In the last quarter of 2024, Nigeria’s 72-year-old President Bola Tinubu signed several bilateral trade agreements with governments and companies, looking to increase investment in the oil and gas-rich West African nation, whose 220 million people were feeling the pinch of his “necessary and bold’’ reforms.
The target countries were China, India, Brazil, France, Saudi Arabia and United Arab Emirates (UAE).
The Nigerian economy had been on drip blamed on the President’s economic reforms, which saw the removal of the fuel subsidy and the harmonisation of the foreign exchange market.
While the removal of the fuel subsidy caused more than 550 percent increase in the price of a litre of petrol, the harmonisation of forex market caused almost 480 percent devaluation of the national currency, the Naira.
These twin policies have been blamed for a spiralling inflation which, according to the National Bureau of Statistics’ latest report, rose for the third straight month in November 2024, to a near 30-year high of 34.6 percent, from 33.9 per cent in the previous month, with food inflation surging to 39.93 percent in November 2024, compared with 32.84 percent in November 2023.
President Tinubu had explained that economic reforms were the way to go in a country that had been impecunious, yet spending more than 70 percent of its revenue on debt servicing and more billions in petrol subsidy, supporting the local currency against the dollar in a forex exchange market characterised by corruption.
Tinubu explained that the policies freed the monies the country was spending on unproductive economic ventures that crippled the economy and impacted the living standards of the people.
As outrage greeted the policies, he said the pains would be over soon, as the economy was turning the corner to prosperity.
But he has become desperate in efforts to fast-track the recovery programme and ease the “T-Pain’’ (Tinubu Pain) which his allies call “Temporary Pain.’’
In his New Year’s message, President Tinubu conceded that 2024 posed numerous challenges to the citizens and households but expressed confidence that the New Year would bring brighter days.
“Economic indicators point to a positive and encouraging outlook for our nation, fuel prices have gradually decreased, and we recorded foreign trade surpluses in three consecutive quarters. Foreign reserves have risen, and the Naira has strengthened against the US dollar, bringing greater stability,” he said.
“The stock market's record growth has generated trillions of naira in wealth, and the surge in foreign investment reflects renewed confidence in our economy. Nevertheless, the cost of food and essential drugs remained a significant concern for many Nigerian households in 2024.”
“In 2025, our government is committed to intensifying efforts to lower these costs by boosting food production and promoting local manufacturing of essential drugs and other medical supplies. We are resolute in our ambition to reduce inflation from its current high of 34.6 percent to 15 percent.”
The government, he said, would establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.
“This initiative will strengthen the confidence of the financial system, expand credit access, and support under-served groups such as women and youth. It will drive growth, re-industrialisation, and better living standards for our people. We will continue to embark on necessary reforms to foster sustainable growth and prosperity for our nation.’’
Tinubu in 2024 intensified courting well-heeled countries for more investments in Nigeria to stimulate the economy, even as he instituted domestic measures, including increasing the minimum wage from $19 (₦30,000) to $44 (₦70,000), the student loan scheme, the consumer credit scheme, rehabilitation of four state-owned petroleum refineries, liquidation of forex organisations, mechanised agriculture and creation of the Livestock Development ministry.
He also embarked on massive housing schemes dubbed Renewed Hope Housing, besides the legacy projects, including highways. India Prime Minister Narendra Modi visited Abuja on November 17, 2024 and signed several mouth-watering deals.
With more than 60,000 Indians and more than 200 companies in Nigeria, Modi described the Indian community as an important link between the two countries.
The two leaders witnessed the signing of memoranda on cultural exchange, customs matters and collaboration between the surveyors-general of India and Nigeria.
Modi brought into Nigeria, 20 tonnes of humanitarian aid to support flood victims and also signed deal to bolster defence, counter-terrorism, maritime security, technology and economic development.
In September 2024, Nigeria and China agreed to on various agreements, which Abuja hoped would result in job creation, economic growth, and improve living standards.
President Tinubu's visit to China resulted in several landmark agreements, marking a significant shift in bilateral relations to deepen economic cooperation, improve infrastructure, and foster trade ties all in the areas of energy, transportation, and technology.
The deals included the Currency Swap Agreement, which would allow the Central Bank of Nigeria and the People's Bank of China to exchange currencies to facilitate trade and investment without relying on the US dollar. This is to increase liquidity in the Nigerian market, ease trade transactions, and reduce pressure on foreign exchange reserves.
The deal would see the availability of the Chinese yuan for Nigerian businesses, facilitating smoother transactions between them and Chinese counterparts.
The Mining and Solid Minerals Cooperation was another deal meant to diversify Nigeria's economy beyond oil, focusing on mining and solid minerals exploration, especially in untapped gold, tin and columbite.
Chinese tech giants Huawei and ZTE are expected to play a pivotal role in deploying 5G networks across Nigeria, improving broadband access, and expanding digital inclusion.
In the aftermath of President Tinubu’s visit to Saudi Arabia, Finance minister Wale Edun announced Salic International Investment Company’s acquisition of a 35.43 percent stake in Olam Agri Holdings for a substantial $1.24 billion, marking a significant boost to Nigeria’s agricultural and livestock sector.
“The deal, which closed on December 23, 2024, values Olam Agri Holdings at $3.5 billion. Olam Group retains a controlling 64.57 percent stake in the agricultural unit,’’ he said.
Saudi Exim Bank also agreed to focus on developing export credit and insurance frameworks, and expanding market access between the two nations.
In Brazil, Nigeria was admitted into the Global Alliance Against Hunger and Poverty initiative, championed by President Lula da Silva.
Nigeria’s Ministry of Agriculture and Food Security, and Fundação Getulio Vargas of Brazil, signed an MoU to advance private sector development in fertiliser production, hybrid seed technology, and agricultural finance.
President Tinubu and his French counterpart, Emmanuel Macron, also “deepened” bilateral relations by signing two critical agreements aimed at fostering infrastructure development and food security.
According to a statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, United Bank for Africa (UBA) Group Chairman Tony Elumelu and Antoine Armand, French Minister of Economy, Finance and Industry signed a deal for the bank to start operations in Paris.
Zenith Bank also inaugurated its services in France.
TotalEnergies announced it would spend $550 million in upstream gas project with the Nigeria National Petroleum Corporation.
The African Development Bank (AfDB) has also reported that Nigeria would receive $2.2 billion to support Agro-Industrial development in 2025.
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