By Rotimi Asher
President Bola Tinubu’s bold economic reforms have ignited a transformative rebound in Nigeria’s economy, fostering robust growth, renewed investor confidence, and macroeconomic stability as 2026 unfolds.
After inheriting a battered economy marked by fiscal deficits, currency volatility, and subsidy-induced distortions, Tinubu’s administration has delivered tangible results. GDP expanded by 4.3% in 2025—the strongest in over a decade—while foreign reserves climbed to $45 billion, inflation eased to single digits, and the naira stabilized around ₦1,500 per dollar. These gains signal a decisive shift from stagnation to momentum.
Key Reforms Driving Change
Tinubu’s administration launched sweeping measures starting in May 2023, targeting structural inefficiencies head-on. The removal of the opaque fuel subsidy regime, which drained ₦4.39 trillion annually, freed up billions for critical sectors like healthcare, education, and infrastructure. This single stroke ended decades of fiscal hemorrhage, redirecting funds to build human capital and productive capacity.
Foreign exchange unification dismantled the multiple-rate system, eliminating arbitrage opportunities that fueled corruption and scarcity. Coupled with Central Bank of Nigeria’s monetary tightening—raising the policy rate to 27.5%—these policies curbed imported inflation and restored predictability for businesses. The result was a broad-based GDP surge across 13 sectors, from agriculture to ICT, with non-oil growth hitting 4.8%.
Nigeria’s return to international capital markets underscored this turnaround. A $3 billion Eurobond issuance in late 2025 attracted $13 billion in orders—a staggering 453% oversubscription—reflecting global investors’ appetite. Fitch Ratings upgraded Nigeria’s outlook from B- to B, citing improved policy credibility and debt sustainability. Foreign direct investment inflows jumped 35% year-on-year, drawn by transparent reforms and a business-friendly environment.
Infrastructure and Sectoral Revival
Massive infrastructure investments are the bedrock of this revival, spanning roads, power generation, ports, railways, and agriculture to boost food security and living standards. The $20 billion Lagos-Calabar Coastal Highway and the Kano-Maradi rail line exemplify flagship projects set for completion in 2026, slashing transport costs and unlocking trade corridors.
The Renewed Hope Ward Development Programme engages 10 million Nigerians across 8,809 wards, empowering 1,000 individuals per ward through skills in trade, mining, agro-processing, and renewable energy. Youth-focused initiatives like the Nigerian Education Loan Fund (NELFUND), which disbursed ₦150 billion in student loans, the 3 Million Technical Talent (3MTT) digital skills program training 1 million coders, and compressed natural gas (CNG) conversion kits reducing transport costs by 60% directly tackle unemployment (now at 4.5%) and living expenses.
Agriculture benefits from 2,000 tractor procurements, the Bank of Agriculture’s ₦500 billion recapitalization, and fertilizer subsidies reaching 10 million farmers. Tax reforms, including harmonizing levies and introducing a 7.5% development levy on high earners, ease burdens on low-income households while broadening the tax base.
Impacts on Daily Lives
These reforms deliver grassroots gains: market women report stable food prices, small businesses access cheaper credit via the ₦75 trillion Credit Corps, and power supply improves with 2,000 megawatts added via Siemens and Azura plants. Finance Minister Wale Edun highlights investment-friendly policies like tariff rationalization and fiscal discipline, which trimmed the deficit to 3.5% of GDP.
Information Minister Mohammed Idris praises the 2026 “Budget of Consolidation,” allocating ₦28.7 trillion to sustain prosperity amid oil price volatility.
Initial challenges, like 34% inflation peaks in 2023, tested public resilience, but diversification into manufacturing (up 12%) and tech hubs like Yaba’s Silicon Valley now provide buffers. Sub-national tax alignment amplifies federal efforts, with states adopting digital collection platforms.
Future Outlook
Tinubu envisions 2026 as a “robust phase of consolidation,” doubling down on successes for inclusive prosperity. Programs like NG-CARES (reaching 20 million vulnerable households) and the Labour Employment and Empowerment Programme (LEEP) prioritize women and youth. Nationwide water schemes and 10,000km rural roads will complete the agenda.
This roadmap positions Nigeria for 5-6% annual growth, lower inflation, and enduring stability—proving Tinubu’s reforms’ efficacy despite early hurdles.
