The global economic community and major financial institutions have begun showing renewed confidence in Nigeria’s economy, thanks to President Bola Ahmed Tinubu’s bold reform agenda. According to the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, the wide-reaching economic decisions implemented by the current administration are already delivering measurable results, drawing investor attention, and improving the country’s fiscal outlook.

Bagudu made this assertion in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Wednesday. He emphasized that the reforms—particularly the removal of fuel subsidies, foreign exchange market liberalization, and increased investment in strategic sectors—have positioned Nigeria as a more credible and transparent economic partner on the global stage.

Global Confidence Grows Amid Visible Economic Gains

Bagudu explained that investors from countries such as Brazil, Belarus, and Saudi Arabia have started exploring opportunities within Nigeria’s agricultural sector—a clear signal of growing foreign interest. He attributed this momentum to the government’s commitment to sound policy implementation and economic credibility.

“Investors want to see policy consistency. They want answers to crucial questions like: Can I recover my capital? Are the financial metrics reliable? Is the investment environment transparent?” Bagudu said. “When they observe quarterly GDP growth and real reforms, that builds confidence.”

He also noted a historic development in Nigeria’s oil sector, revealing that the country is now refining crude oil domestically for the first time in 25 years. “President Tinubu demonstrated immense courage by approving the sale of crude oil in naira to local refiners. This decision underscores his trust in the resilience and potential of the Nigerian economy,” Bagudu said.

Fuel Subsidy Removal and FX Unification Transform Investor Sentiment

The Minister identified the withdrawal of fuel subsidies and the unification of the foreign exchange (FX) market as two of the most transformative actions taken by the Tinubu administration. These policies, though initially challenging, have helped restore fiscal discipline and transparency while reducing distortions in the economy.

“We were losing nearly 5% of our GDP to fuel subsidies, which benefitted only a few. President Tinubu made the tough but necessary decision to stop it,” Bagudu remarked. “This has had a domino effect on revenue generation and efficient public spending.”

Bagudu further stressed that the FX unification policy has created a more equitable marketplace. By eliminating multiple exchange rates and allowing the market to determine the naira’s value, the administration has curtailed arbitrage opportunities and fostered investor trust.

“The FX reform removed favouritism and uncertainty. Today, we have a ‘willing buyer, willing seller’ model that reflects market realities. This has not only increased public revenues but also revived private sector enthusiasm,” he explained.

Budget Strategies Balancing Discipline and Growth

In discussing the fiscal roadmap, Bagudu highlighted that both the 2024 and 2025 budgets were carefully designed to prioritize responsible spending and strategic investments. These budgets focus on boosting health, education, infrastructure, security, and technology—areas the government views as critical to Nigeria’s development trajectory.

He noted that the 2024 budget significantly reduced the fiscal deficit while reinforcing the administration’s commitment to prudent financial management. “The markets responded positively to the budget because it sent a strong signal—we’re serious about change, and we’re acting on it,” Bagudu asserted.

He also pointed out that this growing investor confidence stems from consistent policymaking, data-driven planning, and the Tinubu administration’s insistence on institutional integrity.

“President Tinubu inherited a N22.7 trillion Ways and Means financing burden. Despite that, he has shown deep respect for the independence of the Central Bank. That level of discipline is earning Nigeria credibility across international financial circles,” he added.

Reform Pain Compared to Fitness Journey

While acknowledging the economic difficulties currently facing many Nigerians, Bagudu likened the reform process to a fitness journey—demanding in the short term but beneficial in the long run.

“Pain today will yield strength tomorrow,” the Minister said, urging citizens to endure the initial discomfort as the reforms continue to produce tangible benefits.

Surging Trade and Fiscal Revenues Reflect Reform Payoffs

In a related development, Nigeria’s total trade exports surged to $50.4 billion in 2024, driven in large part by the naira’s depreciation and the cessation of fuel subsidy payments. These changes significantly improved the country’s trade balance and helped generate record export earnings.

Data from the National Bureau of Statistics (NBS) further revealed that Nigeria’s total trade volume reached N138 trillion in 2024, the highest ever recorded in the country’s history. This milestone underscores the positive impact of the administration’s reforms on foreign trade and economic performance.

Additionally, the Tinubu government has dramatically increased the Federal Account Allocation Committee (FAAC) disbursements to federal, state, and local governments. The monthly allocations rose from N760 billion in 2023 to N3.2 trillion in 2024, largely fueled by revenues previously consumed by fuel subsidies.

Policy Continuity Crucial to Sustained Growth

The administration has also introduced a more structured and consistent approach to policy implementation. Bagudu explained that long-term success depends not only on introducing reforms but also on maintaining them despite political pressures.

He emphasized that the reforms were part of a long-term strategy to make Nigeria more competitive, attract sustainable investment, and create jobs. “Difficult decisions like ending subsidies or FX reform send a clear message to the world: Nigeria is serious about economic renewal,” Bagudu concluded.

Outlook: Reform-Driven Economy Positioned for Long-Term Growth

With sweeping changes underway and a clear commitment to economic transformation, the Tinubu administration’s strategy appears to be redefining Nigeria’s global economic standing. The rise in trade, renewed investor confidence, increased government revenue, and commitment to transparency all point toward a potentially brighter economic future.

Though challenges remain—particularly in cushioning the social impact of reforms—the government believes the pain will be temporary and the gains long-lasting. Investors and global financial institutions are beginning to echo that sentiment, showing signs of long-term engagement with Africa’s largest economy.