In politics, praise across the aisle is a rare thing. Political actors are conditioned to look at every policy thru partisan lenses, more often than not cheering only what their political parties initiate and discounting the achievements of others. The recent assessment of President Bola Ahmed Tinubu’s economic reforms by the Governor of Anambra State, Professor Chukwuma Charles Soludo, a governor elected on the platform of the All Progressives Grand Alliance (APGA) deserves serious national reflection.
Governor Soludo is not from the ruling All Progressive Congress (APC). He belongs to the All Progressives Grand Alliance (APGA) which has always kept its independent political identity. More importantly, he governs Anambra State in the Southeast, the geopolitical zone where President Tinubu received the least electoral support in the 2023 presidential election. If there was any region where political incentives would favor criticism rather than praise for the Federal Government, it would be definitely the Southeast.
But Soludo at the Delta State Economic and Investment Summit, in an address to investors and policymakers offered an analysis that transcended political sentiments. He said the Nigerian economy had stabilized and “turned the corner” under President Bola Ahmed Tinubu, citing stronger macroeconomic fundamentals, rising foreign exchange reserves, greater investor confidence and improved fiscal stability.
This was not the language of a friendly partisan. It was the considered judgment of one of Nigeria’s most distinguished economists. That’s a good distinction.
Prof. Soludo is not just a sitting governor. A former Governor of the Central Bank of Nigeria (CBN), he is one of Nigeria’s most respected economic technocrats, whose contributions to banking consolidation are part of Nigeria’s modern economic history. When such a person says nice things about macroeconomic reforms, his words are naturally taken more seriously than mere political rhetoric.
His intervention merits attention not because it implies that Nigeria’s economic journey has been completed, which it clearly has not, but because it acknowledges that difficult structural reforms are beginning to yield measurable results.
When President Tinubu took office in May 2023, the economy faced one of its biggest challenges with mounting fiscal pressures, declining investor confidence, multiple exchange rate distortions, ballooning subsidy costs, dwindling public revenues and unsustainable debt obligations. Many state governments were unable to meet basic commitments while facing increasing demands for infrastructure, health care, education and security.
The signs were there to be seen. Public finances had become more and more tight. The repeated obligations and unsustainable subsidy payments were draining resources that should have been used for development.
The tough choices that followed were never going to be popular with the electorate. The removal of fuel subsidies brought immediate pain. The exchange rate reforms generated inflationary pressures immediately.
For many Nigerians, a question persisted: Would the pain ever translate into something positive? Such vast economic reforms rarely bring immediate comfort. They are intended to correct structural distortions accumulated over many years. Their benefits come gradually.
There are now growing signs that those hard choices are beginning to bring back macroeconomic stability. That is exactly what Soludo admitted.
His reference to Nigeria’s stronger foreign exchange reserves, reportedly rising to about $52 billion, is more than a numerical upgrade. Healthy reserves build a country’s ability to withstand external shocks and reassure investors, stabilize the currency and improve confidence in the broader economy.
His observation of exchange rate predictability is important too. Economic policies that are predictable are good for business. Investors invest money where uncertainty is less.
When foreign exchange markets are more transparent, manufacturers are better able to plan production. Importers, exporters and financial institutions will benefit from better market confidence.
These developments will not solve all economic challenges immediately. But they are important building blocks. Soludo’s comments about the fiscal health of the states of Nigeria may be the most important part.
For several decades, many subnational governments relied heavily on monthly allocations from the Federation Account Allocation Committee (FAAC) and were often compelled to balance the need to finance infrastructure with the need to pay salaries and pensions.
The Federal Government’s reforms have changed this fiscal landscape fundamentally. Higher revenues for states have created more fiscal space for them. Governors in Nigeria are now better positioned to deliver capital projects, improve public services and invest in critical infrastructure across the country.
Road construction is picking up. Healthcare facilities are being increased. More investment in agriculture. The educational infrastructure is being re-assesed.
Of course, governance outcomes will vary from state to state, but the improved fiscal environment has definitely strengthened the fiscal position of many state governments.
And I am not speaking as a partisan. This is mirrored in the fiscal realities facing subnational governments. Interestingly, Soludo himself cited Anambra as a case study of prudent fiscal management, pointing out that his administration has not resorted to borrowing to pay salaries or meet routine obligations.
His statement raises an important point. Possibilities for Federal Reform.
It is up to the state governments to use those opportunities and how effective they are in using them. The importance of fiscal discipline at the subnational level remains.
Soludo’s professional background is another reason his endorsement has extraordinary credibility. He is a former CBN Governor and he understands monetary policy, exchange rate dynamics, fiscal sustainability and macroeconomic management far more deeply than the average political commentator.
President Tinubu’s reforms have gathered a lot of steam. The next phase now is to translate improved fiscal stability into inclusive economic growth that touches households in every community.
History has taught us that good economies are built upon difficult reforms, patient implementation and institutional consistency. Few countries can secure long-term prosperity without painful structural weaknesses.
Ultimately, the intervention by Governor Soludo provides an important lesson for Nigeria’s political class. Partisan rivalry should not be a casualty of national development. Responsible leaders should acknowledge progress when objective evidence shows progress, regardless of party affiliation.
