President Bola Tinubu's economic reforms in Nigeria have had devastating social consequences, deepening poverty, hunger, and misery across the country. Despite macroeconomic improvements, the reforms have failed to improve the living standards of ordinary citizens. Tinubu's policies, including the removal of the fuel subsidy and the scrapping of the fixed exchange rate regime, were aimed at addressing corruption and fiscal burdens but have had severe unintended consequences.
The removal of the fuel subsidy has increased gross federation revenues, reportedly raking in about N15 trillion since 2023. The devaluation of the naira has made non-oil exports cheaper, resulting in a record $6bn export revenue in 2025. However, these macroeconomic improvements have not translated to improved living standards for ordinary Nigerians. The naira's massive devaluation has created imported inflation, and high interest rates have raised borrowing costs for businesses.
The World Bank reports that 63 percent of Nigerians now live below the poverty line, while nearly 30 million suffer from food insecurity. Despite the government's claims of macroeconomic stability, the fundamentals are weak. GDP growth at 4.2 percent is not sufficient to engender meaningful prosperity in Nigeria. The country's recovery is shallow and risky, according to SBM Intelligence.
President Tinubu's economic reforms lack a people-oriented focus and a human face. The combined effects of the removal of the fuel subsidy and the floating of the naira have massively reduced household welfare, resulting from higher transport costs, higher food prices, and low or non-existent disposable incomes. The government has not done enough to lift ordinary Nigerians out of poverty or protect the most vulnerable.
Tinubu's recent initiatives aim to tackle the cost-of-living crisis in Nigeria. On October 8, the Presidency announced a 30-day N66 petrol discount under which NNPC Retail would forgo its petrol retail profit margin to cushion consumers against rising fuel prices. However, this policy has limitations, and petrol prices remain high.
The IMF has observed a lack of transparency and accountability regarding the use of subsidy savings. The government's actions have raised concerns about the use of public funds for election campaign purposes, such as the distribution of brand-new Toyota Prado SUVs to APC youth leaders.
Critics argue that Tinubu's relief plans are too little, too late, and smack of cynical pre-election tactics. The government's efforts to alleviate the suffering of ordinary citizens are seen as insufficient, and the timing of the announcements has raised questions about their motivations.
Key points
- President Tinubu's economic reforms have deepened poverty and hunger in Nigeria.
- The government's relief plans have been criticized as too little, too late.
- The use of subsidy savings has raised concerns about transparency and accountability.
