Under President Bola Ahmed Tinubu’s administration, Nigeria’s economic recovery efforts are coordinated through various government agencies and strategic initiatives rather than a single dedicated agency. Key components include:
1. National Economic Council (NEC): Chaired by Vice President Kashim Shettima, the NEC advises the President on economic policy and includes state governors and the Central Bank Governor. It plays a pivotal role in shaping and implementing economic strategies.
2. Federal Ministry of Finance: Led by Minister Wale Edun, this ministry oversees fiscal policies, budgeting, and financial regulations. It is instrumental in implementing reforms aimed at economic stabilization and growth.
3. Budget Office of the Federation: Responsible for budget preparation and implementation, this office ensures alignment with national economic objectives. In 2024, President Tinubu appointed Tanimu Yakubu as its Director General.
4. Revenue Mobilisation Allocation and Fiscal Commission (RMAFC): This commission advises on revenue allocation and fiscal matters, contributing to the equitable distribution of resources.
5. National Credit Guarantee Company: Set to be established in May 2025, this entity aims to enhance credit access for businesses and individuals, fostering economic growth.
President Tinubu’s administration has initiated several reforms, including the removal of
fuel subsidies and currency devaluation, to address economic challenges. These measures
have led to increased living costs, prompting both support and criticism.
In summary, Nigeria’s economic recovery under President Tinubu is managed through a
collaborative framework involving multiple agencies and strategic reforms, each
contributing to the nation’s economic revitalization.
Reforms, fiscal gains signal Nigeria’s economic recovery
Finance Minister— Edun
He made the disclosure in Abuja during the 2025 budget defense before the Senate Committee on Finance Joseph Inokotong.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has stated that Nigeria’s economy is making significant strides in recovery and growth.
Edun, who was joined by the Minister of State for Finance, Dr. Doris Uzoka-Anite, the Permanent Secretary, Federal Ministry of Finance, Mrs. Lydia Shehu Jafiya, the Accountant General of the Federation, Dr. Oluwatoyin Sakirat Madein, as well as the Ministry’s Directors, outlined the President Bola Ahmed Tinubu-led Administration’s efforts to stabilise the economy through key reforms and fiscal measures.
Edun highlighted the broad impact of the reforms to include the liberalisation of the foreign
exchange market, deregulation of petroleum pricing, and the expansion of domestic refining
capacity. He explained that these measures are driving fiscal stability, reducing
inefficiencies, and creating a more sustainable economic framework.
The Minister acknowledged, however, that while the reforms may bring short-term
discomfort, their long-term benefits will include job creation, poverty reduction, and greater
economic resilience. He emphasized the government’s commitment to infrastructure
development, particularly in digital networks and energy, to improve productivity and
attract private sector investments.
In a statement, Mohammed Manga, Director, Information and Public Relations in the
Federal Ministry of Finance said the Senate Committee on Finance approved the Ministry’s
N38 billion 2025 budget.
They commended the Ministry’s leadership for its commitment to fiscal discipline and
economic recovery.
Edun expressed confidence in Nigeria’s brighter economic future, noting that the reforms
will transform the country’s economic landscape and improve the standard of living.
Under the leadership of Vice President Kashim Shettima, the National Economic Council
(NEC) has undertaken several initiatives aimed at bolstering Nigeria’s economic stability
And growth. Key outcomes from recent NEC meetings include:
1. Food Security and Agricultural Support
In February 2024, the NEC addressed challenges in the agricultural sector by focusing on enhancing food security and affordability. The council resolved to make fertilizers more accessible to farmers and proposed the establishment of Agro-Rangers to safeguard farms from insecurity. Vice President Shettima, emphasized the importance of collaborative efforts to develop actionable strategies for overcoming economic challenges.
2. Economic Stability and Policy Reforms
At the 136th NEC meeting in September 2023, Vice President Shettima highlighted economic stability as a priority for the Tinubu administration in 2024. He urged federal, state, and local governments to re-evaluate priorities, streamline processes, and make bold decisions addressing social issues such as social protection, investment, and nutrition. The Vice President commended President Bola Ahmed Tinubu’s courage in implementing bold reforms to re-position the economy.
3. Combating Malnutrition
In September 2024, the NEC endorsed the N-774 programme as a primary platform to combat malnutrition across Nigeria. This decision followed a presentation on the nation’s nutritional status by the Coordinating Minister of Health and Social Welfare, Ali Pate. The council resolved to prioritize nutrition interventions in the 2025 budget at all government levels and encouraged development partners to provide financial and technical assistance for monitoring and scaling successful interventions.
4. Data Collection and Technological Integration
During the 2024 World Population Day commemoration, Vice President Shettima emphasized the need for improved data collection and technological deployment to generate comprehensive evidence guiding government decisions and investments. He advocated for the use of advanced technology to strengthen data systems and institutions, which would support resilient and equitable development pathways.
5. Addressing Economic Challenges and Poverty
In December 2023, Vice President Shettima called for a strong alliance among all government levels and development partners to alleviate poverty and enhance Nigerians’ quality of life. He stressed the importance of aligning efforts to create an environment where every citizen has the opportunity to thrive.
These initiatives reflect the NEC’s commitment to addressing Nigeria’s economic challenges
through collaborative and strategic approaches under Vice President Shettima’s leadership.
Source: Federal Ministry of Information
Under President Bola Tinubu’s leadership, Nigeria has undertaken significant
economic reforms aimed at stabilizing and revitalizing the economy. Here’s an
overview of the outcomes in key areas:
1. Fuel Subsidy Removal:
In May 2023, President Tinubu announced the removal of the longstanding fuel subsidy, a
move that had been draining substantial government resources. By July 2023, the
government reported savings exceeding 1 trillion naira (approximately $1.32 billion) within
just over two months of subsidy removal.
However, the immediate aftermath saw a sharp increase in fuel prices, leading to
widespread public protests and economic hardship for many Nigerians. In response, the
government partially reversed the subsidy removal by capping retail fuel and electricity
prices, aiming to alleviate the burden on citizens.
2. Naira Devaluation and Foreign Exchange Reforms:
In June 2023, the Central Bank of Nigeria (CBN) suspended its governor and initiated the
unification of the country’s multiple exchange rates. This policy shift led to a significant
devaluation of the naira, with the currency losing over 70% of its value against the US dollar.
While this move was intended to attract foreign investment and reflect the true value of the
naira, it also contributed to increased inflation, reaching 27% year-on-year in October 2023.
3. Social Investment Programs:
To mitigate the adverse effects of these economic reforms on vulnerable populations, the
government implemented several social investment measures:
– Release of Grains: The government released cereals from the national grain reserve to
ease food insecurity.
– Subsidized Fertilizer: Subsidized fertilizer was provided to farmers to support agricultural
productivity.
– Civil Service Wage Award: A wage award was granted to civil servants to help offset the
impact of rising living costs.
– Suspension of VAT on Diesel: The government suspended the Value Added Tax (VAT) on
diesel to reduce transportation costs.
Despite these initiatives, the effectiveness of social investment programs has been
questioned due to concerns about transparency and the actual impact on the most affected
populations.
4. Economic Growth and Inflation:
The IMF projected Nigeria’s economic growth at 2.9% for 2023 and 3% for 2024, with
inflation reaching 27% year-on-year in October 2023.
While the economy is projected to grow, the high inflation rate continues to erode
purchasing power and poses challenges for economic stability.
In summary, President Tinubu’s economic reforms have led to significant fiscal savings and a more market-driven economy. However, these changes have also resulted in increased inflation and public discontent, highlighting the need for effective social support mechanisms and transparent governance to ensure that the benefits of these reforms are widely shared.
Nigeria’s Economic Reforms: Challenges and Progress
Sources:
Under the leadership of Chairman Dr. Muhammad Shehu, the Revenue Mobilization
Allocation and Fiscal Commission (RMAFC), has recently undertaken several significant
initiatives to enhance Nigeria’s fiscal policies and revenue generation.
Key outcomes from recent meetings include:
1. Support for Tax Reforms
The RMAFC has expressed its support for President Bola Tinubu’s tax reform agenda. In a press release, the Commission refuted media reports suggesting opposition to the reforms, clarifying its commitment to collaborating with the federal government to improve tax administration and increase revenue generation.
2. Advocacy for Domestic Revenue Mobilization
Chairman Dr. M.B. Shehu emphasized the need for robust domestic revenue mobilization as a catalyst for national development. He called for comprehensive strategies to enhance internal revenue generation, reduce dependence on external borrowing, and ensure sustainable economic growth.
3. Commendation of Cost-Cutting Measures
The RMAFC applauded President Tinubu’s directive to reduce the size of official convoys for ministers and government officials. The Commission urged state governments to adopt similar measures to minimize governance costs and allocate more resources to developmental projects.
4. Collaboration with NEITI
In a bid to enhance transparency in Nigeria’s extractive sector, the RMAFC has committed to fostering greater collaboration with the Nigeria Extractive Industries Transparency Initiative (NEITI). This partnership aims to improve accountability and ensure that revenues from natural resources are effectively managed and utilized for national development.
5. Legislative Amendments and Alternative Funding
The National Economic Council (NEC) approved the RMAFC’s proposal to seek amendments to its enabling Act through the National Assembly. Additionally, the NEC endorsed an alternative funding mechanism for the Commission, approving that RMAFC be funded with 0.05% of non-oil federation revenue, subject to legislative scrutiny.
These initiatives reflect the RMAFC’s proactive approach to reforming Nigeria’s fiscal
landscape, promoting efficient resource allocation, and ensuring sustainable economic
development.
Sources:
As of February 2025, Nigeria’s economy is confronting several significant challenges,
including high inflation, rising living costs, unemployment, and the impact of global oil
price fluctuations.
Inflation and Rising Cost of Living:
Inflation has surged to 34.8% as of December 2024, driven by the removal of fuel subsidies and the devaluation of the naira. This has led to increased prices for essential goods and services, exacerbating the cost of living for many Nigerians.
Unemployment and Job Creation:
The unemployment rate remains high, with a significant portion of the workforce engaged in informal employment. Efforts to stimulate job creation through economic reforms and diversification are ongoing, but challenges persist in achieving substantial employment growth.
Global Oil Price Fluctuations:
Nigeria’s economy is heavily influenced by global oil prices. While recent increases in oil prices have provided some relief, the country continues to face challenges in meeting its oil production targets, which affects foreign exchange earnings and economic stability.
Economic Outlook:
The Nigerian Economic Summit Group (NESG) projects a GDP growth rate of 5.5% for 2025, contingent upon the successful implementation of stabilization-focused reforms. However, risks such as insecurity, lower oil production, and rising fuel and food prices could impede this growth.
In summary, Nigeria is navigating a complex economic landscape characterized by high inflation, unemployment, and the challenges of global oil price volatility. While there are efforts to stabilize and grow the economy, achieving sustainable development will require addressing these multifaceted issues.
Recent Developments in Nigeria’s Economic Reforms
Sources:
Nigerian Economic Summit Group
In January 2025, President Bola Tinubu announced plans to establish the National Credit Guarantee Company (NCGC) by the end of the second quarter. This initiative aims to enhance access to credit for individuals and critical sectors of the Nigerian economy, thereby stimulating economic growth.
The NCGC will operate as a partnership among key government institutions—including the Bank of Industry, Nigerian Consumer Credit Corporation, Nigerian Sovereign Investment Authority, and Ministry of Finance Incorporated—alongside private sector entities and multilateral organizations. This collaborative approach is designed to strengthen financial system confidence, expand credit access, and support underserved groups such as women and youth.
The establishment of the NCGC is part of a broader strategy to address economic challenges, including high inflation rates and the escalating costs of food and essential drugs. President Tinubu has set an ambitious target to reduce inflation from its current rate of 34.6% to 15% by the end of 2025. The NCGC is expected to play a pivotal role in this effort by facilitating access to credit, thereby promoting local manufacturing and boosting economic activities.
The National Institute of Credit Administration (NICA) has expressed strong support for the NCGC, viewing it as a critical step in addressing the challenges faced by micro, small, and medium enterprises (MSMEs) in accessing business loans. NICA anticipates that the NCGC will catalyze job creation, stimulate robust economic activities, and enhance the resilience of Nigeria’s economy.
In summary, the establishment of the National Credit Guarantee Company is a strategic move by the Nigerian government to improve credit access, support economic growth, and address key challenges such as high inflation and the rising costs of essential goods.
Sources:
Nigeria needs to double economic growth within a year or two,
Finance Minister, Edun says:
DAVOS, Switzerland, Jan 23 – Nigeria needs to double economic growth within the next year or two from an annualized rate of 3.5% in the third quarter to lift its population out of poverty, its finance minister told Reuters on Thursday at the World Economic Forum’s annual meeting.
Finance Minister and Coordinating Minister for the Economy Wale Edun said Nigeria was on the path to growth after a year of tough economic reforms that sent inflation soaring, but should open the door for more investment.
Edun said he had been meeting in Davos this week with business leaders in the areas of consumer goods, food and beverages, financial services and infrastructure to promote investments, he said in a Thursday interview.
“It’s a steady trickle now. What we want is a stream and at the end of the day a flood of
investment,” he said. Nigeria has been trying to encourage private investment rather than
rely on borrowing to create jobs, as the government searches for a solution to sluggish
growth, double-digit inflation and a heavy debt burden. President Bola Tinubu has vowed to
expand the economy by at least 6% a year, create jobs and unify the exchange rate, while
also tackling rampant insecurity. Tinubu scrapped a popular but costly petrol subsidy and
lifted foreign exchange trading restrictions. That contributed to consumer inflation, but
Edun expressed confidence that Nigerians would soon be past their cost of living crisis.
Central Bank Governor Olayemi Cardoso said he expected the economy to expand by 4.17%
this year, driven by ongoing reforms and stabilising inflation.
Source: Reuters
Nigeria seeing positive results from fiscal reforms, World Bank says
ABUJA, Oct 17, 2023. (Reuters) – Nigeria is beginning to reap the benefits of significant policy reforms following a near fiscal crisis in 2020, but must stay the course, the World Bank said on that Thursday.
President Bola Tinubu has instituted reforms including ending a decades-old petrol subsidy
and devaluing the currency to try to boost output, which has been sluggish for about a
decade.
World Bank lead economist for Nigeria Alex Sienaert said that Nigeria’s fiscal deficit has reduced from 6.2% of Gross Domestic Product (GDP) in the first half of last year to 4.4% in the first half of this year, with the reforms leading to robust growth in service sectors, stability in the oil sector, and improvements in the foreign exchange market.
“We are seeing a fiscal consolidation underway with the fiscal deficit shrinking and that’s driven by a combination of expenditure being roughly constant in real terms, and revenues which are surging,” Sienaert said during a presentation in the capital Abuja.
“This surge in revenues is largely due to the removal of the implicit forex subsidy that was happening before, which was even larger than the petrol subsidy, which we talk a lot about,” he said.
The World Bank expects Nigeria’s economy to grow at 3.3% this year, rising to 3.6% in 2025.
Nigeria’s fiscal crisis had been mounting following two economic recessions in the last eight years due to a combination of economic mismanagement and policy challenges.
The recent reforms, including a focus on price stability and a unified market-reflective exchange rate by the central bank, have proven critical in stemming an economic downturn, but they have stoked inflation.
“The ultimate purpose here, of course, is jobs and opportunities,” Sienaert said.
People shop at a fresh food market in Oyingbo, Lagos, Nigeria December 17, 2021. Picture taken December 17, 2021. REUTERS
Under the leadership of Director-General Tanimu Yakubu, the Budget Office of the Federation (BOF) has recently undertaken several significant initiatives to enhance Nigeria’s fiscal management and economic planning.
Key outcomes from recent meetings and activities include:
1. 2025 Budget Preparation Training Exercise
In early 2024, the BOF organized a comprehensive training exercise for Ministries, Departments, and Agencies (MDAs) to facilitate the preparation of the 2025 budget. Director-General Yakubu emphasized the importance of aligning budget proposals with the administration’s strategic priorities, focusing on stimulating economic activities, job creation, and infrastructure development. The training aimed to ensure that MDAs are well-equipped to formulate budgets that reflect these objectives.
2. Public Presentation of the 2024 Budget Proposals
On November 29, 2023, the BOF, in collaboration with the Ministry of Budget and Economic Planning, publicly presented the 2024 budget proposals. This event, led by the Honorable Minister of Budget and Economic Planning, provided a platform for stakeholders, including civil society organizations, the private sector, and the general public, to engage with the proposed fiscal plans. Director-General Yakubu highlighted the government’s commitment to transparency and inclusivity in the budgeting process.
3. Release of the 2024 First Quarter Budget Implementation Report
In June 2024, the BOF published the First Quarter Budget Implementation Report for 2024. The report provided detailed insights into revenue generation, expenditure patterns, and the performance of key sectors. It also identified challenges encountered during the implementation phase and outlined corrective measures to enhance fiscal performance in subsequent quarters.
4. Issuance of the 2025 Budget Call Circular
In November 2024, the BOF issued the 2025 Budget Call Circular, which serves as a guideline for MDAs in preparing their budget submissions. The circular emphasized the administration’s focus on stimulating economic activities in targeted sectors, job creation, and improving critical infrastructure under the Renewed Hope Infrastructure Development Fund. It also outlined the approval of sovereign guarantees for long-term financing of up to ₦3 trillion for the recapitalization of key financial institutions, aiming to support businesses and economic development.
5. Development of the 2025–2027 Medium Term Expenditure Framework and Fiscal
Strategy Paper (MTEF/FSP)
The BOF has been instrumental in formulating the 2025–2027 MTEF/FSP, which outlines the federal government’s fiscal policies and macroeconomic projections for the medium term. This framework incorporates recent economic reforms, such as the unification of the exchange rate regime and the removal of fuel subsidies, aiming to achieve greater market-driven stability and create fiscal space for critical infrastructure and social services.
These initiatives reflect the Budget Office’s commitment to enhancing fiscal discipline,
transparency, and strategic economic planning under the guidance of Director-General
Tanimu Yakubu.
Sources:
Budget Office of the Federation
Under the leadership of Finance Minister Wale Edun, the Federal Ministry of Finance has recently undertaken several significant initiatives aimed at bolstering Nigeria’s economic growth and stability.
Key outcomes from recent meetings and engagements include:
1. Debt Reduction Milestone
In July 2024, the Federal Government achieved a significant milestone by paying off ₦4.5 trillion in Ways and Means advances, with an additional ₦2.5 trillion scheduled for payment in the second quarter. This move underscores the government’s commitment to reducing national debt and enhancing fiscal responsibility.
2. Inauguration of the MOFI Board of Directors
Finance Minister Wale Edun inaugurated the Board of Directors for the Ministry of Finance Incorporated (MOFI) in July 2024. This strategic move aims to strengthen the management of government investments and assets, ensuring they contribute effectively to national development.
3. Emphasis on Digitalization for Efficiency
The Ministry is spearheading digitalization initiatives to achieve greater efficiency and cost reduction in governance. Minister Edun highlighted that embracing digital solutions is a cost-effective strategy to enhance transparency and streamline government operations.
4. Strengthening Economic Ties with France
In November 2024, Nigeria and France signed agreements to boost infrastructure development and food security. These deals include a €300 million investment plan supporting sectors such as healthcare, transportation, agriculture, renewable energy, and human capital development. Additionally, Nigerian banks Zenith Bank and United Bank for Africa expanded their operations into France, enhancing cross-border financial collaboration.
5. Commitment to Private Sector-Led Growth
The Federal Government has reaffirmed its commitment to fostering private sector-led economic growth. Collaborations with international financial institutions, such as the International Finance Corporation (IFC), are being strengthened to support this agenda, highlighting the government’s focus on creating an enabling environment for private investments.
6. Focus on Economic Growth and Poverty Reduction
At the World Economic Forum in Davos in January 2025, Finance Minister Wale Edun emphasized the need to double Nigeria’s economic growth from the current 3.5% to significantly higher rates within the next year or two. This acceleration is deemed crucial for lifting the population out of poverty and achieving sustainable development.
These initiatives reflect the Ministry’s proactive approach to addressing Nigeria’s economic challenges through strategic partnerships, fiscal reforms, and a strong emphasis on digital transformation.
Conclusion
President Tinubu’s economic recovery plan focuses on structural reforms, financial discipline, and fostering private sector growth. While short-term challenges persist, the administration’s long-term vision aims for a more sustainable and diversified Nigerian economy.
Sources: