The presidency sharply criticizes foreign media for “yellow” portrayal of economic problems

The presidential authorities have responded to what they called the “predetermined, reductionist, demeaning and denigrating” manner in which foreign media have reported on the country’s current economic situation under the new government of President Bola Tinubu.

In a strongly worded rejoinder, Bayo Onanuga, special adviser to President Tinubu on information and strategy, slammed a recent New York Times article titled “Nigeria faces worst economic crisis in a generation” as “yellow” reporting that reflects the typical negative attitude towards African nations.

Onanuga accused the NYT of painting an overly gloomy picture based on interviews describing the tragic experiences of some Nigerians in the face of last year’s inflation, while at the same time omitting the positive aspects of the government’s actions and policies to mitigate the effects of the crisis.

“The report is jaundiced at best, full of gloom and doom, as it never mentioned the positive aspects of the same economy or the moderating policies being implemented by the central and state governments,” he said.

The presidential adviser stressed that Tinubu did not cause Nigeria’s economic problems but inherited them, likening it to a “dead economy” that requires urgent interventions to prevent total collapse.
He defended the government’s decision in May/June 2023 to abolish the fuel subsidy system, which cost $84.39 billion between 2005 and 2022, and to unify many currency exchange rates – actions he said were crucial to restoring fiscal discipline and attracting investment.

“For decades, Nigeria has maintained a fuel subsidy system that has sucked up $84.39 billion… from the national treasury in a country with huge infrastructure deficits and in dire need of better social services for its citizens,” Onanuga said.

He added that by keeping the naira overvalued against the dollar, the previous government enabled arbitrage that enabled fraud while failing to honor remittance obligations, which limited the inflow of foreign direct investment.

According to Onanuga, although the initial economic shocks were turbulent and the naira fell to N1,900 per dollar, stability is gradually being restored. The currency may recover to N1,000-1,200 by the end of the year.

He cited an increase in foreign portfolio investment, a trade surplus of N6.52 trillion in the first quarter of 2024, new borrowings from multilateral lenders and multi-billion dollar investment commitments as signs of renewed investor confidence resulting from the reforms.

The Presidency acknowledged that food inflation remains the main challenge. Still, it said the government was implementing policies to boost domestic agricultural production, including fertilizer subsidies, dry season crop incentives and state-level interventions.

“With the implementation of all plans, inflation, especially food inflation, will soon be brought under control,” Onanuga assured.

He argued that while Nigeria is not alone in facing the cost of living crisis that has also affected Western countries such as the United States, the Tinubu administration is working hard to address the economic woes, expressing confidence that “we will overcome the present difficulties very soon.”

In his farewell photo, the president’s adviser stated: “Our country has faced economic difficulties in the past… Just as we overcame them then, we will soon overcome the present difficulties.”