President Bola Tinubu’s administration has recorded significant progress across multiple sectors, according to a reform scorecard analysis published by Nairametrics. The report outlines 10 key takeaways from the government’s economic and policy reforms since Tinubu assumed office in May 2023.
Fuel Subsidy Removal and Fiscal Savings
The removal of the fuel subsidy, announced during Tinubu’s inaugural speech, has been a cornerstone reform. The government estimates savings of over N1 trillion in the first half of 2023 alone, which has been redirected to infrastructure and social welfare programs. However, the policy has also triggered a spike in transportation costs and inflation, with the national average price of petrol rising from about N185 per liter to over N600 per liter by mid-2023.
Foreign Exchange Unification
The Central Bank of Nigeria (CBN) under Tinubu unified the official and parallel market exchange rates, allowing the naira to float more freely. The naira depreciated from around N460 per US dollar to over N750 per dollar by August 2023, according to Nairametrics. This move aimed to attract foreign investment and reduce arbitrage, though it has also increased import costs and fueled inflation.
Tax and Fiscal Policy Reforms
The administration introduced the Finance Act 2023, which raised the VAT rate on certain luxury goods and expanded the tax base. The government also launched the Tax Administration and Revenue Enhancement Initiative, targeting a 20% increase in non-oil revenue by 2024. According to the report, the Federal Inland Revenue Service (FIRS) collected N12.8 trillion in revenue in 2023, up from N10.1 trillion in 2022.
Security and Defense Improvements
Security forces have reported successes against banditry and terrorism, with the military neutralizing over 2,000 suspected terrorists and bandits in the first six months of 2023, according to defense briefings cited by Nairametrics. The government also launched the Nigeria Security and Civil Defence Corps (NSCDC) anti-vandalism unit to protect critical infrastructure.
Agricultural Sector Interventions
The government distributed over 10,000 metric tons of fertilizer to smallholder farmers and launched the National Agricultural Growth Scheme (NAGS) to boost food production. The report notes that rice production increased by 15% in the 2023 wet season compared to 2022, though food inflation remained high at 29% year-on-year as of July 2023.
Power Sector Reforms
The Electricity Act 2023 was signed into law, allowing states to generate, transmit, and distribute electricity independently. The government also privatized the Transmission Company of Nigeria (TCN) in phases, with the first tranche of 49% equity sold to private investors in July 2023. Power generation capacity improved to an average of 4,500 megawatts, up from 3,800 megawatts in 2022.
Social Welfare and Poverty Alleviation
The administration expanded the National Social Investment Program (NSIP) to include a cash transfer of N8,000 per month to 12 million vulnerable households for six months, starting in October 2023. The government also launched the Student Loan Scheme, providing interest-free loans to university students, with an initial allocation of N50 billion.
Education and Human Capital Development
The government increased the education budget by 15% in 2023, allocating N1.2 trillion to the sector. The Universal Basic Education Commission (UBEC) reported that 2.5 million out-of-school children were enrolled in basic education programs in 2023, according to Nairametrics. The administration also launched the National Skills Development Program to train 1 million youths in digital and vocational skills by 2025.
Health Sector Reforms
The government allocated N1.1 trillion to health in the 2023 budget, a 20% increase from 2022. The National Health Insurance Authority (NHIA) expanded coverage to include 5 million additional enrollees, targeting universal health coverage by 2030. The report also highlights the distribution of 10 million insecticide-treated nets to combat malaria.
Infrastructure and Economic Diversification
The government launched the Infrastructure Development Fund (IDF) with N500 billion to finance road, rail, and port projects. The Lagos-Ibadan railway recorded 1.2 million passengers in 2023, a 40% increase from 2022. The report notes that the non-oil sector contributed 92% of GDP in the second quarter of 2023, up from 90% in 2022, driven by services, agriculture, and telecommunications.
According to Nairametrics, these reforms reflect the administration’s focus on fiscal discipline, economic diversification, and social welfare, though challenges such as inflation, unemployment, and security remain. The scorecard provides a benchmark for measuring progress as the government continues its policy implementation.
