On Tuesday, Prince Mohammed bin Salman bin Abdulaziz Al Saud, the Saudi Crown Prince and Prime Minister of Saudi Arabia, commended Bola Tinubu, the president of Nigeria, for his economic reforms.
According to a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Saudi Crown Prince said Tinubu’s economic reforms were similar to the ones he took when he became the prime minister of his country.
“The Crown Prince commended President Tinubu’s economic reforms, noting its similarities to his steps to strengthen Saudi Arabia’s stability and development when he became the Prime Minister,” the statement reads in part.
“He also assured Nigeria of his support and promised to motivate his team to realise the various areas of partnerships discussed at the meeting.”
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SAUDI CROWN PRINCE PRAISES NIGERIA’S ONGOING REFORMS, ASSURES OF SUPPORTThe Saudi Crown Prince and Prime Minister of Saudi Arabia, Prince Mohammed bin Salman bin Abdulaziz Al Saud, has assured Nigeria of support in its economic reform programmes.This is contained in a… pic.twitter.com/uSg1JVSDuN— NTA News (@NTANewsNow) November 12, 2024
Meanwhile, the Saudi Press Agency on the same day, reported that MBS met with Tinubu to discuss cooperation between the two countries.
“His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, met here today with Federal Republic of Nigeria President Bola Ahmed Tinubu on the sidelines of the Extraordinary Arab and Islamic Summit,” the Saudi Press Agency stated.
“The two sides reviewed ways of cooperation between the two countries and explored ways to develop them. They also discussed several topics on the summit’s agenda.”
The presidency’s post has since attracted attention among Nigerians on X and Facebook about the Saudi prime minister comparing the reforms in the fellow oil-rich country with the hardship Nigerians are facing. Some of the users disagreed here, here and here.
Like Nigeria, Saudi Arabia is also a member of the Organisation of the Petroluem Exporting Countries (OPEC).
Using the parameters of Purchasing Managers’ Index (PMI), Inflation rate, unemployment rate, Gross Domestic Product (GDP), and Debt-to-GDP Ratio, FIJ compared similarities between the two government leaders before and after they took office.
PURCHASING MANAGERS’ INDEX
The purchasing managers’ index (PMI) shows the growth in certain parts of the economy. It implies how business activity grows or decreases within a period.
It depicts how well businesses are doing or how bad they are struggling. If the PMI is above 50, it means that the business is growing, but if it is below 50, it shows that business activities within the given time are shrinking.
GROSS DOMESTIC PRODUCT
Gross Domestic Product (GDP) implies the total value of goods and services produced in a country within a specific period. When the GDP increases, it indicates that people are buying more goods and services and that the economy is growing. However, when it plunges, it signifies that a country is producing less and purchasing might have also reduced.
UNEMPLOYMENT
The unemployment rate index is determined by the number of people who want jobs but can’t get one. It is an essential index used to show the growth of a country’s economy.
INFLATION RATE
The inflation index indicates a rise in the cost of living. Inflation rate figures reflect the cost of essential goods and services like food, fuel and accommodation. It is a factor used to determine the living standard within a country.
Inflation in a country is high when the purchasing power of the citizens reduce and they have to pay more for the same goods and service. It is low when the prices stay the same or rising slowly.
DEBT-TO-GDP RATIO
This index indicates how much a country owes compared to the total value of goods and services it produced within a given period. It shows how much debt a country owes and its ability to pay them off using its yearly economic output.
FIJ used these indicators to analyse the economic growth of the Kingdom of Saudi Arabia (KSA) two years before Abdulaziz Al Saud assumed office as prime minister and two years after his appointment.
FIJ also used the same metrics for the Bola Tinubu-led administration which was inaugurated on May 29, 2023.
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KSA (2020 – 2024)
METRICS2020202120222024PMI54.757.755GDP$734.3 billion $834 billion $273 billion$1084 billion INFLATION RATE 3.4%3.06%2.47%1.9%UNEMPLOYMENT RATE7.45%6.62%5.59%7.1%DEBT-TO-GDP31%28.62%23.93%28.3%Data Source: KSA Ministry of Economy and Planning, Forbes, KSA General Authority for Statistics or Ministry of Human Resources, Saudi Arabian Monetary Authority (SAMA), World Bank and Statista
NIGERIA (2021 – 2024)
METRICS2021202220232024PMI55.4565346.9GDP$440.8 billion $478 billion $363 billion$199.7 billionINFLATION RATE15.63%21.34%28.92%33.88%UNEMPLOYMENT –5.3%5.4%5.3%DEBT-TO-GDP36.67%39.7%46.41%51%Data source: National Bureau of Statistics, Standard Chartered Investment Group, Central Bank of Nigeria, Statista, World Bank and Focus Economics.
The indicators from these tables show that the economy of Saudi Arabia grew at a faster rate than the Nigerian economy.
PMI aand GDP are comparable for both countries, but the inflation rates are not.
Abdulaziz Al Saud’s Saudi Arabia shows a consistent drop in inflation rate but Tinubu’s Nigeria is a contrast. Nigeria’s inflation rates rose consistently across the four years examined. The country hit its highest inflation rate in 28 years under Tinubu.
Tinubu’s administration has seen the Debt-to-GDP Ratio hit 50% from 36% in 2021. Abdulaziz Al Saud’s Saudi Arabia has kept its Debt-to-GDP Ratio under 31% since the crown prince assumed office.
The steps and results of the economic policies between both leaders aren’t so similar as the presidency’s statement put it.
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