Nigerian Presidency Rebukes NYT’s ‘Derogatory’ Report, Says “Tinubu Inherited Dead Economy”

The Federal Government of Nigeria has responded robustly to what it terms the “predetermined, reductionist, derogatory, and denigrating” portrayal of Nigeria’s economic situation by foreign media outlets, specifically respecting a recent scathing New York Times (NYT) feature on President Bola Tinubu’s government.

The article, titled “Nigeria Confronts Its Worst Economic Crisis in a Generation,” has been described by Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, as a “jaundiced” narrative reflective of foreign media establishments’ broader negative bias against African nations.

In the strongly-worded rejoinder, Onanuga accused the NYT of painting an unduly grim picture by focusing on the adverse experiences of some Nigerians amidst last year’s inflationary pressures, without adequately acknowledging the positive measures being implemented by the government. He argued that the report’s selective focus on economic hardship overlooked the “ameliorative policies” introduced by the central and state governments to mitigate these challenges.

“The report is at best jaundiced, all gloom and doom, as it never mentioned the positive aspects in the same economy as well as the ameliorative policies being implemented by the central and state governments,” Onanuga remarked.

Onanuga noted that President Tinubu inherited significant economic difficulties, describing the situation as akin to managing a “dead economy” that required urgent interventions to prevent collapse. Among the critical measures taken by the Tinubu administration were the abolition of the fuel subsidy regime in May/June 2023 and the unification of multiple exchange rates. These steps were deemed necessary to restore fiscal discipline and attract investment.

“For decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens,” Onanuga stated.

The presidential aide defended the government’s reforms, acknowledging the initial turbulence they caused, including the naira’s depreciation to N1,900 per dollar.

“President Tinubu had to deal with the cancer of public finance on the first day by rolling back the subsidy regime and the generosity that spread to neighboring countries. Then, his administration floated the naira,” he said.

However, he expressed optimism that stability was being gradually restored, predicting that the currency could recover to N1,000-N1,200 by the end of the year. Onanuga cited increasing foreign portfolio investment, a Q1 2024 trade surplus of N6.52 trillion, fresh loans from multilateral lenders, and significant investment commitments as evidence of renewed investor confidence stemming from the reforms. He cited the recent World Bank’s $2.25 billion loan and other loans by the AfDB and Afreximbank, as evidence that Nigeria has become bankable again.

While acknowledging that food inflation remains a significant challenge, Onanuga detailed the government’s efforts to boost domestic agricultural production. These measures include fertilizer subsidies, incentives for dry-season farming, and various state-level interventions. He asserted that these policies would soon tame inflation, particularly food inflation.

Onanuga also highlighted that Nigeria is not alone in facing a cost-of-living crisis, noting that similar issues have impacted Western nations like the U.S. He assured that the Tinubu administration is diligently working to reverse the country’s economic woes and expressed confidence in overcoming the current difficulties.

“Our country faced economic difficulties in the past. Just like we overcame then, we shall overcome our present difficulties very soon,” Onanuga concluded.

This robust defense is not new for the Nigerian government, which has a history of issuing swift rebuttals to negative foreign media reports. For instance, in October 2021, The Economist published a scathing cover story about the administration of former President Muhammadu Buhari. The piece highlighted numerous governance failures, including insecurity, economic mismanagement, and corruption. The Presidency quickly responded in a rebuttal titled, “Economist’s flawed anti-Nigeria cover”, defending its record and dismissing the criticisms as biased and unfounded.

“The Economist is correct: Nigeria faces multiple threats. They confluence now not because of this government; but on the contrary, it is this government which is addressing them concurrently, and simultaneously – when no other prior administration sought to adequately address even a single one,” Garba Shehu, Media Adviser to President Buhari, said.

Despite these rebuttals, the Buhari administration failed to address the issues raised by The Economist. The continued insecurity, economic challenges, and corruption during Buhari’s tenure have contributed to the current economic difficulties Nigeria faces today. Many Nigerians view these rebuttals as a diversion from substantive action, leading to skepticism about the current administration’s ability to deliver real change.

The Presidency’s rebuttal to the NYT report underscores the administration’s frustration with what it perceives as biased reporting by international media. It also reflects the broader narrative of resilience and optimism that the government wishes to project amidst ongoing economic challenges.

However, the consistent pattern of defensive responses without addressing underlying issues, as seen during the Buhari administration, raises concerns about the effectiveness of these rebuttals. Many Nigerians are hoping that the Tinubu administration will not follow in the same footsteps and will instead take concrete actions to address the country’s economic challenges.