Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has acknowledged that the administration's economic reforms have led to an increase in poverty among Nigerians. In an interview on Channels Television, Bwala stated that the reforms, which included the removal of petrol subsidy and foreign exchange reforms, have caused discomfort but also led to "marked progress" since their introduction. He emphasized that the reforms were necessary and that the country has made significant strides in the last three years.
Bwala's admission comes amid a renewed debate over the impact of the administration's economic reforms. The World Bank has recognized improvements in Nigeria's macroeconomic position, including stronger external balances, improved fiscal conditions, and continued economic growth. However, the bank has also warned that these gains have not yet translated into improved living standards for millions of Nigerians. The International Monetary Fund has similarly acknowledged improvements in macroeconomic stability but noted that poverty and food insecurity remain significant challenges.
The removal of petrol subsidy and the depreciation of the naira have led to higher transportation, food, energy, and living costs for many households. Economists have drawn a distinction between improved macroeconomic indicators and the immediate welfare of households. Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, has argued that the reforms helped restore macroeconomic stability and address longstanding distortions. However, he emphasized that the ultimate test would be whether the gains translate into higher incomes, jobs, lower poverty, and improved living standards.
The Federal Government has maintained that the measures were unavoidable due to the fiscal and structural weaknesses inherited in 2023. President Tinubu has repeatedly argued that continuing the petrol subsidy would have left the government with fewer resources for infrastructure, social services, and development. The administration has also pointed to increased Federation Account revenues following the removal of the subsidy. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, reported that the Federal Government and subnational governments received increased revenues from subsidy savings between June 2023 and December 2025.
Despite the government's assertions, poverty remains a significant challenge. The World Bank estimated in 2025 that Nigeria's poverty rate had risen substantially over the preceding years, although it noted that much of the increase occurred before the Tinubu administration came into office. Oyedele acknowledged that reducing poverty remained one of the administration's major unfinished tasks. The government has highlighted its social intervention programs, student loans, consumer credit initiatives, agricultural support, and CNG transportation scheme as measures designed to cushion the impact of the reforms.
Bwala emphasized that the increase in poverty cannot be considered separately from the economic restructuring undertaken by the administration. He acknowledged that many Nigerians are poor but insisted that the country has made progress since the reforms were introduced. The administration's economic reforms have been a subject of debate among economists, opposition politicians, and the Federal Government, with some arguing that the reforms have corrected structural problems while imposing substantial adjustment costs on households and businesses.
The government's efforts to address poverty and improve living standards are ongoing. The administration's social intervention programs aim to provide support to vulnerable households and individuals. However, the effectiveness of these programs in reducing poverty and improving living standards remains to be seen. As the government continues to implement its economic reforms, Nigerians will be watching closely to see whether the gains translate into improved welfare and living standards.
Key points
- The administration's economic reforms have led to an increase in poverty among Nigerians.
- The government has acknowledged improvements in macroeconomic stability but notes that poverty and food insecurity remain significant challenges.
- The administration is implementing social intervention programs to cushion the impact of the reforms and reduce poverty.
