Over 90% of FG Revenue Was Spent on Debt Before Tinubu Took Over — Dangote

Africa’s richest man, Aliko Dangote, has lauded President Bola Ahmed Tinubu for implementing tough but necessary reforms to rescue Nigeria’s economy, which he said was heavily strained before the new administration took over.

Speaking on the state of the nation’s finances, Dangote emphasized that over 90% of the federal government’s earnings were going into debt servicing before President Tinubu assumed office, leaving little room for infrastructure development or social investments.

According to Dangote, President Tinubu deserves credit — even from critics — for making hard decisions that previous administrations had avoided.

“As a visionary leader, these structural reforms which Mr. President did — really, you must give him credit. Even his own enemies will give him credit,” Dangote said.

He particularly praised Tinubu’s removal of the petrol subsidy, the unification of the exchange rate, and the review of electricity tariffs, saying these measures were long overdue and have already started to reduce the pressure on the government’s finances.

“Removing total subsidy, making it an open market for Nigerians to be buying at market rates, doing the exchange rate reform, and even removing electricity subsidy for the high class — these were not small moves,” he stated.

Dangote noted that despite the severity of the reforms, Nigerians have remained largely calm and peaceful — a sign that the public understands the necessity of the changes.

“A 241% increase in electricity cost for some of us in the high consumption bracket wasn’t easy, but people have absorbed it. There was no crisis, no burning of tires — and that tells you something,” he added.

Concluding his remarks, Dangote acknowledged that while the reforms are painful in the short term, they are crucial steps toward stabilizing Nigeria’s economy and ensuring long-term sustainability.

“These were things I thought wouldn’t happen in our lifetime, but here we are. Mr. President has done extremely, very, very well,” he said.

President Tinubu took office in May 2023 amid high inflation, dwindling foreign reserves, and record-high debt levels. His administration has since rolled out a series of economic reforms aimed at repositioning the economy, though not without drawing criticism from sections of the public affected by the rising cost of living.