Taiwo Oyedele, who leads the Presidential Committee on Fiscal Policy and Tax Reforms, has reassured Nigerians that the economic changes being made by President Bola Tinubu’s government are starting to show positive effects. He spoke at an event called The Platform, organized by the Covenant Nation, on Saturday.
Oyedele highlighted one major change: the removal of petrol subsidies. He believes this move is crucial for stabilizing the economy. In the past, the government kept fuel prices artificially low and controlled the exchange rate, which made it hard for people to understand the real state of Nigeria’s economy.
He pointed out that, based on the current data, he feels confident that the worst economic troubles are now behind the country. He stated, “Removing subsidies is the best decision we made as a country. And we can now say that, for once, subsidy is gone.” He criticized the previous situation where the exchange rate of the naira (Nigeria’s currency) was misleading. For example, while it might have seemed that petrol was under N200 per litre, that wasn’t the true cost when you considered the overall economic conditions.
Oyedele explained that before these reforms, Nigeria was in a tough spot financially. The government was using all its income just to pay off debts, rather than actually reducing them. This meant that everything else, like paying salaries or funding security efforts against groups like Boko Haram, was being financed through borrowing money. He warned that this heavy reliance on loans had brought Nigeria very close to a financial crisis, similar to what has happened in countries like Sri Lanka and Venezuela.
He shared a concerning example from Sri Lanka, where there were times when people couldn’t even get fuel for their cars. Oyedele also talked about how the government had printed a massive amount of money—almost N40 trillion—and was surprised when this led to inflation, which is when prices go up. He explained that while the removal of subsidies might not be something people can see directly, it is an important step towards fixing the economy.
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Although he acknowledged that many Nigerians are facing immediate challenges because of these reforms, especially with rising living costs, he encouraged people to remain optimistic. He expressed that the problem isn’t with Nigeria itself, but possibly with the leadership. He compared the situation to America, where violence happens frequently, yet people there don’t lose hope in their country. Instead of saying, “May Nigeria never happen to you,” he suggested that we should think, “May Nigeria work for me.”
Since President Tinubu took office in May 2023, he has started a series of economic reforms, including ending fuel subsidies and introducing new tax laws. These changes have received mixed reactions from the public, as many people are now facing higher prices for everyday goods and services.
