Tinubu, whose victory is being disputed in court by his main rivals, inherits record debt, foreign exchange and fuel shortages, a nearly two-decade-high inflation rate, poor power supply and falling oil production due to crude theft and underinvestment.
Getting rid of the fuel subsidy, which cost $9.7 billion in 2022, reforming the foreign exchange market so profits can be repatriated, and raising tax revenues are allHowever, Tinubu's announcement at his swearing-in on Monday lacked details."There is, however, likely to be a supplementary budget to accommodate for higher spending this year," Netherlands-based Yvette Babb, a portfolio manager at William Blair Investment Management, said.
Tinubu enacting his election pledges "will underpin investor confidence", South African research firm ETM Analytics said in a note.