Prince Adewale Adebayo, the former Social Democratic Party (SDP) presidential hopeful, has acknowledged that President Bola Tinubu’s administration has made some financial progress compared to the tenure of former President Muhammadu Buhari, especially in areas like revenue generation and fiscal management.
Speaking on Channels Television’s ‘Politics Today’ on Tuesday evening, Adebayo cautioned that despite these positive steps, the Tinubu government has yet to fully understand and address the root causes of Nigeria’s economic challenges.
“The economy inherited from President Buhari was in a dire state, akin to a patient in critical condition. Recovery depends on an accurate diagnosis by the physician. Only by understanding the illness can the right treatment be administered,” Adebayo explained.
He compared Tinubu’s economic stewardship to a doctor who has managed to stabilize a critically ill patient but has not yet identified the underlying disease.
“President Tinubu has succeeded in stabilizing the economy, but it remains unclear if he has pinpointed the fundamental issues. The patient is not at immediate risk of collapse, yet no definitive cure has been found. While some emergency measures have been taken, a few have even worsened the situation. There have been isolated successes in certain sectors, which might create the illusion that recovery is underway,” he added.
Adebayo highlighted that one of Tinubu’s notable accomplishments is the increase in government revenue alongside a reduction in domestic borrowing compared to the Buhari administration.
“Revenue collection has improved in nominal terms, and the heavy reliance on domestic borrowing seen under Buhari has lessened. However, due to some misguided policies, the actual purchasing power of these revenues falls short of what is needed to fund government operations and infrastructure projects. Nonetheless, Tinubu has managed to present a healthier fiscal balance sheet than what he inherited,” he noted.
He also mentioned the revision in inflation measurement as a factor contributing to the perception of economic improvement.
“Another element influencing the outlook is the rebasing of inflation figures, which means inflation is now calculated differently. When they report a drop from around 21 percent to about 20 percent, it may not reflect genuine economic improvement but rather a change in methodology. The true impact of this will become clearer by the first quarter of next year when the 2025 budget is implemented. Since that budget is not yet in effect, the macroeconomic picture remains uncertain,” Adebayo explained.
The SDP leader further observed that while a decrease in food inflation has helped lower the overall inflation rate, the average Nigerian has yet to experience tangible relief.
“The main driver behind the headline inflation decline is a modest reduction in food prices. However, this decrease is not significant enough for ordinary citizens to feel any real benefit,” he said.
In conclusion, Adebayo assessed that although the economy is not deteriorating compared to last year, it remains far from achieving its potential.
“In summary, the economic indicators suggest that the situation is stable but still distant from where it should ideally be,” he concluded.
