Nigerians still struggling under effects of major economic reforms – New Report

By Emma Ujah, Abuja

Nigerians continue to feel the impact of three major economic reforms undertaken by President Bola Tinubu, a new study by Agora Policy has revealed.

The reforms—removal of the fuel subsidy, adjustment of electricity tariffs, and the floating of the Naira—were examined in a report presented at the Stakeholder Dialogue on “Sustaining and Deepening Economic Reforms in Nigeria” in Abuja.

Dr. Mohammed Shuaibu of the University of Abuja, who presented the report, highlighted the heavy toll these reforms have taken on ordinary Nigerians and businesses.

“The report found that while these reforms strengthened government finances, they have made life much harder for the average citizen,” Dr. Shuaibu said.

According to the study, petrol prices rose from an average of ₦161 to over ₦1,200 per litre, while the Naira lost significant value against the dollar. Electricity tariffs for some households increased from ₦68 to ₦225 per unit, causing the cost of a healthy meal to triple—from ₦515 in mid-2023 to an estimated ₦1,611 by July 2025.

The report documented widespread hardships, with families forced to walk long distances due to transport costs, reduce meal frequency, and limit electricity use. Vulnerable groups—including children, women, the elderly, and rural residents—were disproportionately affected, with many borrowing to afford basic necessities.

Small business owners and farmers also faced difficulties, citing rising fuel and electricity costs. Some shops raised prices, laid off staff, or shut down entirely. The report noted that government support, such as new minimum wages and conditional cash transfers, was delayed, leaving households exposed during critical periods.

To address these challenges, the study recommends a phased approach to reforms, timely social support, and targeted tax reliefs for the transport and agricultural sectors to lower the cost of food and mobility.

In her remarks, Dr. Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry, called for urgent reforms in the power sector, particularly privatization of the transmission sub-sector to improve service delivery.

Dr. Samer Matta, Senior Economist at the World Bank in Nigeria, urged the government to focus on reducing inflation and strengthening growth in real sectors such as agriculture and manufacturing to make economic gains more widely felt.

Dr. Muhammad Abdullahi, Deputy Governor of the Central Bank of Nigeria for Policy, emphasized the need for broad-based growth and job creation, noting that ongoing bank recapitalization aims to support larger businesses to drive faster economic growth.

The Special Adviser to the President on Finance and Economy, Ms. Sanyade Okoli, acknowledged that the government could have communicated more effectively about the reforms.

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