Date: October 8, 2025
By: LuchiInter News Blog
Nigeria’s Vice President, Kashim Shettima, has declared that the country has “exited its phase of economic instability,” signalling renewed confidence in the government’s economic reforms and policies. Shettima made the statement while delivering a keynote address at the Bauchi Investment Summit, where he outlined the administration’s achievements in stabilizing the macroeconomic environment and improving investor confidence.
The bold declaration comes at a time when Nigeria is grappling with the lingering effects of inflation, foreign exchange challenges, and a fragile oil sector. It has drawn both praise and cautious skepticism from analysts, investors, and citizens who are eager to see tangible improvements in their daily lives.
📌 Context: Years of Economic Strain
Nigeria’s economy has faced major turbulence over the past decade. Key challenges have included:
- High inflation, particularly food inflation, which has eroded purchasing power.
- A volatile foreign exchange market, with fluctuating naira exchange rates.
- Debt pressures, as the government devoted a large portion of revenue to servicing loans.
- Budget deficits and reliance on borrowing to fund government spending.
- Structural weaknesses in infrastructure, security, and institutional capacity.
Against this backdrop, the Vice President’s statement that the country has exited economic instability carries significant weight. It suggests that the Tinubu administration believes its fiscal and monetary policies are beginning to produce positive results.
🗣️ Shettima’s Key Points at the Summit
During his address, Shettima highlighted several indicators that, in the government’s view, show Nigeria is turning the corner:
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Improved Foreign Reserves
He noted that Nigeria’s foreign reserves have stabilized and improved, giving the country a stronger buffer against external shocks.
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Reduced Debt Burden
The administration has reportedly taken steps to manage debt repayments and restructure obligations, thereby easing fiscal pressure.
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Growth in Non-Oil Revenues
For decades, Nigeria relied heavily on oil exports for government revenue. The Vice President emphasized recent progress in expanding non-oil revenue sources through taxation, customs reforms, and improved collection mechanisms.
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Foreign Exchange Market Stabilization
Shettima claimed that recent monetary policy adjustments have brought more predictability to exchange rates, reducing speculative activities that previously worsened volatility.
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Improved Investor Confidence
He stated that foreign investors are gradually regaining trust in Nigeria’s economy due to reforms in taxation, ease of doing business, and infrastructure development.
✅ Reasons for Cautious Optimism
While some observers may view the Vice President’s declaration as ambitious, there are genuine signs that Nigeria is moving toward greater macroeconomic stability:
- Policy Reforms: The removal of fuel subsidies, introduction of new tax measures, and unification of foreign exchange windows are structural changes aimed at long-term stability.
- Revenue Diversification: Expanding the tax net and reducing dependence on oil revenues gives the government more fiscal space.
- Debt Management: Ongoing efforts to restructure debt and seek concessional financing from development partners could ease repayment pressures.
- Positive Sentiment: A confident statement from top leadership can shift market psychology and encourage both local and foreign investors.
These steps suggest that Nigeria is making progress toward stabilizing key economic indicators, even if the benefits are not yet fully felt at the grassroots level.
⚠️ Reasons for Skepticism
However, some economists caution against celebrating too early. They argue that while macro indicators may be improving, many Nigerians still face harsh economic realities:
- High Inflation Persists: Food and transportation costs remain elevated, putting pressure on households.
- Debt Servicing Burden: A significant portion of government revenue still goes to debt servicing, leaving little for capital projects.
- Vulnerability to External Shocks: Nigeria’s economy remains exposed to global oil price fluctuations and geopolitical factors.
- Structural Issues Remain: Insecurity, inadequate infrastructure, and weak institutions continue to pose serious challenges.
For the Vice President’s statement to be fully credible, analysts say improvements must translate into visible, everyday benefits for citizens — such as lower prices, job creation, stable exchange rates, and better public services.
📊 Indicators to Watch in the Coming Months
To determine whether Nigeria has truly exited economic instability, experts recommend watching the following indicators:
Sustained positive movement across these areas would lend credibility to Shettima’s assertion.
🧭 What This Means for Nigerians
For ordinary Nigerians, “exiting economic instability” must mean more than political speeches. It should reflect in affordable goods, predictable prices, better job opportunities, and improved public services.
Small businesses should be able to operate without fear of sudden forex fluctuations. Households should be able to budget without worrying about unpredictable price surges. If these outcomes materialize, public trust in government policies will deepen.
📝 Conclusion
Vice President Kashim Shettima’s declaration that Nigeria has exited economic instability is both a statement of intent and a signal of confidence. It shows that the administration believes its economic policies are gaining traction.
However, whether this optimism is justified will depend on tangible improvements in macroeconomic indicators and the lived experiences of citizens. The months ahead will be crucial in proving whether Nigeria has indeed turned the corner or whether this is simply political optimism.
For now, Nigerians watch and wait — hopeful that this time, the numbers will tell a different story.
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