Nigeria's economic reform programme is designed to correct structural weaknesses and build a sustainable economy, though the changes are creating short-term difficulties, according to statements from the Central Bank of Nigeria and the federal government. The CBN said the objective is to establish the features of a healthy economy: a robust financial system, low inflation, stable prices, high employment, wages that keep pace with inflation, moderate interest rates, a stable exchange rate, strong consumer confidence, balanced trade and GDP growth. To cushion the impact of these reforms, President Tinubu has introduced social safety nets.
The CBN has implemented a bank recapitalization policy to strengthen the financial system, which the apex bank said forms part of efforts to support President Tinubu's vision of a one trillion dollar economy. Following recapitalization, CBN Governor Olayemi Cardoso said the bank shifted focus to ensuring that stronger bank capital translated into credit for productive activities in agriculture, manufacturing, infrastructure, technology and small and medium enterprises. The CBN has also stabilized the exchange rate and reduced inflation from previous highs to 15.39%, the apex bank said, though it continues targeting further moderation.
The stabilization followed two major policy changes. The federal government removed the fuel subsidy regime, which had drained government resources and fuelled corruption, smuggling and fuel scarcity. Between June 2023 and December 2025, this removal generated approximately 15.8 trillion naira to the economy, according to government figures. The CBN unified the exchange rate, replacing a previous multiple-rate system that created distortions and volatility. The CBN said the unified rate aims to remove ambiguities, ensure transparency through market-based price discovery, curb rent-seeking behaviour and attract foreign direct investment.
Prior to these reforms, Nigeria's economy faced severe challenges. The World Bank noted that between 2020 and 2021, inflation pushed approximately eight million additional Nigerians below the poverty line, bringing the total number of poor people to around 90 million. The previous administration had reportedly left a colossal debt of 30 trillion naira, which was securitized rather than repaid, increasing debt servicing costs and inflationary pressure. The economy was described as broke and on the brink of collapse.
For savers, borrowers and business owners, the reforms mean inflation has been significantly reduced from previous levels though it remains elevated at 15.39%, and exchange rate volatility has decreased, allowing businesses greater certainty in planning. Going forward, the CBN and government said maintaining macroeconomic stability and further moderating inflation through monetary policy and supply-side improvements is essential. The authorities also said the economy requires greater competitiveness in manufacturing and policies to catalyze industrialization and economic diversification.