Nigeria Was Headed For Economic Ruin – Tinubu Claims in Midterm Speech

President Bola Tinubu on Wednesday said his administration inherited a country on the brink of economic collapse and had to implement painful but necessary reforms to prevent total fiscal breakdown.

In a nationwide address marking the second anniversary of his administration, Tinubu said the state of the economy in 2023 demanded immediate action, including the controversial removal of fuel subsidies and the unification of the foreign exchange market.

“The economic and general situation of the country I inherited required that we redirect the country’s affairs with a bold and new vision,” he said. 

“It was apparent that if the federal government and the other two tiers of government must remain viable and cater to the citizens’ welfare, we must do away with decades-long fuel subsidies and the corruption-ridden multiple foreign exchange windows.”

According to him, the alternative to these reforms was a fiscal catastrophe: "runaway inflation, external debt default, crippling fuel shortages, a plunging Naira, and an economy in free fall."

Despite mounting public frustration over the rising cost of living, Tinubu insisted the reforms were yielding results. 

He pointed to falling inflation, an increase in local rice production, and renewed investor confidence, noting that rig counts in the oil sector rose by over 400% in 2025 compared to 2021, and $8 billion in new investments had been recorded.

Tinubu said Nigeria's fiscal deficit had dropped from 5.4% of GDP in 2023 to 3.0% in 2024, attributing the progress to improved revenue generation and greater transparency. 

“We recorded over N6 trillion in revenue in the first quarter of this year alone,” he said.

The President also highlighted gains in debt management, stating that external reserves had grown from $4 billion in 2023 to over $23 billion by the end of 2024, and the debt service-to-revenue ratio had dropped below 40%.

On taxation, Tinubu noted a rise in the tax-to-GDP ratio from 10% to 13.5% in 2024. He pledged a fairer and growth-oriented tax system, with exemptions for food, education, healthcare, and rent, while also clamping down on wasteful tax waivers.

“Our reforms are not just about revenue but about stimulating inclusive economic growth,” he said. 

He also announced plans to establish a Tax Ombudsman to protect small businesses and ensure fairness.

Beyond economics, Tinubu mentioned improvements in security, agriculture, healthcare, and infrastructure. 

He said over 1,000 primary health centres were being revitalised and 5,500 others upgraded, while free and subsidised dialysis services and free cesarean sections had been made available in some hospitals.

On infrastructure, he cited ongoing road projects across the six geopolitical zones, efforts to improve electricity generation, and initiatives to support farmers with mechanised tools and inputs.

Tinubu also referenced initiatives like the Student Loan Scheme and youth-focused innovation programs under NASENI to empower young Nigerians, alongside renewed investment in digital skills and industrialisation.

Looking ahead, Tinubu said his administration remains focused on building a more stable, inclusive, and resilient nation. “The worst is behind us,” he said. 

“The real impact of our governance objectives is beginning to take hold. The future is bright, and together, we will build a stronger, more inclusive Nigeria.”