Tinubu’s Economic Reforms Stabilise Nigeria’s Economy, But Welfare Gains Still Lag – CPPE

The Centre for the Promotion of Private Enterprise (CPPE) says President Bola Tinubu’s first three years in office have largely succeeded in restoring macroeconomic stability, even though many Nigerians are yet to feel meaningful improvements in their daily lives. The organisation noted that the administration inherited a fragile economy marked by forex shortages, multiple exchange rates, and weakening investor confidence.

According to CPPE Chief Executive Officer, Dr Muda Yusuf, the early phase of the administration focused heavily on fixing structural imbalances in foreign exchange management, fiscal operations, and subsidy-related distortions. He explained that fuel subsidy removal and exchange rate unification became the central pillars of the reform agenda.

Yusuf stated that while these reforms strengthened public finances and improved transparency in the foreign exchange market, they also triggered severe short-term economic pain. Energy costs surged, transport and production expenses rose sharply, and the depreciation of the naira intensified imported inflation.

He noted that the immediate impact included declining real incomes and worsening cost-of-living conditions for households. However, he stressed that these reforms were necessary to correct long-standing inefficiencies that had weighed down the economy for years.

Despite the hardship, CPPE highlighted several signs of macroeconomic recovery. Nigeria’s external reserves improved significantly, approaching $50 billion, while the country maintained a trade surplus and saw renewed investor confidence. Exchange rate volatility also reportedly eased from 2025 onwards.

The report added that the capital market recorded strong gains, with the Nigerian Exchange All-Share Index rising from about 55,700 points in 2023 to over 254,000 points in 2026. Market capitalisation also surged from around N30 trillion to more than N160 trillion, reflecting renewed financial market optimism.

Yusuf further noted that the discontinuation of Ways and Means financing improved monetary discipline, while emerging domestic refining capacity—driven by projects like the Dangote Refinery—helped conserve foreign exchange and strengthen energy security.

However, he warned that major challenges remain unresolved, including high inflation, weak purchasing power, insecurity, and rising public debt, which stood at N159.3 trillion as of December 2025. He also pointed to policy inconsistency, infrastructure gaps, and high interest rates as barriers to industrial growth and job creation.

Looking ahead, the CPPE urged the government to focus on converting macroeconomic stability into real improvements in citizens’ lives through job creation, poverty reduction, and stronger industrial productivity. Yusuf emphasised that reforms must now shift from stabilisation to inclusive growth.

He also stressed the importance of governance and fairness in sustaining public trust, warning that reforms must be supported by “shared sacrifice” across all levels of society, not just households and businesses. Ultimately, he said the success of Tinubu’s economic agenda will be judged not by financial indicators alone, but by its impact on living standards, employment, and national well-being.

source: punch