President Bola Tinubu said Nigeria lost more than N8tn within three years due to forex arbitrage and speculative activities linked to multiple exchange rate regimes before his administration introduced reforms.
Tinubu disclosed this on Thursday in his nationwide address on the third anniversary of his administration.
The president said the economic situation his government inherited in 2023 was marked by “mounting fiscal pressures, unsustainable fuel subsidies, declining revenues, exchange-rate distortions, rising debt-servicing costs, insecurity in several parts of the country, energy supply constraints, and declining public confidence in institutions.”
According to him, the country’s exchange rate system at the time encouraged rent-seeking and deepened economic distortions.
“Multiple exchange rate windows and forex arbitrage created massive distortions, with Nigeria losing more than ₦8 trillion over three years to rent-seeking and speculative practices,” Tinubu said.
He once again defended his administration’s decision to remove petrol subsidy and introduce foreign exchange reforms. He said the measures are painful but necessary to avert economic collapse.
“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis,” he said.
“The easy choices would have been politically convenient. But leadership demands courage, especially when the right decisions are difficult.”
Tinubu said failure to act would have plunged Nigeria into deeper economic turmoil.
“Had we refused to act, our nation would have drifted toward fiscal breakdown, worsening poverty, and severe economic uncertainty. Together, we chose reform over ruin and decisiveness over hesitation. We chose long-term national recovery over short-term comfort,” he stated.
The president argued that the reforms are already yielding results, citing improvements in public finance, infrastructure development, investor confidence, and capital market performance.
“Our economy is now more competitive and better positioned for sustainable growth than it was in 2023. Public finances are improving. States and local governments have greater resources to invest in their people. Investor confidence is growing,” he stated.
Tinubu added that the Nigerian stock market had witnessed unprecedented growth under his administration.
“The stock market is booming, with the All Share Index rising from 53,000 and market capitalisation of N30 Trillion in 2023 to a record All Share Index of 250,000 and market capitalisation of N160 Trillion this year. Companies are declaring record profits and dividends,” he said.
The president further mentioned ongoing infrastructure projects across the country, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Super Highway, Abuja-Kaduna-Zaria-Kano Road, and the East-West Road.
He said reforms in the oil and gas sector had also attracted fresh foreign investments while local refining capacity was improving energy security and reducing dependence on imported petroleum products.
