Key facts
- Nigeria's economic reforms have helped stabilize public finances and attract investment.
- Fuel subsidy and foreign exchange reforms are projected to save 15.8 trillion naira between June 2023 and December 2025.
- These reforms boosted total federal resources by 20.4 trillion naira.
- The government used these funds for 30.64 trillion naira in extra spending, including wage increases, debt servicing, and infrastructure.
- The reforms narrowed the official-parallel market exchange rate gap to under 5%.
Nigeria's Finance Minister Taiwo Oyedele stated on Wednesday that President Bola Tinubu's economic reforms, including the elimination of a costly fuel subsidy and currency devaluation, have successfully stabilized public finances, bolstered foreign reserves, and attracted investment.
These reforms, implemented since Tinubu took office in 2023, have garnered support from investors and international lenders, though they have contributed to a cost-of-living crisis for ordinary Nigerians.
Oyedele reported that the subsidy and foreign exchange reforms are expected to yield savings of 15.8 trillion naira ($11.71 billion) between June 2023 and December 2025. He added that these measures increased total federal resources by 20.4 trillion naira through enhanced revenues and borrowing.
The government utilized these funds to support an additional 30.64 trillion naira in spending. This included 9.39 trillion naira for wage increases, 9.37 trillion naira for servicing external debt, and 6.5 trillion naira for infrastructure projects.
According to Oyedele, the reforms resolved a situation where 27 states were struggling to meet salary obligations. Furthermore, the reforms narrowed the gap between the official and parallel market exchange rates to less than 5%, down from over 60%. They also helped to curb the growth of the government's approximately 30 trillion naira Ways and Means debt, which represents direct lending from the Central Bank of Nigeria to cover temporary budget shortfalls.
Despite these reforms, Nigeria's economic growth remains sluggish, registering 3.89% year-on-year in the first quarter, a slight decrease from 4.07% in the final quarter of 2025.