Tinubu Faces Structural Challenges in Nigeria's Economy

Upon assuming office on May 29, 2023, President Bola Ahmed Tinubu faced deep structural challenges in Nigeria, which had accumulated over decades. The country was grappling with severe fiscal constraints, as a large portion of government revenue was allocated to servicing debt, limiting investment in essential public services.

The petroleum subsidy, initially intended to support consumers, had become a significant fiscal burden, absorbing vast public resources and benefiting higher-income consumers disproportionately. Additionally, the foreign exchange market was distorted by multiple exchange-rate windows, leading to difficulties for businesses in obtaining foreign currency and discouraging investment.

Nigeria's oil production, crucial for public revenue, was also under pressure due to pipeline vandalism, crude theft, and years of underinvestment, further straining government earnings at a critical time.