In his speech marking Nigeria’s 64th Independence Day, President Bola Tinubu claimed that had attracted over $30 billion in FDI over the past year. He attributed this success to his administration’s economic reforms, which have made Nigeria a more attractive destination for investors.
These investments, he explained, would help fuel critical sectors such as infrastructure, technology, and industry, driving long-term economic growth
His address touched upon pressing national issues such as economic reform, security improvements, foreign investment, and youth empowerment. The President did not however give details of the FDI inflows.
In 2023, Nigeria ranked eighth among the top ten African countries attracting foreign investment, securing $1.8 billion. A lethal cocktail of policies has driven infation sky high and reduced purchasing power, thus making the Nigerian market less attractive. The government of former President Muhammadu Buhari financed large budget deficits through money printing—referred to as “Ways and Means”—which ballooned to N27 trillion and maintained an artificially high foreign exchange rate which deterred investment and forex inflows while perpetuating scarcity. Many multinational companies have reduced their investments or exited the Nigerian market.
Economic reforms under President Tinubu has been halting; the administration has not been able to make or signal a sharp break with the policies of the Buhari era. Forex reforms wavered between a clear transition to a market-determined exchange rate and a regime of controls, between acknowledging policy failures for the naira’s instability and a “security approach” focusing on criminals and saboteurs. This contributed to a 70% devaluation of the naira in the last 15 months.
More critically, the Tinubu administration has yet to tackle excessive spending, a point emphasized by Central Bank of Nigeria Governor Olayemi Cardoso during the September 2024 Monetary Policy Committee meeting, where he noted that monetary policy tools alone are insufficient to stabilize the currency.
The CBN Governor noted that the monthly allocation of revenues by the federal government to Nigeria’s 36 states contributes to excessive liquidity in the banking system, implying very clearly that a significant proportion of the funds released to the states (in naira) is used to purchase forex, thus driving up the exchange rate.
Economic Reforms and Challenges
President Tinubu began by acknowledging the economic difficulties facing Nigerians, particularly the rising cost of living, inflation, and unemployment.
He recognized that many Nigerians have expressed frustration over the slow pace of change, but he assured the nation that the reforms his administration has implemented are beginning to take effect.
He stated, “I want to assure you that your voices are heard… we are beginning to see light at the end of the tunnel.”
Tinubu underscored that these reforms were necessary to fix long-standing structural issues within the economy, even though the benefits may take time to materialize
One of the key economic achievements mentioned was a reduction in Nigeria’s debt service ratio, which has decreased from 97% to 68%.
This represents progress in stabilizing the nation’s finances, especially in light of the enormous debts the administration inherited.
Tinubu also mentioned that his government is committed to maintaining stable foreign reserves.
Security Achievements
The president shifted his focus to security, where he announced notable successes in combating terrorism and banditry, two major concerns that have plagued Nigeria for years.
He revealed that over 300 commanders of Boko Haram and various bandit groups had been neutralized, and peace had been restored in hundreds of affected communities.
This, he stressed, had allowed many internally displaced persons (IDPs) to return to their homes. “Thousands of our people have been able to return home,” he noted, commending the Nigerian security agencies for their efforts to swiftly address these challenges
Energy Transition and Agriculture
Tinubu touched on Nigeria’s ongoing energy transition, particularly the expansion of Compressed Natural Gas (CNG) usage in the public transportation sector.
This, he said, would help lower transportation costs for Nigerians and reduce the nation’s dependence on more expensive and environmentally harmful fossil fuels.
His administration is committed to ensuring that Nigeria plays a leading role in the global shift toward cleaner energy alternatives
In addition to energy reforms, Tinubu highlighted the importance of agriculture, emphasizing his administration’s focus on mechanized farming.
He announced the establishment of a tractor assembly plant aimed at boosting local food production, which would in turn help reduce food costs.
By modernizing Nigeria’s agricultural sector, Tinubu hopes to create more jobs and increase food security across the nation.
Youth Empowerment
Youth empowerment formed a crucial part of the speech, with the president announcing the launch of several initiatives, including a National Youth Conference and the 3 Million Technical Talents program.
These initiatives aim to provide Nigerian youth with the skills and opportunities they need to participate actively in the country’s development.
Additionally, Tinubu mentioned the Nigerian Education Loan Fund, which will provide financial assistance to students, enabling them to pursue higher education without being burdened by debt
Unity and Resilience
In closing, President Tinubu called for national unity and resilience, urging Nigerians to come together in the face of current challenges.
He acknowledged that the road ahead might be difficult, but he expressed optimism about Nigeria’s ability to overcome adversity and achieve greatness.
“We are Nigerians—resilient and tenacious. We always prevail and rise above our circumstances,” he concluded, delivering a message of hope and determination.
President Tinubu’s Independence Day address highlighted the progress made in key areas such as security, the economy, and youth development, while also laying out a roadmap for future growth.
Despite the challenges facing the country, his message was one of optimism, resilience, and collective effort.
