Dr. Tope Fasua, the Special Adviser on Economic Affairs to President Bola Tinubu, has expressed confidence in the current economic reforms, stating that Nigeria has successfully navigated its most challenging adjustment period and that initial positive outcomes are becoming evident in various key economic indicators.
In an interview with Arise News on Tuesday, Fasua highlighted that criticism of the government’s reforms often overlooks factual data and international assessments, clarifying that the Tinubu administration had to take decisive action regarding fuel subsidies and the liberalization of foreign exchange to stabilize the economy.
"It was essential that we operated as a government focused on reforms," Fasua stated.
He emphasized that the ongoing reforms are already showing benefits, supported by both domestic evaluations and international analyses.
Fasua pointed out that Nigeria's recognition among nations expected to make significant contributions to global economic growth acts as testament to the success of these reforms.
"Nigeria wouldn’t have reached the IMF's projected list of nations contributing to global growth in 2026 if the reforms weren’t effective. We ranked sixth, anticipated to account for approximately 0.15% of global growth, amid a global economic stagnation," he remarked.
He further affirmed, "This indicates that our economy is continuing to grow. Regardless of our sentiments, it remains one of the largest economies in Africa."
In response to those who suggest a slower approach to the reforms, Fasua dismissed such notions, arguing that hesitation would have aggravated Nigeria’s economic challenges.
"In such situations, the worst action is to delay or adopt a gradual approach," he explained.
Fasua underscored that the president’s prompt actions regarding the fuel subsidies and foreign exchange platform have revealed a path forward, stating, "The worst is now behind us."
He assessed that Nigeria’s economy has shifted from a state of decline to one of growth and recovery.
"After ten consecutive quarters of trade surpluses, we have seen a drop in imports by around 20%, while exports have risen by about 40%. Our regional trade within Africa is approximately 25% greater than before," he elaborated.
Addressing public anxiety regarding the rising cost of living, Fasua argued that food prices have indeed decreased, countering prevailing opinions.
"Food prices are down now," he remarked, citing prices of gari, which have seen a reduction of about 70%, and rice, which has lowered by 30 to 40%. Additionally, he noted that bean prices have also dropped.
He accused detractors of suffering from a form of cognitive dissonance.
"We appear trapped in a mindset believing conditions cannot improve, leading to the unending declaration that food prices are rising," he stated. "Let everyone be aware: food prices have fallen in Nigeria."
Fasua connected this decrease in food pricing with a drop in inflation rates.
"Food inflation is now around 11%, and overall inflation is trending down towards 15.15%," he reported.
"We are on the path toward single-digit inflation."
He argued that claims of escalating food poverty contradict the observations from farmers complaining about low prices for produce.
"You cannot declare both food poverty and disregard the worries from farmers about inadequate prices forcing them away from farming," he challenged.
Fasua indicated that increasing wages and tax reforms are positively impacting disposable income for many Nigerians.
"The minimum wage increased by 130%, while the naira depreciated by approximately 50%. This means every worker is earning more nominally, including artisans who command higher fees for their services," he stated.
He reminded listeners that recent tax amendments favoring low- and middle- income workers allow individuals earning ₦25 million or less annually to retain more income.
"Reports show that about 90 to 95 percent of Nigerians employed in compliant organizations saw an increase in their January salaries. So why aren’t we discussing this?" he criticized.
Upon the prospect of millions more Nigerians facing poverty, Fasua explained that such trends reflect global economic disparities rather than failures within domestic policy.
"What we contend with can be described as a K-shaped economy," he said. "Individuals at the upper end are becoming wealthier while those at the bottom face challenges. This is a worldwide trend, not exclusive to Nigeria."
He illustrated his point with observations of consumption patterns in urban areas, noting, "In places like Lagos and even the nightlife in Abuja, spending habits are evident. The expenditure displayed here surpasses what you would find even in the US."
Fasua proposed that discussions around inequality and strategies to bridge the income gap are more crucial.
"The tax policy is one of our strategies to address this disparity," he affirmed, defending the speed of the reforms by saying that procrastination could jeopardize future generations.
"As the saying goes, the best time to plant a tree was 20 years ago; the second-best time is now," he expressed.
"If we wish for better lives for our children, we cannot defer action."
He also highlighted the improvement in Nigeria's foreign reserves as evidence of positive changes.
"Our foreign reserves have escalated from about $3.5 billion to approximately $46–47 billion," he disclosed.
"The naira is stabilizing now, and we are receiving global acknowledgment for our economic management."
Fasua concluded by advocating for a shift away from pessimistic views.
"We must abandon this notion that things in Nigeria will never improve," he urged.
"Having witnessed the worst, it’s time for growth and enhancement in people’s lives."
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