In the face of Nigeria’s worst economic crisis in a generation, one man has stepped forward to defend the controversial reforms introduced by President Bola Tinubu. Abdulsamad Rabiu, the chairman of BUA Group, praised the president’s difficult but necessary economic decisions during a visit to Lagos on Friday.
Rabiu, a key player in Nigeria’s business community, acknowledged the painful impact these reforms have had on businesses and the general populace. Yet, he insisted that they are crucial for the country’s future.
“The reforms are undoubtedly hard,” he said. “But they are necessary if we are to build a stronger, more sustainable economy.”
President Tinubu, who assumed office just over 18 months ago, has been making bold moves to stabilise Nigeria’s economy. One of his first acts was the removal of the petrol subsidy, which had been a heavy financial burden on the government for decades. Alongside this, the naira was devalued, sending inflation soaring to 34.60 percent by November.
The results have been immediately felt across the country. Nigerians are facing soaring prices for everyday goods, with the cost of living climbing higher than ever before. Yet, Rabiu is not disheartened by the temporary pain these measures have caused.
“Yes, it’s tough right now. But these reforms were necessary,” Rabiu explained. “For us in the business community, it’s clear they were needed. Take, for instance, the unification of the foreign exchange market. This was a step in the right direction, even though it’s been challenging.”
The unification of Nigeria’s forex market is one of the key changes implemented by the Central Bank of Nigeria (CBN). Previously, there were multiple exchange rates, with the official rate far below the one offered on the parallel market. This created inefficiencies and a lack of transparency, discouraging investors.
Initially, the unification caused chaos, with the naira’s value plummeting. At one point, the exchange rate hit almost N2,000 to the dollar. However, Rabiu believes that the currency is finding its balance. The naira has now stabilised around N1,500 to N1,550, though it remains weaker than before the reforms.
“I think things are starting to stabilise,” he said. “At first, we saw a big jump in the exchange rate, but now it’s settling. I believe we will see the rate come down even further.”
Rabiu’s optimism mirrors the sentiments of the International Monetary Fund (IMF), which has also welcomed the reforms. The IMF has forecasted faster economic growth for Nigeria, driven by the government’s efforts to reduce inefficiencies and create a more transparent economy.
Alongside the economic reforms, Rabiu also praised the infrastructural changes underway under the Tinubu administration. The government has made significant investments in roads, electricity, and other key areas of infrastructure, and Rabiu believes this will pay off in the long run.
“We can see the changes happening around us,” he said. “There’s a lot of road construction going on, and that’s just one example. The government is working hard to improve the country’s infrastructure, and while it’s taking time, things are getting better.”
Despite the progress, Rabiu acknowledged that the pace of change might be frustrating for some Nigerians. However, he believes patience is essential.
“This government has only been in power for 18 months,” he said. “They still have another 24 months to go, and with time, things will definitely improve.”
His comments come at a time when public opinion about the government’s reforms is divided. Many Nigerians are still struggling with the effects of rising prices and the devaluation of the naira. The cost of petrol, once heavily subsidised, has more than doubled, leading to protests and public outcry.
However, Rabiu is resolute in his support for the president’s vision. He urged Nigerians to remain patient, emphasising that these changes are necessary for long-term stability.
“Yes, there is pain now, but the future will be brighter,” he concluded. “The government is doing a lot, and we must give them time to see the results.”
