Dr. Tanimu Yakubu, the Director General of the Budget Office of the Federation, addressed the ongoing economic situation in Nigeria. He emphasized that the nation is undergoing a “deliberate reform process” rather than an economic collapse.
According to Yakubu, the current hardships are an unavoidable “correction” of long-standing structural issues that have weakened the economy for years.
Yakubu outlined several reasons why the government views the current distress as a transition toward stability rather than a systemic failure.
He argued that past policies, such as fuel subsidies and multiple exchange rate windows, created a facade of stability while draining national resources and encouraging “arbitrage” (profit-making without production) over real economic growth.
He noted that countries in a state of true collapse do not successfully unify exchange rates or rebuild foreign reserves (which have reportedly risen above $40 billion). He alse stated that the country had regained access to international capital markets.
Since the removal of the fuel subsidy, revenues shared under the Federation Account have reportedly risen by over 40% due to reduced leakages and better remittance practices.
He described Nigeria’s public debt as “moderate,” remaining below 30% of the Gross Domestic Product (GDP).
The government’s stance rests on the distinction between a system breaking down and a system being intentionally dismantled to be rebuilt.
Yakubu acknowledged that the public’s frustration is justified, but he urged Nigerians to see the “distress” as a temporary phase. The administration’s narrative is that the “true cost” of running the system is finally being exposed, and while this causes immediate pain, it is the only way to restore global confidence and ensure a functional economy in the long run.
This sentiment was echoed by the Minister of Information, Mohammed Idris, who recently dismissed claims that the country is on the “brink,” citing recent improvements in security and Nigeria’s reclassification as a Frontier Market by FTSE Russell as signs of recovery.
