President Bola Tinubu has declared Nigeria’s recent monetarypolicy reforms successful, citing emerging positive outcomes and growing international acknowledgement of the changes.
In a statement circulated via video on Monday, the president spoke at a stakeholders’ meeting in Abuja, expressing confidence in the reform trajectory initiated by his administration. He directly attributed the perceived improvements to the monetary measures undertaken since he took office, stating they have contributed to stabilising key economic indicators and rebuilding trust in the nation’s financial system.
“The monetary policy that we have embarked on since the reforms has yielded positive results and been recognized around the world,” President Tinubu said, while specifically praising the Governor of the Central Bank of Nigeria (CBN) for implementing the measures.
The reforms in question centre on the simultaneous mid-2023 decisions to float the national currency, the naira, on the foreign exchange market and to remove the longstanding government subsidy on imported petroleum fuel. These moves, presented as necessary to address fiscal imbalances and foreign exchange market distortions, have initiated a period of significant economic adjustment.
While the presidency highlights stabilisation, the immediate impact of these twin policies has been a sharp increase in inflation and the cost of living. Local media reports, such as those from the Media Talk Africa, consistently document the ripple effects on household expenses and business operations, reflecting the challenging transition phase for many Nigerians.
Economists note that the currency unification and subsidy removal were designed to attract foreign investment, conserve dwindling foreign reserves, and eliminate costly fiscal drains. Early indicators cited by the government include a modest convergence between official and parallel exchange rates and increased foreign portfolio investment in government securities. International financial institutions, including the International Monetary Fund (IMF), have cautiously welcomed the direction of policy, linking future financial support to the government’s commitment to these reforms.
The administration maintains that the difficult adjustments are essential for long-term stability and growth. President Tinubu’s recent comments reinforce a narrative of short-term pain for long-term gain, positioning the reforms as a foundational shift. The significance of this period hinges on whether the promised macroeconomic stabilisation can materialise into tangible relief for the populace, balancing international credibility with domestic economic hardship. The coming months will be critical in assessing the sustainability of the reform programme and its ultimate impact on Nigeria’s economic trajectory.
