Otedola praises Tinubu reforms as economy shows recovery signs

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 on a working vacation in Europe. He cited Nigeria’s return to FTSE Russell’s Frontier 50 Index, gains in the Nigerian Exchange, increased foreign direct investment and what he described as a more stable foreign-exchange market.

He also pointed to foreign reserves of about $55 billion. Nigeria was restored to frontier-market status after three years of being classified as an unclassified market. The change brought major companies including Dangote Cement, First HoldCo, MTN Nigeria, GTCO, Nestle Nigeria, Nigerian Breweries, Stanbic IBTC Holdings, Aradel Holdings, Presco and Zenith into the FTSE Frontier Index Series.

The inclusion is expected to give the listed companies greater visibility among international investors than their primary listings on the Nigerian Exchange in Lagos. The report said reserves had crossed $55 billion, the highest level in more than 18 years. Tinubu’s government has pursued measures aimed at economic recovery, growth and stabilisation since taking office in May 2023.

These include the removal of petrol subsidies, which the report said had placed a major burden on public finances but also increased energy, transport and food costs. The government has also unified the foreign-exchange market by replacing multiple exchange-rate windows with a market-driven system. The naira was sharply devalued as part of the reform programme, a move intended to encourage investment but which has also contributed to inflationary pressure.

Otedola described the reforms as bold and forward-looking. The source material records his positive assessment but also notes that the measures have had a significant cost-of-living impact, with prices remaining unusually high for households.