By Jimmy Fatunbi
When Asiwaju Bola Ahmed Tinubu was elected President of the Federal Republic of Nigeria in 2023, the country faced significant economic challenges that demanded difficult decisions, sustained policy implementation and a collective commitment to building a more productive and prosperous nation. President Tinubu made economic restructuring a central component of his administration’s Renewed Hope Agenda.
Three major changes in Nigeria’s economic management under his administration are the removal of the petrol subsidy, reforms to the foreign exchange market and the restructuring of the country’s tax administration framework.
These measures reflect an approach aimed at addressing longstanding fiscal challenges, improving government revenue and creating a more predictable environment for investment and enterprise.
The removal of the petrol subsidy was one of the administration’s earliest and most consequential decisions. The declaration, “Subsidy has gone,” remains an indelible part of Nigeria’s recent economic history. Although the removal has placed considerable financial pressure on households and businesses, it has also altered the distribution of public resources and created opportunities for governments to address critical infrastructure and development needs. An estimated ₦15.8 trillion in subsidy savings has been distributed across the federation, with states receiving approximately ₦6.52 trillion through the federation’s allocation system. The extent to which these additional resources translate into better public services and improved living standards now depend on effective allocation, transparent management and diligent implementation by state governments.
Similarly, before President Tinubu assumed office in May 2023, Nigeria’s foreign exchange market was characterised by significant distortions, multiple exchange-rate windows and a substantial disparity between official and parallel-market rates. His administration’s foreign exchange reforms have sought to address these structural problems. The unification of exchange-rate windows has reduced market segmentation and opportunities for arbitrage, while electronic trading systems have supported greater transparency and price discovery. The clearance of verified foreign exchange backlogs was also an important step towards addressing outstanding obligations and restoring confidence among market participants.
These developments represent progress towards a more transparent and functional foreign exchange market. Nevertheless, sustaining that progress will require consistent policies, improved market liquidity, greater exchange-rate stability and continued investor confidence. The long-term value of the reforms will ultimately depend on their capacity to support businesses, encourage investment and strengthen Nigeria’s external economic position.
The administration has also introduced major reforms to Nigeria’s tax system. The enactment of four tax reform laws—the Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board (Establishment) Act, 2025—provides a new legal framework for tax administration and coordination across the tiers of government. The reforms seek to simplify tax obligations, reduce administrative fragmentation, improve compliance and create a more predictable environment for businesses, while strengthening the government’s capacity to mobilise revenue for public services and national development.
With the new framework in operation, its success will be measured by the extent to which it simplifies compliance, improves administrative efficiency, strengthens revenue collection and supports a more favourable business environment. Effective implementation, transparent administration and clear communication with taxpayers will be crucial to achieving these objectives.
Another important ambition of the Tinubu administration is to expand Nigeria’s economy through increased productivity, investment, industrialisation and diversification. In pursuit of this objective, the administration launched the Nigeria Industrial Policy 2025 on 17 February 2026. The policy provides a framework for strengthening domestic manufacturing, reducing import dependence, promoting local production and improving Nigeria’s industrial competitiveness.
Nigeria’s economy also recorded real GDP growth of 4.43 per cent in the second quarter of 2026, according to the National Bureau of Statistics. Both the oil and non-oil sectors contributed to the expansion. While the figure indicates continued economic growth, sustaining that momentum and translating it into productive employment, stronger household purchasing power and improved living standards remain important priorities. These ambitions form part of the broader goal of building a US$1 trillion economy by 2030.
With sustained commitment to reform, Nigeria has an opportunity to build a more productive and diversified economy. Continued investment in reliable electricity, transport infrastructure, stronger institutions, access to finance and a supportive business environment can help accelerate growth and expand opportunities for small and medium-sized enterprises. If effectively implemented, these measures could stimulate industrial expansion, attract investment, generate productive employment and strengthen local industries. Their ultimate significance will lie in the extent to which they improve economic opportunities and living standards for Nigerians.
The Renewed Hope Agenda places economic transformation, productivity and shared prosperity at the centre of the administration’s development ambitions. With its vast human, agricultural, mineral and entrepreneurial resources, Nigeria possesses considerable potential to overcome its economic challenges and develop a stronger, more diversified and self-reliant economy. Realising that potential, however, requires more than policy announcements. It demands sustained implementation, accountability, investment in productive sectors and support for local enterprises.
For ordinary Nigerians, the promise of economic reform lies in the prospect of more jobs, thriving businesses, improved purchasing power and better living standards. As the policies continue to be implemented, their impact will be judged by whether these benefits reach households and communities across the country. The journey towards economic recovery and prosperity may require patience and perseverance, but sustained progress remains possible if reforms deliver tangible improvements in people’s lives.
Rwanda offers an example of how sustained economic reforms, infrastructure investment and institutional development can contribute to economic progress. Its experience demonstrates the importance of consistent policies and a long-term commitment to development, even in countries facing profound challenges. Malaysia also offers valuable lessons in economic diversification, having transformed its economy over several decades through industrialisation, export expansion and investment in manufacturing and services.
Nigeria can draw lessons from these experiences while pursuing a development path suited to its own circumstances. Through sustained economic reforms, investment in productive sectors and effective implementation of development policies, the country can work towards unlocking its resources, expanding employment opportunities and improving living standards. The experiences of Rwanda and Malaysia underline the importance of continuity, institutional capacity and long-term planning in building a more diversified economy.
Ultimately, the success of President Tinubu’s economic agenda will be measured by its impact on the lives of ordinary Nigerians. The Renewed Hope Agenda represents an ambition to transform the economy and create opportunities for broader prosperity. Its lasting significance will depend on whether economic growth translates into tangible benefits, prosperity becomes more widely shared and citizens have greater opportunities to thrive.
