President Bola Tinubu on inauguration day
President Bola Tinubu’s bold reforms position the economy for inclusive growth as he tackles age-long national challenges in his two years in office
BY AYORINDE OLUOKUN/Abuja
President Bola Tinubu worked where others before him had avoided like a landmine by announcing a complete end to fuel subsidy few minutes after he was sworn in on 27 May, 2029. The President further complicated issues for himself and his administration when, after he assumed office, he initiated reforms geared towards the unification of Nigeria’s exchange rate.
In the statement he issued to mark his second anniversary, the President described the two decisions as necessary to “stop our country from further drifting into the precipice.” As justifiable as they are, those two decisions have been blamed for the spiralling inflation and, consequently, the high cost of living that Nigerians have had to grapple with in the past two years of Tinubu’s administration.
While acknowledging that the reforms had indeed resulted in hardship for Nigerians, the President said forgoing or postponing them as some critics have argued, would have been suicidal for the country: “I must restate that the only alternative to the reforms our administration initiated was a fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging Naira, and an economy in a free-fall.”
Ironically, while the bold reforms were being blamed for the hardship in the country, they have also been cited for the stability that is being witnessed in the economy. In his anniversary speech, for instance, the President noted that the reforms and greater transparency in government finances helped to narrow Nigeria’s fiscal deficit sharply from 5.4% of GDP in 2023 to 3.0% in 2024. “We paid off our IMF obligations and grew our net external reserves by almost 500% from $4 billion in 2023 to over $23 billion by the end of 2024,” the President said.
State Governments, the President noted, have been the major beneficiaries of the reforms with the increase in the allocation they received from the federal purse by over N6 trillion in 2024. This, he said, has ensured that the subnational governments can reduce their debt burden, meet salaries and pension obligations on a timely basis, and invest more in critical infrastructure as well as human capital development.
However, the President had also in the past two years embarked on projects aimed at giving succour to the people. Such projects include the revitalisation of over 1,000 Primary Health Centres as well as the upgrading of 5,500 others nationwide. Also, the process for the establishment of six new cancer treatment centres has been initiated, with three of the centres already concluded.
“We offer free dialysis services in pilot tertiary hospitals and subsidise the service in others. Under the Presidential Maternal Health Initiative, over 4,000 women have undergone free caesarean sections. Lastly, we have expanded Health Insurance Coverage from 16 million to 20 million within two years,” the President said while also enumerating his administration’s efforts to secure the country as well as efforts at human capital development.
“To this end, we have significantly expanded access to quality education through infrastructure investments and the student loan scheme to support indigent students in tertiary institutions.
He added that his administration has also launched aggressive initiatives to boost local food production, support farmers, and stabilise food prices. “We have also invested in mechanised farming by procuring thousands of tractors, other farming tools, and fertilisers.”
He listed some of the major road construction and rehabilitation projects being undertaken by his administration across all geopolitical zones to include the Abuja-Kaduna-Zaria-Kano Dual Carriageway, the 9th Mile-Oturkpo-Makurdi Road, the Lagos-Calabar Coastal Highway, Abuja-Lokoja-Benin Road, Enugu-Onitsha Expressway, Oyo-Ogbomoso Road, Sokoto-Badagry Road, Enugu-Port Harcourt Expressway, Second Niger Bridge Access Road to Bodo-Bonny Road.
“We have launched initiatives to improve electricity generation by upgrading generation and transmission infrastructure and investing in off-grid solar energy to power our homes, business premises, industries, schools and hospitals,” the President said.
Furthermore, the President also listed ongoing initiatives by his administration to empower Nigerian youths, among others. As the administration goes into its third year, analysts generally agree that the bold and deliberate policies of the past two years have not only helped stabilise the economy but have built a firm foundation for future growth.
Two Years Well Spent
Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, said Nigeria’s economy is witnessing a significant turnaround, driven by bold reforms, improved coordination, and a renewed focus on national priorities under Tinubu. “This is two years well spent. Mr President confronted Nigeria’s economic realities with bold and necessary choices—tough as they might be—and those measures are now yielding results,” he said.
He also declared that the government’s “Renewed Hope Agenda” is working and winning over investors at home and abroad. The Minister noted that the reform-driven economy has seen four consecutive quarters of GDP growth, exchange rate stability, and a resurgence in private sector confidence.
“We have seen four quarters of successive economic growth, stability in foreign exchange, and appreciation by Nigerians and the international community. Rating agencies have consistently appreciated what we are doing,” he said. Bagudu revealed that the reforms have attracted investors into the country’s agriculture, energy, and infrastructure sectors. “For the first time in 25 years, Nigeria is refining oil. Mr President was courageous enough to allow the sale in naira to our refiners. This is a testament to his belief in our economy.”
Bagudu affirmed that the removal of fuel subsidies and unifying the foreign exchange market are transformative decisions of the administration that have helped to restore fiscal sanity.
The Minister added that the President also ensured that the 2024 and 2025 budgets balance fiscal responsibility and strategic investment in priority sectors. “We have increased spending in health, education, infrastructure, security, and technology. The 2024 budget achieved significant deficit reduction, and more importantly, it showed that we are serious—and the markets believed us.” He added that Tinubu’s respect for the rule of law even to managing inherited debt and Central Bank financing.
“Mr President inherited ₦22.7 trillion in Ways and Means financing, but he insisted on respecting the Central Bank’s independence. That discipline is earning us credibility globally.”
He credited Tinubu’s Economic Coordination Council and the Economic Management Team—led by President Tinubu and Coordinating Minister for the Economy, Wale Edun—with ensuring coherent, results-driven governance.
“This is teamwork. The President is the chief coordinator. He understands the global economic context, and the private sector respects him. We’re not just doing government-to-government coordination—the private sector is part of this reform effort.”
Transformative Investments
Also, Minister of Works Senator Dave Umahi said President Bola Tinubu had in the past two years embarked on transformative investments designed to unlock Nigeria’s economic potential and deepen regional integration.
He listed the four major national projects to include the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Superhighway, the Trans-Saharan Trade Route, and the soon-to-be-procured Ogun-Ondo-Niger Corridor.
On the Lagos-Calabar Coastal Highway, the Minister said the six-lane, over 7000 kilometres concrete-paved highway is an economic corridor and a catalyst for regional growth. “We have completed 30 kilometres of Section 1 and are on track to complete an additional 10 in Section 2. We flagged off Sections 3 and 3B—65 kilometres in total, covering 38 kilometres in Cross River State and 27 kilometres in Akwa Ibom. The host communities’ excitement speaks to these projects’ transformative impact,” the Minister said.
On the Sokoto-Badagry Superhighway, the Minister explained its historic significance, noting that the route was conceived during the Shehu Shagari administration over four decades ago. “The Trans-Saharan Trade Route dates back to colonial-era planning. President Tinubu is now bringing these long-abandoned visions to life.” Umahi reaffirmed that the legacy projects are economically viable, environmentally sustainable, and forward-looking.
“These projects testify to his (Tinubu’s) unwavering commitment to national development and a better future for all Nigerians.”
Unlocking Access to Fair Competition/ Boosting Investors’ Confidence.
Outside of Government, Kola Adesina, the Managing Director of Sahara Group, lauded President Tinubu’s policies for improving transparency, regulatory consistency, and expanding investment opportunities in the country. “The most significant shift I have seen—without a doubt—has been the government’s willingness to confront the long-term inefficiencies within the petroleum sector. President Bola Ahmed Tinubu’s courage in removing the fuel subsidy and market distortions hasn’t been rivalled in the history of Nigeria,” he said.
Adesina said the reforms have unlocked access to fair competition and significantly boosted investor confidence.
“For us, it’s about the free market, open market, and transparency. Nothing beats that. When there’s no clarity or consistency, investment becomes difficult. But now, we know how to price. It’s open to everyone in the market, whether investing or buying—and you know reform is here and guiding every process.”
He commended the Tinubu administration’s progress in critical infrastructure, particularly in the gas and power sectors, where the Sahara Group is active.
“Lately, there’s been significant momentum. We’re seeing more alignment between public policy and private sector expectations. The bottlenecks we faced are giving way to commonsense decisions.
We can predict what’s happening and where the country is headed.”
Adesina further applauded the implementation of the Petroleum Industry Act (PIA), describing it as a game-changer for policy clarity.
In the power sector, Adesina welcomed recent efforts by the government to resolve long-standing financial obligations.
“We’ve seen movement on the payment of legacy debts, especially in the power sector. Once the government clears those debts, new investors will come in, and existing ones—like us—will deepen our investments. There’s life in the business again.”
He also highlighted encouraging developments in Nigeria’s energy transition, driven by President Tinubu’s focus on natural gas and climate-conscious solutions.
“Gas-to-power is gaining ground. We love what’s happening. We’ve invested, and we’re ready to invest more. CNG is now the order of the day—the President has made that a focal point. The carbon credit scheme is also expanding.”
The energy industry expert added that Tinubu administration’s efforts in the last two years represent a solid foundation for Nigeria’s future. “The current energy landscape is anchored on reliability, accessibility, and affordability,” he said.
This was also a bold move by President Tinubu. It was necessary, and he took that decision as well. We are very glad because today we can focus on our businesses. These reforms are saving the economy.
Boost in the Mining Sector
In the mining sector, the Minister of Solid Minerals Development, Dr Dele Alake, revealed that the sector has witnessed an increase in investor interest buoyed by the administration’s mining sector reforms.
He revealed that the Tinubu administration’s new policy of local value addition and a tightened licensing regime attracted over $800 million in processing projects last year.
Alake added that the sector also generated over N38 billion in revenue in 2024, up from just N6 billion the previous year, despite receiving only 18% of its N29 billion budgeted allocation.
According to the Minister, in the first quarter of 2025 alone, two regulatory agencies—the Mining Cadastral Office (MCO) and the Mines Inspectorate—have already recorded N6.9 billion and N7 billion in revenue, respectively.
“Nigeria has not had it this good in the solid minerals sector. We’re restoring confidence, building data, enforcing the law, and returning value to Nigerians from their resources.
“The mining cadastral office, the agency responsible for licensing and processing applications, received over 10,000 applications from local and foreign investors this quarter alone.
“That shows you that this sector is vibrant. The vitality that we’ve introduced into this sector has never been done before the advent of President Tinubu’s administration,” he said.
“We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing,” he said.
It’s Time to Take a Bet on Nigeria
Businessman and Chairman of BUA Group, Alhaji Abdul Samad Rabiu, also said bold reforms of President Tinubu saved the economy from collapse. “The removal of subsidies was needed not only to save the economy but to ensure that Nigerians alone benefit from what is imported. The money saved is now being channelled to infrastructure, to better support for states, and to other developmental priorities. All the states are receiving more money now, and that has made a real difference,” the BUA Group chairman said in a recent article.
He added that the foreign exchange market reforms of the President have led to liberalisation of access to foreign exchange for businesses. According to him, the Lagos-Calabar highway, Sokoto-Badagry road, as well as Kano-Kongolam and the Okpella to Kogi State corridor that the company is building under the tax credit scheme, among others, are critical to tackle logistics challenges bedevilling businesses in Nigeria.
“With better infrastructure, logistics will improve, and businesses will grow. “These reforms have enabled long-term planning and serious investment. These projects are progressing because of the savings from the subsidy removal and FX unification. With more revenue, Nigeria is building,” Rabiu noted.
The BUA Group Chairman also noted that Tinubu’s six-month tariff waiver had helped disrupt hoarding and crash prices in the rice market.
He added that as a result of the reforms, the BUA Group has invested over one billion dollars in the Nigerian economy since President Tinubu assumed office and will invest more in the years ahead. The business mogul urged other investors to take a bet on Nigeria.
“We are doing more, and we will continue to do more. Nigeria has everything—population, arable land, resources, water, and now, strong leadership under President Tinubu. We believe in Nigeria because the fundamentals are now strong. My advice to all is to take a bet on Nigeria. This is the place to be.
“So, for me, what has this administration done right? First, it removed the fuel subsidy, which was the biggest economic scam in our history. Second, it unified the foreign exchange market, and third, it restored stability, fairness, and confidence in the economy. These are the foundations of growth. Nigeria is full of potential. With the right leadership, which we now have, there is no limit to what we can achieve,” he said.
However, as the administration goes into its third year, analysts generally agree that the bold and deliberate policies of the past two years have not only helped stabilise the economy but have built a firm foundation for future growth.
Global Confidence in Nigeria’s Future
As President Tinubu heads into his third year in office, there is hope that the high cost of living, unarguably, the biggest blight of his administration, will continue to ease with the reduction in prices of foodstuffs. Report of the National Bureau of Statistics, NBS, for April, for instance, indicated that headline inflation for the month eased to 23.71% from 24.23% recorded in March.
Also, NBS indicated that Nigeria’s GDP rose by 4.6% in Q4 2024, one of the strongest in a decade, another indication that the bold policies are already yielding results.
And just recently, international rating agency, Moody’s Investors Service, upgraded Nigeria’s long-term foreign-currency issuer rating from Caa1 to B3, with a Stable Outlook.
Moody’s indicated that the improved rating is based on “a more resilient fiscal position, stronger external accounts, and the government’s demonstrated commitment to macroeconomic and structural reforms.”
The rating agency cited the removal of fuel subsidy, unification of the foreign exchange market, increase in non-oil revenue, and restoration of credibility to monetary policy through the CBN’s actions as reasons for the upgrade.
The upgrade has been described as a significant vote of confidence in the country’s economic direction as well as growing international recognition of Nigeria’s progress in stabilising its macroeconomic environment, enhancing fiscal transparency, improving debt sustainability, and implementing market-oriented reforms under President Tinubu’s leadership.
“This positive rating reinforces global confidence in Nigeria’s future and represents a milestone in the administration’s goal of restoring investor trust, unlocking economic potential, and securing long-term prosperity”, President Tinubu said in reaction to the development.
The influential Financial Times of London had also, in an editorial published on the cusp of the second anniversary of Tinubu’s administration, acknowledged that Nigeria has turned the corner in the past two years.
The influential publication noted that “Nigeria is in a better shape than at any time in the past decade,” as it noted that Tinubu, “has stabilised the economy and laid the groundwork for a broader recovery.”
“On day one, Tinubu removed a ruinously expensive fuel subsidy. More important still, the central bank has restored monetary policy orthodoxy after a shambolic era in which only cronies with access to cheap dollars benefited. After a dangerous overshoot, the naira has stabilised, with the gap between the official and black market rate shrinking to almost nothing.
“The central bank has stopped printing money to pay for government profligacy. Politicians still spend too much, often on fripperies like an extravagant presidential jet, but at least the government has begun to increase tax receipts.
“Investors do not live in constant fear of a devaluation and can readily access dollars. That may eventually help Nigeria to diversify, but short term, it is positive that oil production has recovered from a nadir of 1mn barrels a day to nearly 1.5mn last month. Oil theft has been reduced and local companies are squeezing more out of marginal fields,” the publication said.