Economic reforms to continue despite hardships, Tinubu says

President Bola Tinubu said on Wednesday that his administration’s economic reforms will continue despite growing public discontent due to increasing hardships.

He also announced plans to propose a new minimum wage bill to the National Assembly.

Following the removal of a petrol subsidy last year and currency devaluation, Nigeria’s inflation rate soared to 33.69% in April, marking the highest level in nearly three decades and triggering a severe cost-of-living crisis.

In a Democracy Day television address, Mr Tinubu acknowledged the difficulties resulting from these reforms, including higher interest rates and the partial removal of electricity subsidies. He said the measures were necessary to build a strong economic foundation for future growth.

“Our economy has been in desperate need of reform for decades. It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil,” Mr Tinubu stated. “As we continue to reform the economy, I shall always listen to the people and will never turn my back on you.”

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Last week, labour unions suspended a strike intended to pressure the government into agreeing to a new monthly minimum wage. The government has proposed doubling the minimum wage to N62,000 per month, while labour unions demand N250,000.

Mr Tinubu said his administration has negotiated in good faith. The last minimum wage adjustment was in 2019.

“We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,” Mr Tinubu said, though he did not specify whether the bill would include the government’s proposed minimum wage or a different figure.

Labour union leaders are awaiting further communication from Tinubu before deciding on their next steps.