Fuel subsidy removal, FX unification are Tinubu’s most significant reforms, says CPPE

The Centre for the Promotion of Private Enterprise (CPPE) has identified the removal of fuel subsidy and the unification of foreign exchange rates as the two most significant reforms underpinning Nigeria’s economic recovery under President Bola Tinubu’s administration.

In a statement titled “Three Years of the Tinubu Administration: From Stabilisation to Shared Prosperity,” CPPE director and chief executive officer, Muda Yusuf, said the reforms helped pull the economy away from a period of severe macroeconomic instability and laid the foundation for sustainable growth.

According to Yusuf, the administration inherited an economy burdened by deep fiscal imbalances, foreign exchange distortions, and mounting macroeconomic vulnerabilities, necessitating bold policy actions to restore stability. He noted that the removal of fuel subsidies and the harmonisation of exchange rates formed the cornerstone of the government’s economic stabilisation agenda, despite the short-term adjustment pains associated with the measures.

“Although the reforms came with initial challenges, there is growing evidence that they have delivered positive outcomes in terms of economic stabilisation,” Yusuf said.

He pointed to improvements in Nigeria’s external reserves, which he said are approaching the $50 billion mark, sustained trade surpluses, stronger investor confidence, and reduced volatility in the foreign exchange market since 2025 as indicators of progress.

The CPPE boss also highlighted the expansion of domestic refining capacity, led by the Dangote Refinery, as another major development supporting economic recovery. According to him, increased local refining has reduced dependence on imported petroleum products, helped conserve foreign exchange, strengthened energy security and contributed to exchange-rate stability.

“An economy that produces more of what it consumes is naturally stronger and more resilient,” he said.

Despite the gains recorded, Yusuf stressed that the government must now focus on ensuring that macroeconomic stability translates into broad-based improvements in living standards. He noted that high inflation, weak consumer purchasing power, and fragile household confidence remain major concerns.

“The next phase of the reform programme should be directed at converting stabilisation gains into inclusive growth through job creation, higher incomes, poverty reduction and improved quality of life for Nigerians,” he stated.

Yusuf also identified insecurity as a major obstacle to economic recovery, particularly in the agricultural sector, where attacks on farming communities continue to disrupt food production and contribute to inflationary pressures. He said improving security in rural areas would be critical to boosting agricultural output and achieving food security.

The CPPE chief further expressed concern over the country’s rising debt profile, which stood at N159.3 trillion as of December 2025. He explained that the sharp depreciation of the naira significantly increased the local currency value of external debts, while the securitisation of N23 trillion in Ways and Means advances also contributed to the growth in public debt.

While acknowledging concerns about debt sustainability, Yusuf said ongoing tax reforms could strengthen government revenue and improve fiscal sustainability over the medium term.