By Abubakar Yunusa
The Federal Government on Monday defended its sweeping economic reforms, insisting that although the measures have been painful for businesses and households, they have helped pull Nigeria away from fiscal distress and laid the foundation for long-term growth.
Vice President Kashim Shettima and the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the removal of fuel subsidy, foreign exchange reforms and tax changes were necessary to rescue the economy from years of structural distortions.
The government, however, acknowledged that businesses and ordinary Nigerians were still bearing the burden of high inflation, elevated interest rates and rising operating costs.
Speaking at the fifth Nigeria Employers’ Summit in Abuja, themed “Leveraging Reforms and ESG for Enterprise Competitiveness and Inclusive National Growth, Shettima, represented by his Special Adviser on General Duties, Aliyu Modibbo Umar, said the current administration inherited an economy burdened by unsustainable subsidies, weak government revenues and declining investor confidence.
He said the easy option would have been to postpone difficult decisions but that leadership required taking hard choices.
“The economies that flourish today did not stumble into prosperity. They summoned the foresight to imagine a different future and the courage to implement the reforms that brought that future within reach. Foresight without courage produces fine speeches and empty outcomes. Courage without foresight produces motion without progress. What a nation requires is the marriage of both: the vision to see what must change and the resolve to change it, even when the path is steep.”
According to the Vice President, the Renewed Hope Agenda was designed to confront longstanding distortions that had weakened the economy.
“When President Bola Tinubu assumed office, the economy carried deep structural burdens. Fuel subsidy had become fiscally unsustainable, the foreign exchange market was fragmented, government revenue was weak and investor confidence required rebuilding. The easy option at that time was to postpone difficult decisions. But leadership is tested when the right decision is also the difficult one.”
He said the administration could not continue to build prosperity on distortions or create jobs in an economy burdened by multiple taxation, poor logistics and insecurity.
“The reforms have been difficult, but their purpose is to correct the foundations so that growth becomes real, durable and inclusive. There is no doubt that restoring macroeconomic stability was our first task because a stable economy is the first infrastructure of business. Before roads, railways and ports, businesses need confidence to plan and invest.”
The Vice President also defended the removal of fuel subsidy and the liberalisation of the foreign exchange market, describing both policies as central to economic recovery.
“The subsidy crowded out investment while encouraging inefficiency and rent-seeking. The foreign exchange reforms are delivering a more transparent and market-reflective system. Businesses do not reject taxation. They reject multiple taxation, harassment and systems that punish compliance while rewarding informality.”
He said the government’s tax reforms were designed to reduce the number of taxes, harmonise administration and support small businesses. “Our agenda reduces the number of taxes, harmonises administration, protects the vulnerable, supports small businesses and encourages compliance by lowering rates while widening the tax base needed to fund infrastructure.”
The VP added that the administration’s interventions in the power sector, gas development and the Presidential Compressed Natural Gas Initiative were all targeted at reducing the energy burden on businesses. “Our work in the power sector, gas development, debt management, the Presidential CNG Initiative and the broader energy transition serves one purpose: to reduce the energy burden on businesses and households.”
He urged the private sector to take advantage of the reforms and become a key driver of national development. “Government designs policy, but businesses build the factories, farms, services and innovations that create jobs and prosperity. We must keep engagement open because any government that ignores employers cannot fully understand the economy.”
On his part, the finance minister acknowledged that the reforms had come with painful consequences but insisted that the economy was in a far better position than it was three years ago.
