Nigeria's economic reforms are designed to correct market anomalies and build a sustainable economy, though implementation has caused short-term disruption, according to the federal government and the CBN.
The CBN has implemented two major policy changes as part of the reform programme. First, the removal of fuel subsidies by the Federal Government generated approximately N15.8 trillion to the economy between June 2023 and December 2025. Second, the CBN unified the exchange rate to remove distortions and volatility from the previous multiple exchange rate system.
The apex bank has also pursued bank recapitalization to strengthen the financial system and reduce inflation. According to the CBN, inflation has fallen from previous highs to 15.39 percent and the regulator is targeting further moderation. CBN Governor Olayemi Cardoso noted that after recapitalization, the focus shifted to ensuring stronger bank capital supports productive activities in agriculture, manufacturing, infrastructure, technology and small and medium enterprises.
A healthy economy requires a robust financial system, low inflation, stable prices, low unemployment, wages that keep pace with inflation, moderate interest rates, a stable exchange rate, high consumer confidence, and balanced trade, according to the description of reform objectives. President Tinubu has introduced social safety nets to cushion the impact of reforms on citizens.
The World Bank noted that between 2020 and 2021, inflation pushed approximately eight million more Nigerians below the poverty line, bringing the total number of poor people to around 90 million. The CBN aims to further moderate inflation through monetary policy while boosting economic supply.