IMPI backs Tinubu’s Economic Reforms to avert Venezuela-like crisis

In a statement by IMPI Chairman, Dr. Niyi Akinsiju, on Sunday, the group argued that the administration’s reforms were essential to prevent the country from falling into the same traps as the South American nation, whose reliance on populist economic policies led to severe economic distress.

IMPI addressed recent criticisms labeling Tinubu’s policies as “insensitive” and lacking a coherent strategy.

However, it argued these views overlooked Nigeria’s urgent economic challenges and the historic mismanagement that had driven the country to the brink.

According to Dr. Akinsiju, “Nigeria’s economic situation was a product of years of boom-bust cycles and misguided policies, particularly those modeled after South American economies like Venezuela.”

Drawing parallels, IMPI noted that, similar to Venezuela, Nigeria’s oil dependency and fiscal mismanagement had spurred recurrent debt and subsidy crises.

The group underlined that, as with Venezuela, subsidies and foreign exchange controls had worsened Nigeria’s economic woes, leading to capital flight and inflation.

By cutting fuel subsidies and consolidating foreign exchange windows, IMPI believed Tinubu’s government is laying the groundwork for recovery.

According to IMPI, Nigeria had seen positive economic signals despite the immediate hardships of the reforms.

The report cited a year-on-year rise in VAT and CIT revenues, increased foreign exchange inflows, and corporate financial resilience, with businesses like Transcorp Hotels reporting profits and others, like Flour Mills of Nigeria, planning significant investments.

IMPI concluded that, while Tinubu’s reforms were challenging, they were necessary steps to stabilise and ultimately expand Nigeria’s economy.