As President Bola Tinubu marks his first year in office, Nigeria is witnessing a wave of decisive reforms and initiatives that herald a new era of governance.
From tackling long-standing challenges to unlocking the nation’s vast potential, Tinubu’s administration has hit the ground running, ushering in a renewed sense of hope and optimism.The removal of fuel subsidy and the floating of Naira have pushed inflation to the roof top. However International monetary organisations like the World Bank and International Monetary Fund have hailed the move as bold and necessary.
To mitigate the impact of the two tough policies on the populace, the president has embarked on some projects and reforms .
One of the most significant moves by the Tinubu administration has been the push towards an energy transition, spearheaded by the Presidential Compressed Natural Gas Initiative (PCNGi).
Recognizing the need to reduce dependency on fossil fuels and embrace cleaner energy sources, the president has mandated that all future vehicle, generator, or tricycle acquisitions by the government and its agencies must utilize either compressed natural gas (CNG), solar power, or electric energy sources.
The PCNGi aims to roll out about 800 CNG buses, 4,000 CNG tricycles, and 100 electric buses in its first phase, with over 2,500 CNG tricycles expected to be ready before May 29, 2024. This bold move not only aligns with the government’s commitment to environmental sustainability but also promises to unlock new investments in renewable energy, solar panels, and lithium batteries, while reducing costs and inflation.
Recognizing the pivotal role of the oil and gas sector in the nation’s economic development, President Tinubu has taken decisive steps to revitalize investments in this critical industry. Through the introduction of fiscal incentives for non-associated gas, midstream, and deepwater developments, as well as streamlining contracting processes and addressing local content requirements, the administration aims to position Nigeria as the preferred investment destination for the oil and gas sector in Africa.
The Independent Petroleum Producers Group (IPPG) has wholeheartedly endorsed these measures, citing the potential benefits of reduced project costs, faster execution timelines, increased gas processing and distribution capacity, and a surge in domestic gas supply for power generation, industries, and exports.
Beyond the energy sector, Tinubu’s administration has also turned its attention to the solid minerals sector, unveiling a comprehensive seven-point agenda aimed at attracting investments and driving sustainable growth.
Spearheaded by the Minister of Solid Minerals Development, Dr. Dele Alake, this blueprint includes the creation of the Nigerian Solid Minerals Corporation, joint ventures with mining multinationals, comprehensive data on priority minerals, and the establishment of mineral processing centers to focus on value-added products.
The administration’s commitment to transforming the solid minerals sector is underpinned by the radical approach of resetting the logic of the Nigerian economy, exemplified by the removal of fuel subsidies and the adoption of a single exchange rate.
One of the most pressing issues facing Nigeria has been the persistent power outages and inadequate electricity supply. President Tinubu has acknowledged that no meaningful economic transformation can occur without a steady electricity supply, and his administration has taken significant strides to address this challenge.
Firstly, the president has committed to a new deal to speed up the delivery of the Siemens Energy power project, which aims to provide a reliable supply of electricity to Nigerian homes and businesses. This project, initially launched in 2018 under the Presidential Power Initiative, received a renewed impetus when Tinubu and German Chancellor Olaf Scholz agreed to accelerate its implementation during COP28 in Dubai.
Moreover, the Tinubu administration has approved the gradual payment of power sector debts estimated at over N3.3 trillion. This includes N1.3 trillion owed to power generating companies (Gencos) and $1.3 billion (approximately N1.994 trillion) owed to gas companies. By clearing these debts through cash injections, promissory notes, and future royalties, the government aims to address the financial constraints hampering the sector’s growth.
Furthermore, President Tinubu has officially signed the Electricity Act (Amendment) Bill, 2024, into law. This legislation seeks to address the developmental and environmental concerns of host communities by allocating five percent of the actual annual operating expenditures of Gencos from the preceding year for the advancement of their respective host communities.
While acknowledging the shortcomings of the power sector’s privatization efforts a decade ago, President Tinubu has expressed concerns about the dwindling investment in the sector despite its privatization. To address this issue, the federal government plans to inaugurate a presidential task force to monitor and ensure the progress of key projects aimed at unconstraining the grid and delivering available generation capacity to homes and factories.
Tinubu has reiterated the government’s commitment to providing an enabling environment that will unlock private sector capital in the power sector, positioning the government as a true partner willing to listen and unblock the challenges faced by investors.
As President Bola Tinubu’s first year in office draws to a close, Nigeria has witnessed a flurry of transformative initiatives and reforms aimed at revitalizing key sectors, attracting investments, and propelling the nation towards sustainable economic growth. From the energy transition and the revitalization of the oil and gas sector to the empowerment of the solid minerals industry and the concerted efforts to address electricity challenges, the Tinubu administration has demonstrated a resolute commitment to tackling long-standing issues and unlocking Nigeria’s vast potential.
Through bold decision-making, strategic partnerships, and a willingness to embrace change, Tinubu’s governance has instilled a renewed sense of hope and optimism among Nigerians. As the nation embarks on this transformative journey, the foundations have been laid for a brighter, more prosperous future, where the aspirations of the people are met with decisive action and unwavering determination.