Nearly three years after Nigeria launched its most sweeping economic reforms in decades, the question is shifting from political courage to economic durability.
President Bola Ahmed Tinubu used his Independence Day address on October 1, 2025 to defend the reforms introduced in 2023. He argued that his administration inherited a “near-collapsed economy” weakened by years of inconsistent policy and poor fiscal discipline. The government, he said, faced a choice between postponing painful adjustments or confronting them early.
Since the removal of fuel subsidies and the unification of the exchange rate in 2023, Nigeria’s macroeconomic indicators have begun to adjust. Inflation, which climbed sharply after subsidy removal, has slowed from a peak of 34.19 percent in mid-2024 to 15.10 percent by January 2026. External reserves have risen to about $50.45bn, their highest level in 13 years. Real GDP expanded by 4.07 percent in the fourth quarter of 2025, the fastest pace in three years. The stock market gained nearly 50 percent in 2025, while foreign direct investment rose sharply in one quarter.
