiscal deficit has narrowed sharply from 5.4% of GDP in 2023 to 3.0% in 2024. We achieved this through improved revenue generation and greater transparency in government finances. In the first quarter of this year, we recorded over N6 trillion in revenue.
“We have discontinued Ways & Means financing, which has been a major contributor to high and sticky inflation. The NNPC, no longer burdened by unsustainable fuel subsidies, is now a net contributor to the Federation Account. We are also achieving fuel supply security through local refining.
“Our debt position is improving. While foreign exchange revaluation pushed our debt-to-GDP ratio to around 53%, our debt service-to-revenue ratio dropped from nearly 100% in 2022 to under 40% by 2024. We paid off our IMF obligations and grew our net external reserves by almost 500% from $4 billion in 2023 to over $23 billion by the end of 2024.
“Thanks to our reforms, state revenue increased by over N6 trillion in 2024, ensuring that subnational governments can reduce their debt burden, meet salaries and pension obligations on a timely basis, and invest more in critical infrastructure and human capital development,” he said.
President Tinubu affirmed that one of the administration’s most impactful achievements is the tax reform agenda, which, according to him, is already yielding results.
“By the end of 2024, our tax-to-GDP ratio rose from 10% to over 13.5%, a remarkable leap in just one year. This was not by accident. It results from deliberate improvement in our tax administration and policies designed to make our tax system fairer, more efficient, and more growth-oriented.
“We are eliminating the burden of multiple taxation, making it easier for small businesses to grow and join the formal economy. The tax reforms will protect low-income households and support workers by expanding their disposable income. Essential goods and services such as food, education, and healthcare will now attract 0% VAT. Rent, public transportation, and renewable energy will be fully exempted from VAT to reduce household costs further.
“We are ending the era of wasteful and opaque tax waivers. Instead, we have introduced targeted and transparent incentives supporting high-impact manufacturing, technology, and agriculture sectors. These reforms are not just about revenue but about stimulating inclusive economic growth,” he said.
The President said there is a deliberate focus on the youth, with a friendlier tax environment for digital jobs and remote work would empower.
He said “through export incentives, Nigerian businesses will be able to compete globally. Our National Single Window project streamlines international trade, reduces delays, and enhances Nigeria’s competitiveness.
“To promote fairness and accountability, we are establishing a Tax Ombudsman, an independent institution that will protect vulnerable taxpayers and ensure the system works for everyone, especially small businesses.
“Most importantly, we are laying the foundation for a more sustainable future by introducing a new national fiscal policy. This strategic framework will guide our approach to fair taxation, responsible borrowing, and disciplined spending.
“These reforms are designed to reduce the cost of living, promote economic justice, and build a business-friendly economy that attracts investment and supports every Nigerian. Together, we are creating a system where prosperity is shared, and no one is left behind,” he said.
Tinubu said the administration has breathed new life into the Solid Minerals sector as part of its efforts to diversify the economy. Noting that revenue has increased phenomenally, investors are setting up processing plants as the sector dumps the old pit-to-port policy and embraces a new value-added policy.
“As a result of our bold and deliberate policies, the economy is growing stronger again. Real GDP rose by 4.6% in Q4 2024, with full-year growth of 3.4%. This is one of the strongest in a decade,” he said.
While stating that agriculture and food security are top priorities of the administration’s Renewed Hope Agenda, President Tinubu said the administration has launched aggressive initiatives to boost local food production, support farmers, and stabilise food prices.
“We have also invested in mechanised farming by procuring thousands of tractors, other farming tools, and fertilisers,” he added.
