President Bola Ahmed Tinubu has asserted that the government alone cannot forge a trillion-dollar economy, emphasising that genuine wealth creation is the domain of enterprises, investment, and manufacturing. He articulated his administration's economic philosophy, stating that prosperity is achieved through production rather than taxation, as the government works to streamline taxes and eradicate the problem of multiple taxation.
"Produce Our Way There, Not Tax Our Way There"
Speaking at the launch of the book, "Economic Diversification and Structural Transformation in Nigeria: The Past, The Present, The Future," authored by House of Representatives member Abdulmumin Jibrin Kofa, President Tinubu, represented by Speaker Tajudeen Abbas, underscored his belief. "We cannot tax our way into prosperity; we must produce our way there," he declared, highlighting a fundamental shift in economic strategy.
Inherited Economic Challenges and Bold Reforms
President Tinubu recounted the formidable economic challenges he inherited upon assuming office. These included "a gathering storm" characterised by a depreciating naira, debt servicing that consumed nearly all government revenue, depleted foreign reserves, an exorbitant fuel subsidy draining the treasury, and a landscape of silently failing factories leading to industrial decline and job losses. Faced with two stark choices—"the comfortable road of cosmetic remedies that had led us to the edge of the cliff" or "the hard road of surgery to save the patient"—the President affirmed his decision to pursue comprehensive reform.
He stated, "We chose reform over ruin. We removed the fuel subsidy. We unified the exchange rate. These were not easy decisions, and I know the weight they placed on every household. But they were necessary, and today the pain is yielding its promise."
Tangible Results and Future Projections
The President highlighted positive indicators emerging from these reforms. Non-oil activities now contribute approximately 96 per cent to the Gross Domestic Product, and non-oil exports have surpassed six billion dollars, marking an unprecedented high in the nation's history. Furthermore, external reserves have reportedly escalated to around 55 billion dollars, providing over fourteen months of import cover. Non-oil revenue has also witnessed substantial growth, climbing from ₦13.63 trillion in 2023 to ₦16.4 trillion in the first half of the current year alone. President Tinubu reiterated the administration's revised objective: to transition from economic stabilisation to fostering shared prosperity, with a clear trajectory towards achieving a one-trillion-dollar economy by 2030, a target enshrined within the Medium-Term National Development Plan 2026–2030.
Government's Role: Facilitator, Not Creator
Reiterating his core economic philosophy, President Tinubu emphasised that wealth generation is fundamentally driven by enterprises that invest, innovate, manufacture, and export. Consequently, the government's primary responsibility is to "clear the path." He elaborated on the 2025 budget's introduction of a pioneering De-risking Framework, designed to attract private capital, which is projected to supply 86 per cent of the investment required to meet the 2030 economic objective. This initiative, alongside ongoing efforts to harmonise taxes and eliminate multiple taxation, reinforces the administration's commitment to facilitating a production-led economic expansion.
Call for Equitable Distribution of Economic Gains
Concurrently, Dr Reuben Abati, a former Presidential spokesman, issued a cautionary note, urging that the benefits of President Tinubu’s economic reforms must be equitably shared among all Nigerians, rather than being concentrated in the hands of a select few. Abati underscored that the ultimate aim of any economic reform should be the enhancement of citizens' living standards, cautioning that macroeconomic stability devoid of improvements in household welfare could jeopardise the long-term viability of government policies. Reviewing the 526-page book, Abati highlighted that the erosion of purchasing power and the escalating cost of living remain critical concerns arising from the reforms. He suggested that while citizens may be called upon to make sacrifices, resistance could emerge from organised labour, political factions, and ordinary Nigerians struggling with economic hardship. Abati firmly stated, "Certainly, the purpose of reform must not be the enrichment of a privileged minority at the expense of the people’s prosperity."
Book's Focus on Diversification and Reform
In his welcome address, the author, Hon. Jibrin, outlined the book's purpose: to offer an evidence-based account of past missed opportunities and the current administration's ongoing initiatives to liberate the economy from its singular reliance on oil as the primary source of foreign exchange. "It is my vision that Nigeria will be transformed from an oil-dependent economy into one with a well-diversified economic structure and a resilient economy, ultimately becoming a society whose productivity is built on a solid foundation," Jibrin articulated. The publication examines previous administrations' attempts at economic diversification and the current government's focus on key reforms such as subsidy removal, foreign exchange unification, and tax system overhauls. Jibrin stressed the imperative of unlocking the vast potential of non-oil sectors, including agriculture, technology, solid minerals, industrial manufacturing, and the creative industries, for the nation's future macroeconomic prosperity. He noted that his perspectives are uniquely informed by extensive legislative and practical engagement through his service across multiple assemblies as Chairman of various House Committees, including Finance, Appropriations, Land Transport, Foreign Affairs, and Housing and Habitat.