Convert Three Years of Successful Economic Reforms into Inclusive Growth and Improved Quality of Life for Nigerians

Dike Onwuamaeze

The Centre for the Promotion of Private Enterprise (CPPE) praised President Bola Ahmed Tinubu’s administration for meeting the core objectives of its economic reform agenda and called on the government to now focus on turning those gains into inclusive growth—creating jobs, raising incomes, reducing poverty and improving the overall quality of life for Nigerians.

The CPPE issued the commendation in a press statement titled “Three Years of the Tinubu Administration: From Stabilisation to Shared Prosperity.”

It said the first three years of Tinubu’s presidency were mainly about rescuing the economy from the brink and restoring macro‑economic stability.

Dr. Muda Yusuf, CEO of CPPE, noted that any assessment of the first three years must consider the severe economic crisis inherited in May 2023, which was marked by long‑standing structural distortions that previous governments had repeatedly ignored or deferred.

Yusuf said: “However, stabilisation is only the beginning. The next phase of reforms must focus on translating macro‑economic stability into inclusive growth through accelerated investment, improved productivity, stronger energy security, protection of life and property, enhanced food security, industrial competitiveness and poverty reduction.”

“Ultimately, the success of the reform agenda will not be measured solely by reserve accumulation, exchange‑rate stability or stock‑market performance. It will be judged by its impact on jobs, incomes, living standards and the quality of life of ordinary Nigerians.”

“Macroeconomic stability may rescue an economy from the brink, but inclusive prosperity is what secures public confidence, strengthens social cohesion and sustains the reform journey.”

The CPPE highlighted several acute economic challenges inherited by Tinubu’s administration, including a foreign‑exchange market plagued by acute illiquidity, multiple exchange rates, pervasive arbitrage, declining investor confidence and external reserves that had fallen below $5 billion. Trade‑finance obligations were under pressure and Nigeria’s credibility in the international trading system had weakened considerably.

Fiscal conditions were equally challenging, as Ways and Means financing had become deeply entrenched, effectively institutionalising monetary financing of fiscal deficits, while the fuel‑subsidy regime had become a major channel of fiscal leakage, corruption and economic distortion.

Yusuf said: “The economy was approaching a tipping point as the fiscal, monetary and structural foundations of the prevailing model became increasingly unsustainable. Against this backdrop, the immediate task of the administration was to restore macro‑economic stability, rebuild investor confidence and avert a potentially deeper economic crisis and pave the way for growth acceleration that could only follow once the foundations of stability had been secured.”

In response to these mounting pressures, the administration launched two transformative reforms that became the pillars of its stabilisation agenda: fuel‑subsidy removal and exchange‑rate unification.

According to him, the removal of the fuel subsidy was arguably the most consequential fiscal reform undertaken by the administration. He added that the exchange‑rate unification addressed one of the most distortionary features of the Nigerian economy, as the multiple‑rate system had created extensive arbitrage opportunities, weakened transparency and discouraged investment.

Yusuf said that “there is growing evidence that the reforms have delivered important stabilisation outcomes as external reserves have improved significantly, with gross reserves approaching the $50 billion threshold. The balance of trade has remained in surplus, investor confidence has strengthened and exchange‑rate volatility has moderated considerably since 2025.”

“The economy experienced eleven consecutive months of disinflation from early 2025 through February 2026, reflecting the positive impact of macro‑economic stabilisation measures until March 2026 when the outbreak of the Iran–U.S.–Israel conflict triggered a sharp surge in global crude‑oil prices and elevated domestic energy and transportation costs, which reignited inflationary pressures across the economy.”

“The capital market also recorded remarkable gains. The NGX All Share Index rose from about 55,700 points in 2023 to over 254,000 points in 2026, representing growth of more than 350 percent. Market capitalization similarly increased from about ₦30 trillion to over ₦160 trillion, reflecting stronger investor sentiment and improved confidence in the economy.”

However, the CPPE noted that these reforms came with substantial adjustment costs such as significant inflationary shock, Naira depreciation, a surge in energy prices, escalating transportation and logistics costs and increased production expenses that sharply amplified inflationary pressures.

It said: “The welfare impact was considerable. Real incomes declined, poverty conditions worsened and the cost‑of‑living crisis emerged as one of the most difficult consequences of the reform process. While the reforms were inevitable, the social costs have been substantial and remain a major policy concern.”

Yusuf said the most significant concern is that macro‑economic stabilisation has yet to translate into broad‑based welfare gains. He pointed out that inflation has remained elevated, purchasing power remains weak and consumer confidence continues to be fragile.

Therefore, “the challenge before the administration is no longer merely one of economic stabilisation; it is the imperative of converting reform gains into jobs, higher incomes, lower poverty and a better quality of life for Nigerians.”

Yusuf also noted that a major consequence of the macro‑economic adjustment process has been the expansion of the public‑debt profile, which rose to ₦159.3 trillion as of December 2025. He said that this has been compounded by the securitisation of the legacy ₦23 trillion Ways and Means liabilities, resulting in a markedly larger public‑debt stock.

Yusuf urged the government to address concerns about fiscal leakages, public‑sector efficiency and expenditure discipline because the success of economic reforms also depends on the quality of governance.

He said: “As citizens continue to make significant sacrifices in support of economic reforms, expectations for fiscal prudence, transparency and accountability in the management of public resources have risen correspondingly. The social contract underpinning reform is strengthened when the government demonstrates restraint, efficiency and a commitment to ensuring that every naira of public expenditure delivers tangible value to citizens.”

“Public confidence is strengthened when citizens perceive that the costs of adjustment are borne not only by households and businesses, but also by the political and governing elite. In the final analysis, public trust is the currency that sustains difficult reforms, and that trust is built on fairness, accountability and shared responsibility.”