As President Bola Ahmed Tinubu reached the two-year mark of his tenure on Thursday, he reaffirmed his commitment to the economic reforms that have defined his administration—policies that, while praised by international lenders, have led to the most severe cost-of-living crisis Nigeria has faced in decades.
Tinubu assumed office in May 2023 and immediately launched a bold reform agenda aimed at addressing long-standing structural challenges in Africa’s most populous nation. His administration moved quickly to end costly fuel subsidies and liberalize the naira, steps the government and international financial institutions deemed essential to stabilize Nigeria’s fragile public finances.
However, these policies brought swift and painful consequences. The naira has lost significant value, and fuel prices have risen more than five times, despite Nigeria being the continent’s largest oil producer. These shifts have sharply increased the cost of goods and services, straining household budgets across the country.
“We’re Turning the Corner”
In a statement commemorating his two-year anniversary, Tinubu defended the direction of his economic agenda, asserting that the reforms are beginning to pay off. “Today, I proudly affirm that our economic reforms are working,” he said. “Despite the bump in the cost of living, we have made undeniable progress. We have stabilized our economy and are now better positioned for growth and prepared to withstand global shocks.”
Although inflation reached 34 percent in 2023—its highest level in years—Tinubu claimed the trend is beginning to shift. The World Bank, however, remains cautious, describing inflation levels earlier this month as “high and sticky,” reflecting persistent pressure on food and energy prices.
Growing Economic Pressure on Citizens
The burden of reform has fallen hardest on ordinary Nigerians. With wages stagnant and prices soaring, millions have seen their purchasing power evaporate. Daily life has become increasingly difficult, and public frustration continues to mount.
Analysts note that while the reforms were aimed at long-term stability, their implementation lacked sufficient cushioning measures to protect the most vulnerable segments of society. The resulting hardship has been widespread, with the World Bank estimating that by 2024, nearly half of Nigeria’s population—approximately 110 million people—were living below the poverty line.
Still, Tinubu has remained resolute, positioning his administration as one that is laying the foundation for a more resilient and self-sustaining economy. As Nigeria navigates this transitional period, the government faces mounting pressure to show not only macroeconomic improvements but also tangible relief for its citizens.