The Federal Government has acknowledged that its economic reforms have delivered significant fiscal and macroeconomic gains but admitted that the benefits have yet to fully translate into improved living conditions for millions of Nigerians….
The Federal Government has acknowledged that its economic reforms have delivered significant fiscal and macroeconomic gains but admitted that the benefits have yet to fully translate into improved living conditions for millions of Nigerians.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, made this known on Wednesday while unveiling the government’s Nigeria’s Reform Scorecard, which assesses the impact of the Tinubu administration’s economic policies since May 2023.
The scorecard focuses on the removal of the petrol subsidy, foreign exchange reforms and other measures introduced to address Nigeria’s long-standing fiscal and economic challenges.
According to the government, the reforms mobilised ₦15.8 trillion in subsidy savings between June 2023 and December 2025.
The Federal Government received ₦5.4 trillion of the savings, while ₦10.4 trillion was shared among the 36 states and 774 local governments.
The government also recorded ₦3.1 trillion in additional independent revenue and raised ₦11.9 trillion through incremental borrowing.
Together, these provided the Federal Government with ₦20.4 trillion in additional resources.
The funds helped finance ₦30.64 trillion in incremental expenditure, including ₦9.39 trillion for wage adjustments, minimum wage increases and allowances, ₦9.37 trillion for external debt servicing and ₦6.5 trillion for strategic infrastructure.
The government said the figures demonstrated that the removal of the fuel subsidy was not primarily motivated by the desire to raise revenue.
Rather, it said the policy was designed to tackle corruption and distortions in the subsidy regime and create fiscal space for government.
The scorecard compares Nigeria’s economic position in May 2023 with its position in 2026 and a projection of where the country could have been without the reforms.
The government estimates that 27 states which could not reliably pay salaries in May 2023 would have risen to at least 30 states facing similar difficulties by 2026 had the reforms not been implemented.
It also projects that the premium between the official and parallel foreign exchange markets could have exceeded 150 per cent, compared with less than five per cent currently.
The government said the reforms had also helped strengthen Nigeria’s external position.
Gross foreign reserves have risen to $52.5 billion from about $35 billion, while net reserves increased from approximately $3 billion to $34.8 billion.
Real GDP growth has also improved to 3.89 per cent from 2.31 per cent at the May 2023 baseline.
Inflation, meanwhile, has fallen to 15.91 per cent from 22.41 per cent, while food inflation declined from 24.82 per cent to 17.52 per cent as of June 2026.
The government also pointed to the expansion of the stock market, whose capitalisation has risen from about ₦31 trillion to approximately ₦150 trillion.
It cited Nigeria’s sovereign credit rating upgrade by S&P Global and the country’s exit from the FATF grey list as further evidence of improved investor and international confidence.
But the government conceded that the reforms had imposed serious costs on Nigerians.
The Monetary Policy Rate has climbed from 18.5 per cent to 26.5 per cent, while petrol prices have risen from roughly ₦185 to between ₦1,100 and ₦1,400 per litre.
The government also acknowledged that poverty and household welfare remained areas requiring urgent attention.
“On food and household welfare, our own assessment is candid: this remains work in progress,” Oyedele said.
He said the administration’s next phase would focus on ensuring that macroeconomic stability translates into tangible improvements in household welfare.
According to him, this would include expanding cash transfers, deepening agricultural interventions, improving the quality of public spending and ensuring that states and local governments deliver greater benefits to citizens.
He also said the government would continue implementing the Nigeria Tax Act and work towards raising the tax-to-GDP ratio while protecting low-income earners and small businesses.
Oyedele urged Nigerians to support policies that advance the economy while holding government accountable through constructive criticism.
“We are not here to pretend these reforms were painless. We are here to show you, honestly and with the numbers, what they cost, the benefits they delivered, and the harm they prevented,” he said.
