Nigerians must remain patient and steadfast as the country undergoes significant economic reforms under President Bola Tinubu, according to Yusuf Tuggar, Nigeria’s Minister of Foreign Affairs. Tuggar made this appeal during an interactive session at the Tuggar Foundation office in Bauchi over the weekend, where he addressed concerns about the hardships citizens are currently facing.
Speaking to journalists, Tuggar acknowledged the widespread frustration but emphasized that Nigeria is not alone in experiencing economic challenges, pointing out that several factors have contributed to the situation.
“The policies of the past administration played a major role in creating the hardship we are facing today,” Tuggar stated. He further attributed the economic difficulties to global factors, such as the 2008 financial crisis and the more recent disruptions caused by the COVID-19 pandemic.
Legacy of an Outdated Petroleum Industry
Tuggar highlighted the country’s reliance on imported petrol, noting that Nigeria’s refining capacity has not kept pace with its growing population. “Nigerians over the years have been importing petrol. We had four refineries—two in Port Harcourt, one in Kaduna, and one in Warri—built when Nigeria’s population was much smaller. Today, we have a population of 220 million, which means the consumption of petrol has gone up, but we have not been expanding our refining capacity. This has forced us to import more petrol at a time when global prices are rising.”
He further explained that Nigeria’s foreign exchange system, distorted by fuel subsidies, had exacerbated the situation. “The exchange rate was equally affected by the subsidy. Instead of subsidising production and industries that could have spurred economic growth, we were subsidising the importation of petroleum products,” Tuggar said.
Economic Reforms Under Tinubu’s Leadership
Since assuming office, President Tinubu has implemented a series of macroeconomic reforms, which Tuggar described as necessary to safeguard Nigeria’s future. “When President Tinubu came into office, he made the decision to institute these reforms. We could no longer afford to continue buying expensive petrol. The reforms meant that we would stop subsidising petrol imports,” he explained.
One major change was the unification of Nigeria’s exchange rate, which had previously allowed for multiple rates, fostering arbitrary practices. Tuggar criticized the misuse of foreign exchange allocations, stating, “Some people were getting allocations of dollars but were not using them to import raw materials for industries. Instead, they were selling the dollars on the market and pocketing the profits.”
He also pointed to the activities of cryptocurrency traders, accusing them of undermining the government’s efforts. “There was a cryptocurrency exchange exploiting the reforms to launder money. People who had stolen funds in Nigeria were using cryptocurrency to move the money out of the country. This was undermining the reforms and worsening the hardship.”
Palliatives and Long-Term Solutions
Tuggar reassured Nigerians that the government is actively working to mitigate the hardships through various measures. “The president has been distributing palliatives to citizens and providing farmers with fertiliser, inputs, seedlings, and pesticides,” he said.
He acknowledged that the impact of the reforms has been slow to materialise, but stressed that the country is not in isolation. “This hardship is taking place all over the world. We will continue to remain steadfast,” Tuggar urged, adding that the reforms are essential for securing Nigeria’s long-term prosperity.
As the Tinubu administration continues to navigate the complex economic landscape, Tuggar’s appeal for patience and faith highlights the government’s belief that its reforms will eventually bring relief to Nigerians struggling with the current economic difficulties.
