Nigeria’s economic reforms under President Bola Tinubu have helped strengthen the country’s fiscal position and reduce some of the risks that threatened the economy, according to Finance Minister Taiwo Oyedele.

Speaking in Abuja on August 19, Oyedele presented the government’s latest assessment of the reforms, highlighting savings from subsidy and foreign-exchange reforms, stronger government revenue and an improvement in the country’s foreign-exchange position.

But while the government points to stronger economic fundamentals, many Nigerian households continue to struggle with higher living costs.

That contrast has become one of the defining features of Nigeria’s economic adjustment.

What the Government Says the Reforms Have Achieved

According to Oyedele’s reform scorecard, Nigeria saved approximately ₦15.8 trillion in subsidy and foreign-exchange-related costs between June 2023 and December 2025.

The government also estimates that the reforms generated about ₦20.4 trillion in additional government resources during the period.

Foreign-exchange reserves have also strengthened, reaching about $52.5 billion, while the gap between official and parallel-market exchange rates has narrowed significantly.

The government says the foreign-exchange premium, which was previously above 60%, has fallen to below 5%.

These developments suggest that Nigeria's external and fiscal position is considerably more stable than it was at the beginning of the reform programme.

The Naira Has Taken a Major Hit

However, stabilisation has come with a significant adjustment in the value of the naira.

The currency has moved from roughly ₦460 to the dollar in May 2023 to around ₦1,358, representing a major depreciation.

Although the weaker naira has increased the cost of imported goods, the government argues that the current system is more transparent because the large gap between official and parallel exchange rates has been reduced.

The previous multiple-rate system also created opportunities for arbitrage and made it difficult for businesses to accurately plan around foreign-exchange costs.

Fuel Subsidy Removal Changed the Cost of Living

The removal of the petrol subsidy has also been central to the government's reform programme.

The policy eliminated one of the country's largest recurring fiscal burdens, but consumers have had to absorb much higher fuel prices.

Petrol prices have increased from around ₦185 per litre to more than ₦1,100, significantly affecting transportation, logistics and the cost of goods and services.

For households already dealing with inflation, the impact has been substantial.

Stronger Government Finances vs Household Reality

This is where Nigeria's reform story becomes complicated.

An economy can become more financially stable without households immediately becoming wealthier.

The government's figures point to improvements in revenue, reserves and debt sustainability. At the same time, Nigerians continue to deal with expensive food, transportation, electricity and housing.

The Monetary Policy Rate, for example, increased from 18.5% to 26.5%, making borrowing more expensive for businesses and individuals.

The World Bank has also estimated that more than half of Nigerians were living in poverty in 2025, compared with about 42% in 2022, although poverty figures can vary depending on the methodology and period used.

The Next Challenge Is Growth

The reforms appear to have addressed one major problem: reducing the possibility of a deeper fiscal and external crisis.

The bigger question now is what happens next.

Stabilising the economy is only the first stage. Nigeria will need to convert that stability into higher productivity, stronger businesses, more jobs and better household incomes.

This is particularly important for the technology sector.

What It Means for Nigeria's Tech Industry

For technology companies, some of the reforms could create a more predictable operating environment.

A smaller gap between official and parallel foreign-exchange rates can make it easier for companies with international transactions to plan their finances.

Improved foreign-exchange reserves and reduced macroeconomic uncertainty can also make Nigeria more attractive to investors.

But there is another side to the equation.

Many technology companies depend on Nigerian consumers. When inflation, transport costs and energy expenses rise while disposable incomes fall, customers have less money available for digital products and services.

That means Nigeria could have a healthier macroeconomic environment while businesses still struggle with weak consumer demand.

The Real Test of the Reforms

Nigeria's economic adjustment has therefore reached an important turning point.

The government can point to stronger reserves, reduced foreign-exchange distortions and improved public finances as evidence that the reforms have reduced systemic risks.

But Nigerians will ultimately judge the programme by whether those improvements translate into better living standards.

The next phase will require more than stabilisation. It will require productive investment, job creation, stronger purchasing power and sustained economic growth.

Nigeria may have moved further away from the edge of a financial crisis. The challenge now is making sure the recovery reaches ordinary households.