Otedola praises Tinubu’s reforms for Nigeria’s economic growth

Billionaire businessman and chairman of First HoldCo Plc, Femi Otedola, has praised President Bola Tinubu’s reforms aimed at boosting Nigeria's economy.

Mr Otedola shared his thoughts in Paris on Monday during a private dinner with the president. Tinubu is currently on a 28-day working vacation in Europe.

He said, “President Tinubu’s bold and forward-thinking reforms have put our economy firmly on a path of sustainable growth.”

Otedola noted the positive results from these reforms. He mentioned that top Nigerian companies are now included on the FTSE Russell Frontier 50 Index. He also pointed out the Nigerian Exchange (NGX) is at historic highs, there is increased foreign direct investment, and renewed economic confidence.

The foreign exchange market has become more unified and stable. Foreign reserves are holding strong at about $55 billion, among other improvements, Otedola added.

Since President Tinubu took office in May 2023, Nigeria has focused on reforms to recover the economy, speed up growth, and stabilize financial conditions.

The government removed petrol subsidies that cost the treasury trillions of naira every year. This unpopular but investor-friendly move is seen as key to attracting foreign investors.

However, it has sharply increased the cost of living. Many Nigerians now face higher prices for energy, transportation, and food.

The government also unified the foreign exchange market. They combined several different exchange rate windows into one market-driven system. Now, FX rates are determined by supply and demand, unlike before when they were pegged.

Additionally, the naira has been significantly devalued to attract foreign investment. This step, while aimed at improvement, has also led to rising inflation.

Recently, Nigeria has been reclassified as a frontier market by FTSE Russell. This change comes after three years of being downgraded to an unclassified market.

With this reclassification, major companies like Dangote Cement, First HoldCo, MTN Nigeria, GTCO, Nestle Nigeria, Nigerian Breweries, Stanbic IBTC Holdings, Aradel Holdings, Presco, and Zenith have been added to FTSE Russell’s Frontier Index Series, effective this month.

Being listed in the Frontier Index Series gives these companies greater visibility among international investors compared to their primary listing on the Nigerian Exchange in Lagos.

Moreover, the country’s external reserves have surpassed the $55 billion mark. This is the highest level seen in more than 18 years.