The Centre for the Promotion of Private Enterprise (CPPE) has said that while the first three years of President Bola Tinubu’s administration have succeeded in stabilising Nigeria’s economy and restoring investor confidence, the gains have yet to translate into significant improvements in the welfare of ordinary Nigerians.
In a review of the administration’s economic performance released on Saturday, CPPE Chief Executive Officer, Dr. Muda Yusuf, said the government inherited an economy plagued by severe fiscal, monetary and foreign exchange challenges, necessitating difficult but inevitable reforms.
According to Yusuf, the economy at the start of the administration was characterised by acute foreign exchange illiquidity, multiple exchange rates, declining external reserves, weakening investor confidence and mounting fiscal pressures driven by fuel subsidies and excessive reliance on Ways and Means financing.
He noted that the removal of fuel subsidies and the unification of exchange rates became the cornerstone reforms of the administration’s economic stabilisation agenda.
Yusuf described the fuel subsidy removal as one of the most significant fiscal reforms undertaken by the government, arguing that it halted a major drain on public finances, reduced opportunities for corruption and arbitrage, and laid the foundation for a more sustainable downstream petroleum sector.
Similarly, he said the exchange rate unification policy addressed longstanding distortions in the foreign exchange market by improving transparency, reducing rent-seeking and enhancing the credibility of the exchange rate system.
However, the CPPE boss acknowledged that the reforms came with substantial adjustment costs, including soaring energy prices, rising transportation and production costs, elevated inflation and worsening poverty levels.
“The welfare impact was considerable. Real incomes declined, poverty conditions worsened and the cost-of-living crisis emerged as one of the most difficult consequences of the reform process,” he stated.
Despite the challenges, Yusuf said there was growing evidence that the reforms had delivered important macroeconomic gains.
He cited improvements in external reserves, which he said are approaching the $50 billion mark, sustained trade surpluses, stronger investor confidence and reduced exchange rate volatility since 2025.
According to him, the economy also recorded 11 consecutive months of disinflation from early 2025 to February 2026 before inflationary pressures resurfaced following geopolitical tensions arising from the Iran-U.S.-Israel conflict, which triggered a spike in global crude oil prices.
Yusuf further pointed to strong performance in the capital market, noting that the Nigerian Exchange (NGX) All Share Index rose from about 55,700 points in 2023 to over 254,000 points in 2026, while market capitalisation increased from approximately ₦30 trillion to more than ₦160 trillion during the period.
He also highlighted the discontinuation of Ways and Means financing and the emergence of domestic refining capacity, led by the Dangote Refinery, as major achievements that have strengthened monetary discipline, improved energy security and reduced dependence on imported petroleum products.
While commending the administration for confronting difficult economic realities and implementing reforms that previous governments had avoided, Yusuf warned that several critical challenges remain unresolved.
He identified insecurity, persistent inflation, weak consumer purchasing power, high energy costs, infrastructure deficits, elevated interest rates and policy inconsistencies as major obstacles to inclusive economic growth.
The CPPE chief also expressed concerns over the country’s rising debt profile, which he said reached ₦159.3 trillion as of December 2025, driven partly by naira depreciation and the securitisation of legacy Ways and Means liabilities.
According to him, fiscal sustainability, revenue mobilisation and public sector efficiency remain major policy concerns that require urgent attention.
Yusuf stressed that the next phase of reforms should focus on translating macroeconomic stability into broad-based economic benefits through job creation, improved productivity, enhanced food security, stronger industrial competitiveness and poverty reduction.
He added that the ultimate success of the administration’s reform agenda would not be measured solely by reserve accumulation, exchange rate stability or stock market gains, but by its impact on incomes, living standards and the quality of life of Nigerians.
“Macroeconomic stability may rescue an economy from the brink, but inclusive prosperity is what secures public confidence, strengthens social cohesion and sustains the reform journey,” Yusuf said.
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