Not a few Nigerians were excited when President Bola Ahmed Tinubu delivered a speech that could be best described as a New Year resolution to, wit, tackle inflation, food insecurity, high cost-of-living and social disequilibrium weighing down the citizenry.
In a New Year message Wednesday, the president called on Nigerians to remain focused and united, assuring that 2025 would be better. He solicited the support and cooperation of Nigerians as his administration pursues its goal of a one trillion-dollar economy.
He said: “As the New Year dawns, it brings many hopes, aspirations, and prospects for better days. By the grace of God, 2025 will be a year of great promise in which we will fulfill our collective desires”.
The president acknowledged the fact that 2024 posed numerous challenges to citizens and households, and expressed confidence that 2025 will bring brighter days. He said economic indicators point to a positive and encouraging outlook for Nigeria, noting that fuel prices have gradually decreased. He said Nigeria recorded foreign trade surpluses in three consecutive quarters.
President Tinubu assured that the government will intensify efforts in 2025 to lower the cost of food and essential drugs by boosting food production and promoting local manufacturing of essential drugs and other medical supplies.
He promised to reduce inflation from its current high of 34.6% to 15%. “With diligent work and God’s help, we will achieve this goal and provide relief to all our people.”
The president said in 2025, his administration would further consolidate and increase access to credit for individuals and critical sectors of the economy to boost national economic output.
“To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.
“The company – expected to start operations before the end of the second quarter – is a partnership of government institutions, such as the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Agency, and Ministry of Finance Incorporated, the private sector, and multilateral institutions.
“This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth. It will drive growth, re-industrialisation, and better living standards for our people,” Tinubu said.
The president also spoke on citizenship, stressing that to achieve national goals and objectives, Nigerians must become better citizens and uncompromising in devotion and allegiance to Nigeria.
He said: “Citizens’ moral rectitude and faith in our country are fundamental to the success of the Renewed Hope Agenda. In 2025, we will commit to promoting adherence to ethical principles, shared values, and beliefs under the National Identity Project.
“The Youth Confab will begin in the first quarter of 2025, a testament to our commitment to youth inclusiveness and investment as nation-builders. The Ministry of Youth will soon announce the modalities for selecting the conference’s representatives from our diverse, youthful population.”
Expectedly, Nigeria’s main opposition Peoples Democratic Party (PDP) has criticised President Tinubu’s speech, saying it lacks concrete solutions to the nation’s most pressing issues, such as fuel price hikes, widespread hunger, and improving national security.
Notwithstanding the PDP’s cynicism, experts have projected that Nigeria’s economy will bounce back in 2025 on the back of a likely lower inflation and exchange rate stability, buoyed by recent accretion of the foreign exchange reserves and the nation’s petrol refining renaissance.
The economy of Africa’s top oil producer faced a series of downturns in 2024 as the reforms by the federal government in 2023 took their tolls on the citizens by way of depreciation of the naira, steep rise in petrol prices and high inflationary pressure that escalated a worst cost-of-living crisis in a generation.
But analysts see the economy maintaining a modest positive outlook for 2025 as prices are expected to cool, with the exchange rate seen sticking to its recent gains through the year.
The chief executive officer of the Centre for the Promotion of Private Enterprises (CPPE), Muda Yusuf, projects that the naira will extend its recent stability, highlighting the surge in Nigeria’s foreign exchange reserves exceeding $40 billion as one of the justifications for the positive outlook.
Yusuf also revealed that the import substitution impact of the newly operational Dangote and Port Harcourt refineries will potentially ease the pressure on the naira.
“With these refineries easing the demand pressure on forex for fuel imports, the naira will benefit from reduced dependency on external currency flows,” the former director general of Lagos Chamber of Commerce and Industry said, adding that a gradual recovery in the non-oil export sector could contribute positively to foreign exchange inflows.
By the end of 2024, the official exchange rate at the Nigerian Foreign Exchange Market (NFEM) stood at N1,537, a modest rise from the average N1,455.59 in January 2024 and N907.1 in December 2023.
Blueprint commends President Tinubu’s vision and steadfastness in recalibrating Nigeria’s economy towards sustainable growth and development. The president’s oft-assurances of the renaissance of the nation’s economy underscores his sincerity and unwavering commitment in this regard. This optimism is already manifesting in the reduction of the pump price of petrol from N1,060 to N956 per litre at the close of 2024.
What President Tinubu needs to succeed is the unflinching support of Nigerians, irrespective of regional, political or religious affiliation. While criticisms are within the ambit of democratic principles and practices, they should, nonetheless, be constructive and driven by patriotism. The PDP’s proclivity for condemning every policy and programme of the incumbent federal government, no matter how well intentioned, negates this basic principle and must be jettisoned.