10 key takeaways from Tinubu’s reform scorecard
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Wednesday presented President Bola Tinubu administration’s reform scorecard, stating how the government’s economic reforms have affected government finances, foreign exchange reserves, investment, inflation, household welfare and economic growth. The post 10 key takeaways from Tinubu’s reform scorecard appeared…
President Bola Tinubu's administration has released a reform scorecard detailing the impact of their economic reforms. The reforms have led to several key outcomes:
1. The government generated N20.4 trillion in incremental revenue but incurred N30.64 trillion in incremental expenses. This resulted in significant spending and borrowing to fund the reforms.
2. Nigeria's subsidy savings reached N15.8 trillion, with the Federal Government receiving N5.4 trillion based on the statutory FAAC allocation formula. Additional incremental revenue came from remittances and other sources, totaling N3.1 trillion.
3. Wage adjustments accounted for N9.39 trillion of the incremental expenses, nearly twice the subsidy savings received by the government. Other major expenses included N6.47 trillion for infrastructure development and N3.14 trillion for electricity subsidies.
4. The debt service to revenue ratio has improved, falling from 100% in 2022 to around 50% in 2026 without the reforms. This indicates better fiscal health. However, ways and means financing has been curtailed, reducing the potential increase from N30 trillion to N60 trillion.
5. External reserves have strengthened, increasing from $35 billion in May 2023 to $52.5 billion in July 2026. The parallel exchange rate premium narrowed significantly from over 60% to below 5%.
6. Nigeria's investment climate has improved, with capital importation rising from $1.13 billion in Q1 2023 to $10.37 billion in Q1 2026. Foreign direct investment also increased from $895 million in 2022 to $4.01 billion in 2025. The stock market capitalization has surged from N31 trillion in May 2023 to N150 trillion in June 2026.
7. While headline inflation has moderated from 22.41% in May 2023 to 15.91% in June 2026, food inflation has also decreased from 24.82% to 17.52% over the same period. However, household welfare improvements are ongoing, with high poverty rates persisting.
8. Petrol prices have risen significantly from N185 per litre in May 2023 to between N1,100 and N1,400 per litre. The minimum wage has increased from N30,000 to N70,000, reflecting the government's wage-related spending.
9. Real GDP growth has improved, rising from 2.31% in Q1 2023 to 3.89% in Q1 2026. Although still challenging, these gains suggest a positive trend in economic growth.
10. The reforms have set Nigeria on a path of economic improvement, though there is still considerable work to do to fully address household welfare concerns and ensure sustainable growth.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
