The Traffic

A New Era for Nigeria's Economy: From Consumption to Production"

Razaq Ivori 

Nigeria's latest trade figures are a breath of fresh air, signaling a significant shift from a consumption-driven economy to a production-based one. With imports reducing and exports increasing, our economy is expanding, and it's a welcome change.

For the first eight months of 2024, our imports stood at ₦24.44 trillion, while exports reached ₦38.59 trillion, resulting in an unprecedented trade surplus of over ₦14 trillion. This is a remarkable turnaround from the consistent trade deficits of the past.

The reforms implemented by President Tinubu's administration are bearing fruit. The removal of fuel subsidies and the floating of the Naira have made imports more expensive, incentivizing local manufacturers to produce more. This may bring short-term pains as we adjust, but the long-term gains will be permanent: an expanded economy, rising incomes, and a higher standard of living.

The previous administration's policies had set Nigeria back decades, with a budget deficit of ₦36.8 trillion and a trade deficit of over ₦20 trillion in just eight years. It was unsustainable. President Tinubu deserves commendation for his courage in implementing reforms despite criticism.

Nigeria is gradually becoming a prosumer nation.