By Tanimu Yakubu
Introduction
Peter Obi’s intervention once again reflects a persistent tendency to reduce extremely complex questions of economic recovery, sovereign diplomacy, and international capital engagement into simplistic populist soundbites.
The Real Economic Inheritance
No serious analyst disputes that foreign engagements should ultimately produce measurable economic outcomes. The real issue, however, is whether Mr. Obi properly understands the sequence through which nations emerging from fiscal and monetary instability rebuild investor confidence, restore credibility, and reposition themselves within global capital markets.
President Tinubu inherited an economy facing severe structural stress: an unsustainable fuel subsidy regime, multiple exchange-rate distortions, collapsing fiscal buffers, mounting debt-service pressures, dwindling investor confidence, and unprecedented dependence on Ways and Means financing simply to sustain government operations.
Why International Engagement Matters
Under such circumstances, international engagements are not mere ceremonial excursions; they become instruments for rebuilding sovereign credibility, restoring policy confidence, reassuring investors, strengthening diplomatic alignments, attracting long-term capital, and repositioning the country within regional and global economic networks.
The False Comparison with the United States
Mr. Obi’s comparison between Nigeria and the United States under Donald Trump is particularly superficial. The United States engages China from the position of the world’s dominant reserve currency issuer, the largest consumer market on earth, and a mature industrial economy with deep capital markets and global technological dominance. Nigeria, by contrast, is a reforming emerging economy attempting to stabilize itself after years of fiscal distortion and policy disequilibrium. The contexts are not remotely comparable.
Investment Confidence Takes Time
More importantly, many of the benefits of state engagements do not materialize instantly in the form of dramatic headline announcements. Serious investments, infrastructure partnerships, manufacturing relocations, energy financing arrangements, and sovereign investment commitments often emerge gradually after sustained diplomatic engagement, policy stabilization, and investor confidence-building.
The Contradiction in the Criticism
Ironically, many of the same critics now demanding immediate investment inflows were among those who opposed the difficult stabilization reforms — including fuel subsidy removal and exchange-rate unification — that were necessary to restore the macroeconomic credibility investors require before committing long-term capital.
The Fiscal Reality
The uncomfortable truth is that Nigeria was approaching a dangerous fiscal cliff before this administration intervened. The government had become excessively reliant on Central Bank financing merely to sustain recurrent obligations. Fuel subsidies had become fiscally indefensible. Exchange-rate arbitrage had become systemic. Delayed reforms would likely have produced even deeper economic instability.
What this administration confronted was not the luxury of ideal sequencing, but the urgency of stabilization.
Conclusion
It is therefore intellectually inconsistent to oppose stabilization reforms on one hand while simultaneously demanding the investment confidence that only such reforms can eventually produce.
Diplomacy should indeed generate economic value. But rebuilding a damaged economy requires more than slogans, photo comparisons, or selective foreign analogies. It requires difficult decisions, international re-engagement, policy credibility, institutional stabilization, and the patience necessary for long-term economic restructuring to take root.
*Tanimu Yakubu is the Director General of the Budget Office of the Federation
