Praise across the aisle is rare in politics. More frequently than not, political actors are conditioned to view every policy thru partisan lenses, applauding only what their political parties initiate and dismissing the achievements of others. Hence the recent assessment of President Bola Ahmed Tinubu’s economic reforms by the Governor of Anambra State, Professor Chukwuma Charles Soludo, a governor elected on the platform of the All Progressives Grand Alliance (APGA) deserves serious national reflection.
Governor Soludo is not of the ruling All Progressives Congress (APC). He is a member of the All Progressives Grand Alliance (APGA), a party that has always kept its independent political identity. More importantly, he governs Anambra State in the Southeast, the geopolitical zone where President Tinubu got the least electoral support in the 2023 presidential election. If there was any region in which political incentives would favor criticism instead of commendation of the Federal Government, it would certainly be the Southeast.
But addressing investors and policymakers at the Delta State Economic and Investment Summit, Soludo provided an analysis that transcended political sentiments. He declared that Nigeria’s economy, under the leadership of President Bola Ahmed Tinubu had stabilized and “turned the corner” pointing to stronger macroeconomic fundamentals, rising foreign exchange reserves, greater investor confidence and improved fiscal stability.
This was not the language of a friendly partisan. It was the considered judgment of one of Nigeria’s most distinguished economists. That distinction is important.
Prof. Soludo is not just a sitting governor. A former Governor of the Central Bank of Nigeria (CBN), he is one of Nigeria’s most respected economic technocrats, whose contributions to banking consolidation are part of Nigeria’s modern economic history. When such a person says nice things about macroeconomic reforms, his words are naturally taken more seriously than mere political rhetoric.
His intervention deserves attention not because it suggests Nigeria’s economic journey has been completed, which it clearly has not, but because it recognizes that difficult structural reforms are beginning to yield measurable results.
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The economy faced one of its biggest challenges when President Tinubu assumed office in May 2023, with mounting fiscal pressures, declining investor confidence, multiple exchange rate distortions, ballooning subsidy costs, dwindling public revenues and unsustainable debt obligations. State governments faced mounting demands for infrastructure, healthcare, education and security, but many struggled to meet basic obligations.
The warning signs were there. Public finances had become more and more constrained. Recurring obligations and unsustainable subsidy payments were consuming resources that should have been invested in development.
The tough choices that followed were never going to be politically popular. Cutting fuel subsidies caused immediate hardship. The reforms of the exchange rate created inflationary pressures at the beginning.
Many Nigerians wrestled with a question: Would the pain ever be transformed into something positive? Such enormous economic reforms seldom bring immediate comfort. They are meant to correct structural distortions that have accumulated over many years. Their benefits come gradually.
There are now increasing signs that those difficult choices are beginning to restore macroeconomic stability. Exactly what Soludo admitted.
His reference to Nigeria’s stronger foreign exchange reserves, reportedly rising to about $52 billion, is more than a numerical upgrade. Healthy reserves build a country’s ability to withstand external shocks and reassure investors, stabilize the currency and improve confidence in the broader economy.
His observation of exchange rate predictability is equally important. Businesses flourish when economic policies are predictable. Investors invest money where uncertainty is less.
Manufacturers are better equipped to plan production when foreign exchange markets become more transparent. Better market confidence is good for importers, exporters and financial institutions.
These developments will not solve all economic challenges immediately. But they are important building blocks. Perhaps the most important part of Soludo’s comments is on the fiscal health of Nigeria’s states.
For decades, many subnational governments relied heavily on monthly allocations from the Federation Account Allocation Committee (FAAC), often having to balance the need to finance infrastructure with the need to pay salaries and pensions.
The Federal Government’s reforms have fundamentally changed this fiscal landscape. The higher revenues accruing to states have created greater fiscal space for them. Governors in Nigeria now have a greater capacity to execute capital projects, improve public services and invest in critical infrastructure across Nigeria.
Road building is underway. Healthcare facilities are being increased. More agricultural investments. Educational infrastructure is getting a second look.
Although governance outcomes will naturally differ from one state to another, the enhanced fiscal environment has certainly bolstered the financial capacity of many state governments.
This is not a partisan assertion. This is reflected in the financial realities facing subnational governments. Notably, Soludo himself cited Anambra as a case study in sound fiscal management, observing that his administration has not resorted to borrowing to pay salaries or meet routine obligations.
He makes a good point there. Opportunities for federal reforms.
The effectiveness with which those opportunities are used is determined by the state governments. The importance of fiscal discipline at the subnational level remains.
Another reason that Soludo’s endorsement has unusual credibility is his professional background. He knows monetary policy, exchange rate dynamics, fiscal sustainability and macroeconomic management far more deeply than the average political commentator, being a former CBN Governor.
President Tinubu’s reforms have created important momentum. The next phase now is turning improved fiscal stability into inclusive economic growth that reaches households in every community.
History shows that good economies are built thru difficult reforms, patient implementation and institutional consistency. Few countries achieve sustainable development without confronting painful structural weaknesses.
Ultimately, the intervention by Governor Soludo offers an important lesson for Nigeria’s political class. Partisan rivalry should never be allowed to become a casualty of national development. Responsible leaders should acknowledge progress when objective evidence shows progress, regardless of political affiliation.