President Tinubu noted in his speech that the economy has been unbalanced on account of a shaky foundation built on its decades- old dependence on oil revenues.
President Bola Tinubu again reiterated that he was cognisant of the fact that the reforms embarked upon by his government were causing pain to Nigerians.
Mr Tinubu, in his broadcast to mark Nigeria's Democracy Day on 12 June, however, said the reforms were necessary and would eventually benefit the country and its citizens.
The controversial removal of petrol subsidies and the floating of the Naira has led to astronomical increases in the prices of goods and services causing the worst cost of living crisis Nigeria has experienced in decades.
"The reforms we have initiated are intended to create a stronger, better foundation for future growth. There is no doubt the reforms have occasioned hardship," the president said.
"They are necessary repairs required to fix the economy over a long run so that everyone has access to economic opportunity, fair play and compensation for his endeavour and labour."
On taking office last May, President Tinubu announced removal of costly petrol subsidies that had been a drain on the national treasury for years, costing the nation trillions of naira annually.
In the weeks that followed, Nigeria unified all the segments of its foreign exchange market into a single window in order to allow the naira to trade more freely.
That shift from the unorthodoxy of the managed float the country operated for years has triggered two devaluations of the currency ever since, leading to a slide of more than 70 per cent in the value of the naira.
Those measures are fanning a record cost-of-living crisis in Africa's most populous nation, where inflation is near its three-decade peak, spurred by food and energy prices.
President Tinubu noted in his speech that the economy has been unbalanced on account of a shaky foundation built on its decades-old dependence on oil revenues.
Crude oil contributes more than half of the government revenue and over 80 per cent of Nigeria's foreign exchange earnings.
The industry has been plagued by oil theft and years of under-investment, both of which have taken their toll on output.
A good number of international oil companies are divesting from onshore and shallow-water operations and moving offshore in the Niger Delta, citing operational constraints.
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Nigeria's gross domestic product expanded by 2.98 per cent in real terms in the first quarter of the year compared to 3.46 per cent in the last quarter of 2024.
The World Bank expects the economy to grow by 3.3 per cent this year.
June 12: What Tinubu said about democracy, reforms, human rights, others (FULL TEXT)
Although the federal government has announced a series of palliatives to mitigate the impact of petrol subsidy removal and similar shocks on the people, many Nigerians are still reeling from the devastating impact as prices of petrol, foodstuff, and other essential commodities continue to rise.
On Wednesday, Mr Tinubu said he understands the economic difficulties faced as a nation while noting that the reforms initiated are intended to create a stronger, better foundation for future growth.
"As we continue to reform the economy, I shall always listen to the people and will never turn my back on you," Mr Tinubu said.
