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While Nigeria marks two years under the guidance of President Bola Ahmed Tinubu, I believe it is important to reflect, not from the lens of politics, but from the point of view of business, industry and economy. I speak not only as the president of the Bua group, one of the greatest conglomerates in Africa, but also as someone who has experienced the complexity of the reforms of Nigeria. I saw the cost of dysfunction, the burden of inefficiency, but above all, the promise of a playing field and the dividends of decisive governance.
Removal of the fuel subsidy
The removal of the fuel subsidy is one of the most important decisions made by this administration. Before then, Nigeria sold PMS to 200 or 250 Naira per liter, which was about 25 or 30 cents. I doubt there was a country in the world where fuel was sold at that price. During my trip to Saudi Arabia for the minor Hajj of February of this year, I checked the price of the pump in one of the petrol stations while led from Jeddah to Mecca. When I converted the price in Naira, they were almost 1,500 naira per liter. That was Saudi Arabia.
We simply could not afford the subsidy. It was not only the Nigerians who benefited from it. We were subsidizing the entire region. I remember visiting the Republic of Niger a few years ago when President Bazoum honored us. During dinner, he joked and said: “Thanks for the subsidy”. He said that 100 percent of all the prosecutors consumed in Niger came from Nigeria because he would cost three times more for import. There was no incentive for them to bring their own fuel or perfect crude oil in their refinery. This was the situation throughout the region.
Today, I understand that our fuel consumption has decreased by 40-50 percent. It is not because the Nigerians are consuming less, but because the neighboring countries have stopped exploiting our subsidized fuel. The PMS is even cheaper in Nigeria, even at 800 or 900 naira per liter, but logistics no longer supports easy access. Countries like Niger and Benin Republic still take fuel from Nigeria, but others have stopped.
The removal of subsidies was necessary not only to save the economy, but to ensure that the only Nigerians benefit from what is imported. Even if there must be a subsidy, it should only be for the Nigerians. The money saved is now channeled into infrastructure, for better support for states and other development priorities. All states are receiving more money now, and this has really made the difference.
I am of detention opinion that President Bola Ahmed Tinubu made the right decision, and he took boldly. The first day came into office, he did what everyone knew had to be done, but nobody dared to do. He acted immediately. Many criticized him, but he did the right thing and saved the country. If we had continued under that burden, only God knows where we would be today. I always say that Mr. President is probably the only one who has had the courage to make such difficult and necessary decisions.
On the unification of the foreign currency regime
The unification of the change market is another critical reform. Before this, many of us in the entrepreneurial community spent most of our time chasing the changes. Personally I spent half of my time trying to get FX from the Nigeria central bank. The CBN was the only source of official exchange, which offers FX to about 500 naira when the parallel market was 800 or 900. No activity could survive outside the CBN structure.
Every two weeks we went to Abuja to look for assignments. It was exhausting and inefficient. You had to camp there for three or four days before allocation on Monday, waiting for the CBN to assign dollars. Today I met the new Governor of the CBN, Mr Cardoso, only once every two years. The reason is simple: I don’t need to go to Abuja now to obtain foreign currency. The system is open. Works.
This was also a bold move of President Tinubu. It was also necessary and made that decision. We are very happy because today we can focus on our activities. These reforms are saving the economy.
Equity, mental health and business stability
Under this administration, we have seen a return to equity and business stability. We don’t worry about arbitrary arrests or politically motivated interruptions. Let me make a real example. We started a new activity in Port Harcourt four or five years ago under Bua Foods, operating in the ports of the rivers under a concession with the authority of the Nigerian ports. He was going very well. One day we woke up with a letter in which it is said that the concession had been revoked, the terminal closed and the lease has resolved. There have been no quotes, no problem, no conflict.
Later, we discovered that the CEO of the NPA at the time decided to close the business simply because our operations were in competition with those of her friend. He wanted to impress his friend. This was the only reason. Today, that kind of things cannot happen. Nobody would dare to undertake such an action under the president Tinubu. You can wake up now without fear that your business has been closed by an agency or politician.
That stability is fundamental. The Port Harcourt plant alone saw over $ 500 million in investments and took over 4,000 people. The trust that this government has brought is real and is helping us to plan better.
I must also personally recognize the former president Muhammadu Buhari. When our Harcourt port plant was unjustly closed, it was his intervention that saved him. I had the privilege of explaining the situation to him. He agreed he was wrong and acted. He said he would not allow injustice under his watch. That decision saved the activity. But the reality is that I had access. What if I didn’t do it? This is the difference today. Now, nobody needs access to the president to be treated fairly. Everyone knows that if you do something wrong under President Tinubu, you could lose your job or even face criminal actions and go to prison. That’s why now I can spend more time focusing on business and relax.
The reforms of President Tinubu are creating a field of equal. As I said earlier, each company had to put pressure on the CBN for FX. If you didn’t do it, your business would collapse. Now, it is not necessary to go to Abuja. You focus only on your operations.
Infrastructure as a key development driver
In infrastructure, the difference is also clear. Look at the Lagos-Calabar motorway. Look at the Sokoto-Badagry Road. Look at the Kwara projects that we are performing as part of the tax credit system. Look Kano-Kongolam. Look at the okpella at the corridor of the state of Kogi. These projects are progressing due to savings from the removal of subsidies and FX unification. With multiple entrances, Nigeria is building.
These roads and others under construction are fundamental because logistics has become a great challenge. The transport of goods from Lagos to the north is very expensive due to bad roads. Now, the president is facing this. With a better infrastructure, logistics will improve and companies will grow. These reforms have allowed long -term planning and serious investments.
Bua will continue to bet on Nigeria
Since President Tinubu entered office, the Bua group has invested over a billion dollars in the Nigerian economy. We are expanding our food activity, doubled our facilities of flour and pasta in Port Harcourt and build another in Lagos. The question is increasing. People are gaining more. Trust is returning. We also completed the first pop in Nigeria Pop production plant that now operates and soon the construction of a 30 MW solar energy project in the state of Sokoto is starting.
In the oil and gas sector, we are completing our GNL project in Ajaokuta, in the state of Kogi. These investments are possible due to the stability that has been caused by the reforms of President Tinubu. We can plan now. The exchange rate was quite stable for almost a year. FX is accessible. Money comes from different sources and investors are responding. If you want 200 million dollars a week for trade, you can get it without pressure on the central bank. These are the results of good policies.
On food safety
When I met President Tinubu recently, he raised concern about food prices. He wanted to know what Bua Foods was doing. I explained that his six -month derogation had worked. He interrupted the acknowledgment in the rice market. In Nigeria, the rice harvest is short and runs for about three months. The intermediaries were purchasing rice field, accumulating it and increasing prices after the harvest. This artificial scarcity has pushed prices up to 110,000 naira per bag. Farmers have not benefited. The farmers only wanted to sell and go on, but some people were buying from them, accumulating them and creating food crises in the country.
The temporary renunciation made it possible to introduce the rice and grind immediately. The acknowledgments were cut. Prices started to go down. It was a short -term solution, but it worked. He showed foresight. I told the president who helped and that if the situation persists, further steps can be taken. But for now, he made the difference.
First policy of the Nigeria of President Tinubu and backward integration
The first policy of the Nigeria of President Tinubu has aligned well with our belief in backward integration. Our concrete activity is almost completely local. We extract our limestone. We use Nigerian gas even if it is called dollars. The only foreign element is the equipment and even what benefits from government concessions for mining equipment that all the others in the sector benefits. If we were to import concrete today, the prices would be over 15,000 naira per bag. Nigeria does not have the infrastructure brings to manage the import volume. The production locally saved the economy and stabilized the sector.
We are doing more and we will continue to do more. Nigeria has everything: population, arable land, resources, water and now, strong leadership under the president Tinubu. We believe in Nigeria because the foundations are now strong. My advice to everyone is to bet on Nigeria. This is the place to stay.
So for me, what did this administration do well? Firstly, he removed the fuel subsidy that was the greatest economic scam in our history. Secondly, he unified the change market and third, has restored stability, equity and trust in the economy. These are the foundations of growth. Nigeria is full of potential. With the right leadership, which we now have, there is no limit to what we can reach.
– Rabiu is the founder and president, a bua group
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