Jimoh Ibrahim: Tinubu Needs Time to Address Inflation Caused by Buhari’s Fiscal Policies

President Bola Ahmed Tinubu and ex-President Muhammadu Buhari

Jimoh Ibrahim: Tinubu Needs Time to Address Inflation Caused by Buhari’s Fiscal Policies

Jimoh Ibrahim has warned that it is unrealistic to expect President Bola Tinubu to immediately resolve Nigeria’s inflation crisis, which he attributed largely to the N30 trillion borrowed via Ways and Means overdrafts during the administration of the late President Muhammadu Buhari.

Ibrahim made the remarks in an interview on Channels TV’s Politics Today on Friday, highlighting that President Tinubu inherited an economy where cash-to-GDP was only 0.5%, yet chose not to fully expose the reckless financial practices of the previous administration. He said, “Buhari printed ₦30 trillion; so you want Tinubu to do magic to replace that ₦30 trillion?”, emphasizing that inflation caused by years of unbridled money printing cannot be solved overnight.

He further noted that he had advised President Tinubu to publish the financial data he inherited to inform Nigerians, but cabinet members reportedly discouraged the move, citing potential political distractions. Ibrahim stressed that a clear explanation of inherited fiscal challenges would have helped manage public expectations regarding inflation relief.

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Nigeria’s Wale Edun has similarly blamed the massive naira printing under Buhari for the persistent inflation. Speaking to the Senate Committee on Finance in March 2024, Edun revealed that the Central Bank of Nigeria (CBN) printed ₦22.7 trillion between 2015 and 2023 through Ways and Means overdrafts, without any corresponding increase in productive economic activity. He noted that a select few benefitted disproportionately from the excess liquidity, while the wider population suffered, stressing that measures must be taken to withdraw excess money and restore macroeconomic balance.

Ibrahim highlighted that President Tinubu also inherited a debt profile of over ₦46 trillion and rising inflation of around 22%, with fiscal challenges exacerbated by the ending of fuel subsidies and naira devaluation. While inflation existed before Tinubu’s administration, it has worsened in part due to structural economic challenges left by the previous administration. Economists agree that years of public borrowing and deficit financing fueled inflation by increasing money supply without corresponding output growth, creating pressures that cannot be reversed quickly.

On the global front, Ibrahim commented on the ongoing U.S.-Israeli war with Iran, noting that higher global oil prices could benefit Nigeria’s economy by boosting foreign exchange earnings. He explained that higher oil revenues could reduce the government’s borrowing needs and strengthen the Central Bank’s ability to stabilize the naira, improve cash inflows, and promote macroeconomic stability, although fuel price hikes could increase domestic transportation costs.

Ibrahim also praised the progress of Nigeria’s debt-to-revenue management under Tinubu, noting that the ratio now stands at 68%, compared to 96% under Buhari. He stressed that while the administration is making progress, expecting immediate inflation relief is unrealistic. Sustainable improvement requires long-term structural reforms, fiscal discipline, and collaboration between the government, private sector, and citizens.

He concluded that Nigerians should understand that addressing inflation is a gradual process, and the Tinubu administration is actively implementing measures to stabilize prices, improve revenue management, and strengthen the economy while navigating inherited fiscal challenges.