Shettima: Tinubu’s Reforms Averted Economic Collapse as Government Plans New Relief Measures

Vice President Kashim Shettima has defended President Bola Tinubu’s economic policies, arguing that the administration inherited an economy at serious risk of collapse and that some of its most controversial reforms were necessary to prevent an even deeper crisis.

Shettima made the assertion in Lagos on Saturday after meeting with President Tinubu, using the occasion to defend the government’s record while acknowledging the economic pressure still facing millions of Nigerians.

According to the Vice President, Nigeria’s foreign reserves were below $3.9 billion when the Tinubu administration took office in May 2023. He argued that the level of reserves was insufficient to cover even one month of fuel imports and illustrated the severity of the economic challenges confronting the new government at the time.

Shettima defends fuel subsidy removal, exchange-rate reforms

At the centre of Shettima’s defence are two major decisions taken early in the Tinubu administration: the removal of the petrol subsidy and the unification or realignment of multiple foreign-exchange rates.

Both policies were presented by the government as measures designed to address structural weaknesses in public finances and the foreign-exchange market. However, they also triggered significant short-term economic consequences, including higher transportation and living costs and increased pressure on household incomes.

Shettima said the decisions required political courage, insisting that Tinubu’s administration acted because the alternative was allowing existing economic problems to become significantly worse.

“The economy was actually on the verge of collapse,” the Vice President said, maintaining that Tinubu’s reforms prevented Nigeria from reaching that point.

He further compared the trajectory Nigeria was allegedly following before the reforms to a journey “to Caracas”, using the reference to underscore his argument that the country was heading towards severe economic deterioration.

Government acknowledges hardship facing Nigerians

While strongly defending the reforms, Shettima also acknowledged that Nigerians continue to experience considerable economic hardship.

The removal of the fuel subsidy and changes to the foreign-exchange system have been accompanied by higher prices for transportation, food and other essential goods. For many households, the increase in the cost of living has made the benefits of longer-term economic reforms difficult to feel in everyday life.

Shettima said the government was aware of the hardship and was working on programmes intended to reduce its impact.

He maintained that the current difficulties should be viewed as part of a difficult adjustment period rather than evidence that the reforms had failed.

The Vice President also expressed confidence that the hardship would not persist indefinitely, saying the government was preparing additional interventions aimed at easing pressure on ordinary Nigerians.

New transport initiatives planned for North-West, North-East

Shettima announced that several initiatives were expected to be introduced in the coming weeks.

Among them is an e-logistics programme planned for the North-West, which the government says is intended to support transportation and logistics activity in the region.

He also announced plans for the deployment of 10,600 electric tricycles in the North-East, alongside 300 buses and e-taxis.

The initiatives are being presented as part of broader efforts to reduce transportation-related pressures and provide practical relief as the country adjusts to higher energy and operating costs.

The effectiveness of the programmes, however, will ultimately depend on implementation, accessibility and whether the benefits reach the households and businesses most affected by the cost-of-living crisis.

Tinubu administration faces competing assessments of the economy

The latest defence from the Vice President comes amid an increasingly political debate over whether the administration’s reforms are producing the promised economic recovery.

The Tinubu government has consistently argued that reforms such as fuel-subsidy removal and foreign-exchange restructuring were unavoidable steps towards creating a more sustainable economy.

Opposition politicians have offered a sharply different assessment.

Former Vice President Atiku Abubakar, now associated with the African Democratic Congress (ADC), has accused the administration of worsening poverty since taking office in 2023.

Peter Obi of the Nigeria Democratic Congress (NDC) has similarly criticised the government over what he describes as worsening hunger, insecurity and economic hardship.

The disagreement therefore extends beyond individual economic indicators. It reflects two competing interpretations of Nigeria’s current economic situation: the government’s argument that painful reforms were necessary to stabilise the country, and the opposition’s position that the reforms have imposed excessive costs on citizens without delivering sufficient improvements in living standards.

Why the debate matters

The argument over Tinubu’s reforms is likely to remain central to Nigeria’s political and economic conversation.

For the government, the key question is whether improved macroeconomic stability, stronger foreign reserves, increased investment and other structural gains can eventually translate into lower inflation, better employment opportunities and improved household purchasing power.

For Nigerians dealing with high food prices, transportation costs and reduced disposable income, however, long-term economic arguments may matter less than whether their immediate living conditions improve.

This makes the government’s planned relief programmes particularly important. The success of the e-logistics initiative, electric tricycles, buses and e-taxis will be judged not only by the number of vehicles deployed but by their affordability, availability and measurable effect on transportation costs.

What happens next

The Federal Government is expected to proceed with the announced transport interventions while continuing to defend the broader economic reform programme.

The administration will also face increasing pressure to demonstrate that economic stabilisation is translating into tangible improvements for households and businesses.

For Nigerians, the key indicators to watch include the direction of inflation, food prices, foreign-exchange stability, petrol availability and pricing, transportation costs, employment and household purchasing power.

As the Tinubu administration enters another phase of its economic programme, the central test will be whether the reforms defended by the government as necessary to prevent collapse can ultimately produce an economy in which ordinary Nigerians experience meaningful improvements in their daily lives.