Nigeria's Economic Reforms Show Gains Amid High Living Costs

The Bola Tinubu administration has presented a Reform Scorecard indicating significant economic improvements over three years, including stronger foreign reserves, slower inflation, and increased federal revenues. Finance Minister Taiwo Oyedele reported that reforms generated N20.4 trillion in incremental federal resources from June 2023 to December 2025, with N15.8 trillion in savings from subsidy reforms.

The premium between official and parallel foreign exchange markets has decreased from over 60% to below 5%. Gross foreign reserves rose from approximately $35 billion to $52.5 billion, and net reserves increased from about $3 billion to $34.8 billion.

Real GDP growth improved from 2.31% to 3.89%. Despite these achievements, many Nigerians face ongoing financial difficulties, as the cost of living has surged, particularly after petrol prices increased from N185 per litre to between N1,100 and N1,400 following subsidy removal.

The Monetary Policy Rate also rose from 18.5% to 26.5%, raising borrowing costs. Although headline inflation has decreased to 15.91%, the overall economic recovery has not translated into improved household finances.