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Tinubu, Bola

Tinubu's Economic Reforms: A New Chapter for Nigeria's Economy

Strategic Insights

— 2 min read

The President Bola Tinubu administration has been making significant strides in the economic sector, with independent groups hailing its efforts as unprecedented since Nigeria's return to democracy in 1999. The Chairman of Independent Media and Policy Initiatives (IMPI), Omoniyi Akinsiju, lauded the government's foreign exchange reforms, stating that the unification of the foreign exchange windows has led to an increase in revenue for states and local governments and a reduction in public debt.

Key Takeaways:

  • The President Tinubu administration's revenue rose by 82.4 per cent from N6.8trn in 2023 to N12.4trn in 2024, driven by the unification of the foreign exchange rates, enhanced tax administration, and reforms in treasury remittances, according to data sourced from the World Bank.
  • This represents a N5.6trn increase in federally collected revenue and a significant rise in the government's revenue-to-GDP ratio from 8.0 per cent in 2023 to 13.5 per cent in 2024, a considerable fiscal milestone going by the nation's historical revenue generation constraints.
  • Nigeria has completed the repayment of the principal amount of its $3.4bn loan from the International Monetary Fund (IMF) with the final payment made on April 30, 2025.
  • At least 33 Nigerian states and the Federal Capital Territory (FCT) reduced their domestic debt by a total of N1.85 trillion out of a total debt of N5 trillion between June 2023 and December 2024.
  • This indicates a commitment to fiscal responsibility and a move towards greater financial stability.
  • The group's audit of global and domestic institutional ratings and quantification of Nigeria's ongoing economic reforms indicates that the country is being increasingly recognized as a rising economic force and admired across the globe for the resolve shown by its leader in implementing difficult but necessary reforms.
  • However, some quarters of the national political class and the media have continued to belie the profound management of the national economy by the federal administration of President Tinubu, focusing on the high cost of living and ignoring the profound manoeuvres to restructure the national economy away from the misalignments and distortions of the past.

Statistics:

  • Revenue increase: 82.4 per cent from N6.8trn in 2023 to N12.4trn in 2024.
  • Increase in federally collected revenue: N5.6trn.
  • Rise in government's revenue-to-GDP ratio: 8.0 per cent in 2023 to 13.5 per cent in 2024.
  • Repayment of IMF loan: $3.4bn.
  • Reduction in domestic debt: N1.85 trillion out of a total debt of N5 trillion.
  • Inflation rate: 33.2 per cent in 2024, up from 24.7 per cent in 2023.
  • Policy rate: 27.5 per cent.

Sources:

  • World Bank
  • International Monetary Fund (IMF)
  • Independent Media and Policy Initiatives (IMPI)

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