Reno Omokri challenges Dele Momodu’s perspective on Nigeria’s economy. Discover the key points of their debate and differing opinions.
Reno Omokri, a former aide to ex-President Goodluck Jonathan, has challenged Dele Momodu, a well-known journalist’s assertion that the economy of Nigeria is close to collapse.
Omokri, who is based in the United States, countered Momodu’s open letter to President Bola Tinubu regarding Nigeria’s economic struggles by pointing out that various indicators suggest that the country is actually performing quite well.
Omokri wrote on his social media page, “Egbon Dele Momodu, my dear…”
Upon reading your open letter addressed to President Bola Tinubu, I noted that you made a statement claiming that “Our economy has virtually collapsed”, alongside other allegations. However, with all due respect, the facts are incongruous with your claims and in your communication to the president, no factual evidence was presented; only subjective viewpoints. Henceforth, please allow me to present some accurate information which contradicts what you’ve opined.
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Just yesterday, the International Monetary Fund predicted that Nigeria will experience a 3.1% GDP growth rate in 2024 as a result of current administration reforms. This projection is one of the strongest for an African nation and suggests that Nigeria’s economy has not completely failed.
In the first quarter of 2024, Nigeria achieved an unprecedented trade surplus record of ₦6.52 trillion. This stands in stark contrast to our previous regular occurrences of trade deficits. Such a monumental feat is attributed to monetary reforms implemented by the present government- one that has significantly boosted exports and minimized imports, specifically within non-oil sectors; hence facilitating growth beyond expectations..
An illustration of growth can be seen in Nigeria’s current status as a net supplier of clement to Europe, and with their increasing exportation of refined petroleum products to both West African states and Europe. Ghana, who also exports petroleum products mainly relies on LPG from Nigeria. This demonstrates potential for expansion rather than decline.
Furthermore, with regards to income, every Nigerian state has witnessed a noteworthy increase in federal allocations since May 29th, 2023 compared to the Buhari administration. Each state now receives no less than a 45% hike in their allocation funds while Nasarawa’s revenue has soared by nearly one hundred percent and Anambra’s increased by seventy percent without any significant rise in wages.
The aforementioned projects exude economic prowess rather than decline.
With a Return on Investment of 22.90%, Nigeria’s Stock Exchange is currently deemed the most profitable capital market globally by Financial Derivatives (FDC). This fact has also been supported by the National Bureau of Statistics and should not be dismissed as exceptional. In addition, in 2024, for the first time ever, Nigerian Stock Exchange exceeded an all-share index (ASI) value that surpassed 100,000 points.
I do not consider this growth as a collapse, and I am certain that investors who profited would agree.
The 66.27% increase in capital inflow to Nigeria this year may have influenced the upgrade of Nigeria’s economy by Fitch and S&P Global Ratings, raising it to a Stable B rating as well as causing foreign investment into the capital market to soar five times higher than last year’s figure with N93.37 billion being recorded during Q1 of 2024 compared to N18.12 billion over the same period in previous years..
Despite settling the overdue foreign exchange debts owed to international airlines and other investors by Nigeria’s Central Bank, the country has still managed to achieve a year-to-date record of about $34 billion in its foreign reserves. Thus, how would it be justified that an economy with such sound financial standing is at risk of collapsing?
The long-awaited Student Loan has come to fruition and is currently being distributed, signaling an impending surge in Nigeria’s pool of human capital. This development will enable a greater number of young people to access education.
Considering the points mentioned earlier, Egbon Dele, could it be that you have relied excessively on assumption and insufficiently on facts while arriving at your assertion about Nigeria’s economic decline?
