Otedola praises Tinubu reforms and cites stronger market indicators

Businessman and First HoldCo chairman Femi Otedola has praised President Bola Tinubu’s economic reforms, saying they have placed Nigeria on a path of sustainable growth. Otedola made the comments in Paris on Monday during a private dinner with Tinubu, who was completing a 28-day working visit in Europe. He cited Nigeria’s inclusion of major companies in the FTSE Russell Frontier 50 Index, gains in the Nigerian Exchange, increased foreign direct investment and improved foreign-exchange stability.

He also pointed to external reserves reported at about $55bn. Otedola described these developments as evidence of renewed economic confidence and credited the administration’s reforms for the changes. Since Tinubu took office in May 2023, the government has removed petrol subsidies and unified multiple foreign-exchange windows into a single market-driven system.

The source said the subsidy reform was intended to reduce pressure on public finances and attract investment. The measures have also produced significant costs. The report said the removal of subsidies has contributed to higher energy, transport and food prices.

The naira’s devaluation and the foreign-exchange changes have likewise fuelled inflationary pressures, even as the government has presented them as steps towards improving investment conditions. FTSE Russell recently restored Nigeria to frontier-market status after a three-year period in which it was classified as unclassified. Companies listed in the index include Dangote Cement, First HoldCo, MTN Nigeria, GTCO, Nestle Nigeria, Nigerian Breweries, Stanbic IBTC Holdings, Aradel Holdings, Presco and Zenith.

The source said inclusion gives the companies wider visibility among international investors. It did not provide independent assessments of the reforms’ overall effect or confirm Otedola’s claims about the economy beyond the indicators cited in his remarks.