Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the government's economic reform programme, asserting that the rise in poverty following the policy changes was an unavoidable part of correcting long-standing fiscal imbalances, not a sign of failure. He made these remarks in response to concerns about the human cost of the reforms, particularly the removal of fuel subsidies under President Bola Tinubu's administration.
Direct Rebuttal to World Bank's Assessment
In a video clip shared by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Oyedele directly challenged institutions like the World Bank that argue poverty levels rose despite the reforms. He stated: "The World Bank would say that poverty has gone up despite the reforms. And I said, yes, poverty has gone up because you cannot remove subsidy and people become richer."
Oyedele described the reform process as a necessary reset after years of "fiscal illusions," where the government masked the true state of the economy through subsidies and other unsustainable measures. He added: "The reform itself was a reset. We were living in fiscal illusions. So we needed to stop deceiving ourselves so the country can move forward."
Transitional Costs and Long-Term Goals
The minister acknowledged that the policy changes reduced real household incomes in the short term, pushing more Nigerians below the poverty line. However, he framed this as an expected transitional cost of putting the economy on a more sustainable footing, rather than a policy failure.
Despite the initial hardship, Oyedele pointed to recent data indicating a turnaround. He cited nearly 10% real per capita income growth in dollar terms in 2025, which he described as among the strongest performances globally. "That makes Nigeria one of the fastest countries in lifting people out of poverty. We intend to sustain that," he said.
Government's Commitment to Sustained Growth
Oyedele emphasized that the government's priority is to maintain the reform programme over the long term to support stronger economic growth and improve living standards for Nigerian households. This commitment comes as the National Bureau of Statistics (NBS) released GDP data showing Nigeria's economy grew at its quickest pace in a decade.
According to the NBS report, real GDP growth increased to 3.89% year-on-year in Q1 2026, up from 3.13% in Q1 2025. The growth was supported by the expansion of the service sector, agriculture, and most key non-oil sectors of the economy.
Broader Economic Context
The reforms, including fuel subsidy removal, have been controversial, sparking debates about their social impact. However, Oyedele's defense underscores the administration's view that short-term pain is necessary for long-term gain. As Nigeria continues to navigate these changes, the government remains focused on achieving sustainable growth and poverty reduction.
The minister's remarks come amid ongoing discussions about economic policies and their effects on Nigerians, with some critics pointing to IMF data estimating that 63% of Nigerians live in poverty. Nevertheless, Oyedele's stance reflects a firm belief in the transformative potential of the reforms.
