The Centre for the Promotion of Private Enterprise (CPPE) has said that while the economic reforms implemented by President Bola Tinubu’s administration over the past three years have succeeded in restoring macroeconomic stability and averting a deeper economic crisis, the benefits have yet to translate into significant improvements in the living conditions of ordinary Nigerians.
Muda Yusuf, Chief Executive Officer of CPPE, observed in an assessment of the administration’s three years in office, noting that a fair evaluation of the government must take into account the severe economic challenges it inherited in May 2023.
According to Yusuf, the administration assumed office amid acute foreign exchange illiquidity, multiple exchange rates, declining investor confidence, mounting fiscal pressures and an unsustainable fuel subsidy regime that had become a major drain on public finances.
He said the government’s decision to remove fuel subsidies and unify exchange rates constituted the cornerstone of its economic stabilisation agenda, describing both measures as reforms that previous administrations had repeatedly postponed.
He noted that the fuel subsidy removal ended a major source of fiscal leakages, corruption and economic distortions while laying the groundwork for a more transparent and sustainable petroleum sector. Similarly, exchange rate unification helped eliminate arbitrage opportunities, improve transparency and restore credibility to the foreign exchange market.
“The reform improved price discovery in the foreign exchange market, reduced rent-seeking and restored a measure of credibility to the exchange rate framework.
These reforms, however, came with substantial adjustment costs,” Yusuf said.
However, Yusuf acknowledged that the reforms came at a high cost, triggering inflationary pressures, rising transportation and energy costs, increased production expenses and a sharp decline in household purchasing power.
“The immediate consequence of the reforms was a significant inflationary shock. Energy prices surged, transportation and logistics costs escalated, production expenses increased sharply, and the depreciation of the naira amplified imported inflation pressures.
“The welfare impact was considerable. Real incomes declined, poverty conditions worsened, and the cost-of-living crisis emerged as one of the most difficult consequences of the reform process. While the reforms were inevitable, the social costs have been substantial and remain a major policy concern,” he said
Despite the hardships, the CPPE pointed to several indicators suggesting that the reforms have begun to yield positive outcomes. He noted that Nigeria’s external reserves have improved significantly, with gross reserves approaching the $50 billion mark, while the country has maintained a trade surplus and witnessed stronger investor confidence.
Yusuf also highlighted improvements in inflation management, noting that the economy recorded eleven consecutive months of disinflation from early 2025 to February 2026 before geopolitical tensions in the Middle East disrupted the trend and renewed inflationary pressures.
According to him, the Nigerian capital market has also witnessed remarkable growth, with the NGX All Share Index rising from about 55,700 points in 2023 to over 254,000 points in 2026, while market capitalisation expanded from roughly N30 trillion to more than N160 trillion.
He further cited the discontinuation of Ways and Means financing and the emergence of domestic refining capacity, particularly through the Dangote Refinery, as important developments that have strengthened monetary discipline, improved energy security and reduced dependence on imported petroleum products.
Nevertheless, Yusuf stressed that the country’s biggest challenge remains translating macroeconomic gains into tangible welfare improvements.
“The challenge before the administration is no longer merely one of economic stabilisation; it is the imperative of converting reform gains into jobs, higher incomes, lower poverty and a better quality of life for Nigerians,” he said.
The CPPE chief also identified insecurity as a major obstacle to economic recovery, warning that continued attacks on farming communities are undermining food production, rural livelihoods and efforts to tame inflation.
He noted that structural constraints such as inadequate power supply, high energy costs, logistics bottlenecks, policy inconsistency and elevated interest rates continue to weaken the competitiveness of productive sectors and limit job creation.
Yusuf further expressed concern over fiscal sustainability, pointing out that public debt rose to N159.3 trillion as of December 2025, driven largely by exchange rate adjustments and the securitisation of legacy Ways and Means liabilities.
While expressing optimism that ongoing tax reforms could improve government revenues and fiscal capacity, he urged authorities to strengthen governance, improve public sector efficiency and ensure greater accountability in the management of public resources.
According to him, the long-term success of economic reforms depends on public trust, which can only be sustained when citizens perceive that the burden of adjustment is shared fairly by both households and the political elite.
Looking ahead, Yusuf said the next phase of the administration’s reform programme should focus on inclusive growth, investment promotion, productivity enhancement, energy security, food security and poverty reduction.
“Macroeconomic stability may rescue an economy from the brink, but inclusive prosperity is what secures public confidence, strengthens social cohesion and sustains the reform journey,” he stated.