What specific economic reforms did President Tinubu implement, and what were their reported fiscal impacts according to Finance Minister Oyedele?

President Tinubu implemented reforms including scrapping the costly fuel subsidy and devaluing the currency, which Finance Minister Taiwo Oyedele stated helped stabilise public finances, lift foreign reserves, and attract investment. These reforms delivered 15.8 trillion naira ($11.71 billion) in savings from June 2023 to December 2025, boosted total federal resources by 20.4 trillion naira through higher revenues and borrowing, and enabled 30.64 trillion naira in extra spending—including 9.39 trillion naira for wage increases, 9.37 trillion naira for external debt servicing, and 6.5 trillion naira for infrastructure—while ending salary-payment difficulties in 27 states.

How did the reforms affect Nigeria’s foreign exchange market and government borrowing practices?

The reforms narrowed the gap between the official and parallel market exchange rates to under 5% from over 60%, and helped check the growth of the government’s Ways and Means debt—money lent directly by the Central Bank of Nigeria to cover temporary budget shortfalls—which stands at roughly 30 trillion naira.

Nigeria Finance Minister Says Reforms Helped Avert Economic Collapse

Aug 19, 2026

Nigeria's Finance Minister stated that President Tinubu's economic reforms, including fuel subsidy removal and currency devaluation, stabilized public finances and attracted investment despite short-term cost-of-living challenges.

reuters

2026-08-19

Nigeria Finance Minister Says Reforms Helped Avert Economic Collapse

Nigeria Finance Minister Says Reforms Helped Avert Economic Collapse

FAQ