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Presidency replies New York Times’ jaundiced report on Nigeria’s economic situation

The Presidency has reacted to a report published in the New York Times criticising the Nigerian economy as facing the worst trajectory in a generation.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday reacted to the report credited to Ruth Maclean and Ismail Auwal’s.

According to the Presidency, the 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.

The Special Adviser on Information and Strategy said because of the ‘misleading’ slant of the report, the government needed to clear up some misconceptions conveyed by the reporters as regards the economic policies of the President Bola Tinubu administration that came into power at the end of May 2023.

He said one significant aspect of the report was that it painted the dire experiences of some Nigerians amid the inflationary spiral of the last year and blamed it all on the policies of the new administration.

He also said the report, based on several interviews, is at best jaundiced, all gloom and doom, as it never mentioned the positive aspects in the same economy as well as the ameliorative policies being implemented by the central and state governments.

Onanuga went on to say that Tinubu did not create the economic problems Nigeria faces today.

According to the presidential aide, Tinubu 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, as happened in Zimbabwe and Venezuela,” he noted.

Onanuga said this was the background to the policy direction taken by the government in May/June 2023: the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.

According to the presidential aide, for decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens.

Onanuga also alleged that the state oil firm, NNPCL, the sole importer, had amassed trillions of Naira in debts for absorbing the unsustainable subsidy payments in its books.

He said by the time Tinubu took over the leadership of the country, there was no provision made for fuel subsidy payments in the national budget beyond June 2023.

“The budget itself had a striking feature: it planned to spend 97 percent of revenue servicing debt, with little left for recurrent or capital expenditure. The previous government had resorted to massive borrowing to cover such costs. Like oil, the exchange rate was also being subsidized by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy.

“By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 BDCs that were previously licensed by the Central Bank. What was more, the country was failing to fulfil its remittance obligations to airlines and other foreign businesses, such that FDIs and investment in the oil sector dried up, and notably Emirate Airlines cut off the Nigerian route,” he said.

Onanuga said to deal with the cancer of public finance, Tinubu on his first day rolled back the subsidy regime and the generosity that spread to neighbouring countries. Then, his administration floated the naira.

He said, “After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored, though there remain some challenges. 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.

“The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.

“The inflationary rate is slowing down, as shown in the figures released by the National Bureau of Statistics for April. Food inflation remains the biggest challenge, and the government is working very hard to rein it in with increased agricultural production.

“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.

“The Tinubu government, in November last year, in consonance with its food emergency declaration, invested heavily in dry-season farming, giving farmers incentives to produce wheat, maize, and rice. The CBN has donated N100 billion worth of fertiliser to farmers, and numerous incentives are being implemented. In the western part of Nigeria, the six governors have announced plans to invest massively in agriculture.

“With all the plans being executed, inflation, especially food inflation, will soon be tamed.

“Nigeria is not the only country in the world facing a rising cost of living crisis. The USA, too, is contending with a similar crisis, with families finding it hard to make ends meet. US Treasury Secretary Janet Yellen raised this concern recently. Europe is similarly in the throes of a cost-of-living crisis. As those countries are trying to confront the problem, the Tinubu administration is also working hard to overturn the economic problems in Nigeria.

“Our country faced economic difficulties in the past, an experience that has been captured in folk songs. Just like we overcame then, we shall overcome our present difficulties very soon.”

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Osun Commissioner denies sending fake soldiers to Ilobu over ongoing crises

Osun commissioner, Kolapo Alimi, has denied claim that he sent fake soldiers to Ilobu over the the ongoing communal clash between the community and neighbouring Ifon and Erin Osun towns.

The Commissioner said this while responding claim by one Tairu Babatunde, the Public Relations Officer of Ilobu Descendant Union (IDU) that he sent out fake soldiers to Ilobu to carry out killings.

“This is a lie taken to the extreme of great mischief,” Alimi said.

The Commissioner who decried the communal clashes said rather than politicise it, every right thinking person in the affected communities ought to strive for the avoidance of the carnage.

“The killings and destructions in the concerned communities are uncalled for because we are brothers and sisters.

“We have an age long relationship of inter marriages. This brotherhood and sisterhood is what we should promote as opposed to killing and maiming of ourselves. It is despicable and uncalled for.

“More unfortunate is the politicization of the conflicts, by using the conflicts to blackmail my humble self by some political jobbers hiding under the name of the conflicts.

“It started about a year ago when the conflicts between Ifon and Ilobu escalated. Quickly, some politicians from the opposition in Ilobu, hiding under the name of fighting for Ilobu interest started blackmailing Oluomo Kolapo Alimi as the one supporting Ifon against Ilobu.

“These baseless allegations reverberate throughout the length and breadth of Ilobu.

“It took Kolapo Alimi several efforts to disabuse the mind of right thinking people of Ilobu about these allegations.

The situation became worse now that Erin is involved, they reinvented their false claims that Alimi brought fake Soldiers to Ilobu.

“Before I delve into the issues, let’s inform those that might not know or remind those that have forgotten the contributions of Kolapo Alimi to the Development of Ilobu.

“My humble self, Kolapo Alimi , as a young boy, had a spell of almost ten years as a teacher in Ilobu Grammar School,Ilobu. I had a record of hard work which impacted positively on many Ilobu indigenes who are today doing well in their different areas of specialisation.

“Thereafter, when I ventured into public service as a politician and eventually, a Commissioner, I, Kolapo Alimi appointed an Ilobu indigene as my Personal Assistant, (an unprecedented step in our political development in our areas).

“In addition, I have records of facilitating the employment of many Ilobu indigenes into Local Govts, Lautech (now Uniosun teaching hospital) and Civil Defence among other key offices in various establishments in Osun and beyond.

“With all humility and modesty , I make bold to say that, I have assisted many Ilobu indigenes despite the fact that I am not an indigene of the town.
On politics, I stood firmly with Honourable Nasiru Olateju, an Ilobu indigene to become the member representing Irepodun/Orolu state constituency, in 2019. Let me stop at that for now.

“It is then quite surprising and astonishing that some people will deliberately be out as a result of mischief and other reasons, particularly politics, to malign my person and integrity.

“An example of such was a blackmail and malicious press release authored by one Tairu Babatunde, the Public Relations Officer of Ilobu Descendant Union (IDU) in which he alleged that I sent fake soldiers to Ilobu to carry out killings. This is a lie taken to the extreme of great mischief.

“Ordinarily,I wouldn’t have responded the way I am currently doing because, anybody holding a public position, more so, who is into politics, should from time to time expect such backlashes from the political opponents,” the Commissioner concluded.

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“I’m in charge” – Gov Alia dismisses calls for state of emergency in Benue

Benue State Governor, Rev Fr Hyacinth Alia, has dismissed calls for a state of emergency in the state, describing them as politically motivated and a desperate attempt to undermine his administration’s progress.

The Governor was reacting to allegations made by the Centre for Judicial Integrity, CJI, which accused his government of attempting to buy off members of the judiciary.

Governor Alia, through his Chief Press Secretary, Tersoo Kula, refuted the claims as baseless and unfounded.

He stated that those behind the calls for a state of emergency are disgruntled political elements seeking to destabilize Benue for their selfish interests.

“There is no crisis in Benue State. Governor Hyacinth Alia is fully in charge and committed to good governance,” the statement read.

He urged the people of Benue to disregard the falsehoods being spread by “crisis vendors” and focus on the transformational governance his administration is delivering.

“The call for a “state of emergency” in Benue State is not purely vexatious but also a flagrant display of political opportunism. It is evident that these irritated political operatives are sponsored by unscrupulous factions desperate and eager to capitalize on any situation for their advantage.

“Their motives are clear: to undermine a state that is presently going through effective governance and progress under Governor Alia’s leadership.

“There is no unrest in Benue State. Gov. Hyacinth Alia is fully in charge and control of the state,” he added.

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Tinubu inaugurates academy to nurture future leaders

President Bola Tinubu on Monday inaugurated the Nigerian Youth Academy (NIYA) to empower young Nigerians and nurture the next generation of leaders.

Tinubu, represented by the Vice-President Kashim Shettima, said the academy would focus on skills development, employment, leadership and civil engagement.

This, according to him will be achieved through world-class training in digital literacy, technical skills, entrepreneurship and the creative industries.

Tinubu said his administration would ensure that the youth were equipped to compete on the global stage

He said initiatives like the Youth Investment Fund and the Presidential Initiative for Youth Enterprise Clusters would provide financial support, mentorship and resources for young entrepreneurs.

“The establishment of the National Youth Development Bank will ensure access to the capital needed to turn ideas into thriving businesses,” said the President.

According to Tinubu, Nigeria is a peculiar nation with a median age of 17 years, one of the youngest in the world.

“This demographic reality presents both extraordinary opportunity and a pressing challenge. The Nigerian Youth Academy is, therefore, our bold response to this reality.

“Over the next two years, this academy will train and empower millions of young Nigerians. It will equip them with the skills, knowledge and opportunities needed to compete with the rest of the world.

“This is not just an investment in their future, it is an investment in the future of our nation,” Tinubu said.

Earlier, Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, said the academy would complement other transformative government initiatives that empahaised Tinubu’s commitment to young people.

Edun said the ministry of finance was fully committed to supporting programmes like NIYA that created real values, promoted service export and reduced youth unemployment.

“We will continue to work with the ministry of youth development and other partners to ensure that this platform succeeds and be integrated into the national economic strategy,” Edun said.

Also, Mr Ayodele Olawande, the Minister of Youth Development, said the academy would train, connect and empower the youth with skills needed for entrepreneurship.

“This initiative is for every Nigerian youth and is free. NIYA represents the determination of Mr President to help the youth to build their future, create opportunity for themselves and their family,” he said.

The News Agency of Nigeria (NAN) reports that the highpoint of the event was the presentation of N1 million start-up packs for six youths selected from each geopolitical zones. (PM/NAN)