Tinubu’s reforms trigger hardship, critics warn of collapsing livelihoods

President Bola Ahmed Tinubu’s economic reforms began with the abrupt removal of the fuel subsidy in his inauguration speech and the unification of the foreign exchange market, followed by tax and fiscal policy changes, banking sector recapitalisation and monetary tightening. Over three years into his administration, critics say these moves have driven up the cost of living, pushed feeding costs for an average family from ₦400,000 to about ₦700,000 a month, squeezed SMEs, and lowered Nigeria’s GDP per capita below its 2023 level. Economists such as Dr Muda Yusuf of the Centre for the Promotion of Public Enterprise and Dr Olu Olajemgbesi of the University of Abuja argue the reforms were inflationary, lacked sufficient compensatory mechanisms and have aggravated poverty, while former NERC chairman Dr Sam Amadi warns the policies undermine human capital development and sustainable growth. A coalition of civil society organisations including ActionAid Nigeria, BudgIT Foundation and Amnesty International Nigeria warned that Nigeria is on the brink of collapse, stating that higher government revenue has not translated into better living conditions. The government counters that it inherited major distortions—an unsustainable fuel subsidy, an opaque FX market, a weak oil sector and a narrow tax base—contributing to a trade deficit and ways‑and‑means liabilities of about ₦23 trillion, and claims the reforms are improving fiscal condition. The core debate remains whether the long‑term gains will outweigh the immediate hardship. What compensatory measures or social safety nets would you prioritise to ease the burden on households and businesses while the reforms continue?

SOURCE: https://nairametrics.com/2026/08/14/why-nigerians-despise-tinubus-economy/