Nigeria would have experienced inflation as high as 1,000 per cent if the Tinubu administration had not implemented sweeping economic reforms, according to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. The minister made the claim on Tuesday at the 56th Annual Accountants' Conference of the Institute of Chartered Accountants of Nigeria in Abuja, defending the government's policies despite the hardships facing households and businesses. Oyedele cited the removal of the petrol subsidy and changes to the foreign exchange market as key reforms that prevented a severe economic crisis, noting that Nigeria had been facing foreign exchange shortages, extensive monetary financing and the use of future crude oil production to fund subsidies before these changes.
Oyedele identified excessive money creation as a major contributor to current inflationary pressures, stating that the printing of approximately 30 trillion naira had significantly fuelled inflation. He argued that the inflationary effects of this monetary expansion had taken time to materialise but were now visible in higher prices for everyday goods. The minister acknowledged the rising cost of living but contended that the solution lay in raising household incomes rather than artificially suppressing prices through subsidies. He disclosed that the Federal Government had spent twice the amount saved from petrol subsidy removal on salary adjustments and wage awards, though he did not provide specific expenditure figures.
The government has introduced several interventions to mitigate the impact of the reforms, Oyedele said, including student loans, support for vulnerable households and subsidised credit for small businesses. On transparency concerns regarding cash transfers, he stated that the government had improved beneficiary identification through the National Identification Number system and that the World Bank had acknowledged progress in reaching vulnerable households. Oyedele also announced that the Federal Government had recently completed the audit of its 2022 financial statements, with plans to bring all outstanding accounts up to date by the first quarter of 2027, and subsequent audited accounts will be published within six months of each financial year's end.
Lagos State Governor Babajide Sanwo-Olu backed the federal reforms at the conference, citing economic data to support the government's position. He noted that Nigeria's economy grew by 4.43 per cent in the second quarter of 2026, while inflation declined to 14.63 per cent in September. Gross external reserves reached 54.93 billion dollars at the end of September, according to the governor, while the non-oil economy expanded by 4.31 per cent. Sanwo-Olu reported that Federation Account distributions increased from 10 trillion naira in 2023 to 21.9 trillion naira in 2025, with more than 20 trillion naira distributed in the first nine months of 2026. Revenue collections reached 21.6 trillion naira in the first half of 2026, representing a 49 per cent increase over the same period in 2025.
The President of the Institute of Chartered Accountants of Nigeria, Queensley Seghosime, cautioned that economic recovery must translate into improved living standards rather than statistics alone. She noted that the economy grew by approximately 4.2 per cent in the first half of 2026 but emphasised the need for productive employment, stronger institutions and improved public services. The conference, which drew about 12,000 delegates physically and virtually, brought together policymakers, accountants and business leaders to examine economic reforms, financial transparency and national development.