President Tinubu’s economic reforms restore confidence, stabilize the naira, reduce inflation, boost investment, and improve conditions across the Niger Delta region.
The Nigerian economy has shown significant signs of recovery under President Bola Ahmed Tinubu, driven by a series of bold economic reforms, according to a recent assessment by The Economist.
The report, highlighted by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, credits these reforms for restoring investor confidence, stabilizing the naira, and reducing inflation within a remarkably short period.
Onanuga, in a post on his verified X handle, he drew attention to the January 29 edition of the magazine, which offered a detailed review of Nigeria’s economic state before and after Tinubu assumed office in 2023.
The publication painted a picture of an economy struggling with severe fiscal and monetary imbalances, mismanaged foreign exchange reserves, and mounting obligations at the Central Bank of Nigeria (CBN).
When President Tinubu took office, the CBN faced unmet obligations totaling about $7 billion, representing 1.4 per cent of GDP at the time.
This situation triggered a massive withdrawal of international investors from the Nigerian market.
Meanwhile, the Federal Government had spent approximately $10 billion on fuel subsidies in 2022 alone, further straining public finances.
The Economist emphasized that prior monetary policies and an unsustainable multi-tier exchange rate system had weakened confidence in Nigeria’s currency and banking sector.
To address these challenges, the Tinubu administration initiated comprehensive economic reforms.
These included the removal of the fuel subsidy and the unification of the foreign exchange market, which allowed the naira to float more freely.
The government also tightened monetary policy to combat rising inflation and introduced targeted tax incentives to encourage investment, particularly in oil production and non-oil sectors.
Security improvements in the Niger Delta formed another key aspect of these economic reforms.
By stabilizing the region, the administration aimed to increase oil output while attracting both local and foreign investors to participate in Nigeria’s energy sector.
According to the report, the participation of indigenous companies has increased significantly, contributing to higher production levels and boosting overall investor confidence.
While acknowledging that Nigerians, especially the poor and middle class, continue to face higher fuel and food costs, The Economist noted that the government’s policies are gradually yielding results.
Annual inflation, which reached 34.8 per cent in December 2024, fell sharply to 15.2 per cent by December 2025.
Economic growth is returning, with the International Monetary Fund projecting a 4.4 per cent growth rate for 2026.
These figures indicate that the combination of fiscal discipline and structural reforms is beginning to stabilize the Nigerian economy.
The naira, which had suffered two major devaluations in 2023, has regained stability under the new policies.
Foreign exchange reserves have risen to $46 billion, marking the highest level in seven years.
Analysts suggest that this stability in currency and reserves provides a solid foundation for sustained investment in both oil and non-oil sectors.
Investor sentiment has also shown marked improvement. The Economist highlighted major commitments from global energy companies, including Shell’s plan to develop a $20 billion offshore oilfield by 2027 and ExxonMobil’s $1.5 billion deepwater investment.
Local business leaders are equally optimistic, pointing to rising oil and gas production and the enhanced role of indigenous companies in the Niger Delta as proof of the reforms’ effectiveness.
The magazine concluded that these economic reforms provide the Nigerian government with greater fiscal breathing room, enabling broader economic planning and support for non-oil sectors.
Export commodities such as cocoa and cashew nuts are now more competitive on the global market due to a stronger naira, highlighting the wider impact of the administration’s policies.
Bayo Onanuga emphasized that the assessment by The Economist validates the Tinubu administration’s commitment to long-term stability and growth.
He noted that the reforms are designed not only to address immediate fiscal and monetary challenges but also to create a resilient economy capable of attracting investment, generating employment, and improving living standards across the country.
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