The Bola Tinubu government has announced that the prices of foodstuffs and other essential commodities may never revert to their levels before the removal of fuel subsidies, despite ongoing economic reforms intended to stabilise the economy.
Sunday Dare, Tinubu’s Special Adviser on Media and Public Communication, disclosed this in a statement on Thursday.
Dare noted that although Nigerians have experienced economic hardship following the removal of fuel subsidies, key indicators suggest that the economy is gradually recovering.
The removal of fuel subsidies in May 2023 led to an immediate surge in inflation, as the cost of transportation, goods, and services skyrocketed. The impact was felt across all sectors, with food prices experiencing the sharpest rise.
Many Nigerians have since struggled with the high cost of living, prompting calls for government intervention.
The Tinubu administration has defended its economic policies, insisting that ongoing reforms in the oil sector and the shift towards local refining have started yielding positive results.
READ MORE:MKO Abiola Won June 12 Election—IBB Reveals
Nigeria’s crude oil production has reportedly exceeded its quota, now standing at 1.75 million barrels per day, reducing dependence on petroleum imports and alleviating pressure on foreign exchange.
The government also cited a recent Bloomberg Africa report, which acknowledged that “Nigeria’s fortunes appear to be looking up after nearly two years of painful economic reforms and investors are taking notice.”
The report further suggested that Nigeria could regain its status as Africa’s largest economy when rebased Gross Domestic Product (GDP) figures are released next month, potentially pushing the GDP close to $500 billion.
While acknowledging the difficulties Nigerians have faced, Dare maintained that the reforms were necessary for long-term economic stability.
“Under Tinubu’s watch, we are seeing the headwinds abating and a new economic tailwind in favour of economic reforms,” he said.
Follow Parallel Facts on WhatsApp Channel:https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
