By Emmanuel Ademola
As Nigeria approaches 2027, a profound sense of urgency and purpose is evident throughout the nation. The country is on the verge of significant transformation, driven by the bold reforms and innovative economic strategies implemented during President Bola Ahmed Tinubu’s first term. This period is not just one of political change; it represents a crucial moment in Nigeria’s history, where today’s decisions will have lasting impacts on future generations. The environment is charged with the promise of progress and hope, illuminating the path toward a brighter tomorrow.
The Seeding Season: Reforms That Reshaped the Landscape
President Tinubu’s first term was marked by a series of transformative reforms designed to tackle long-standing inefficiencies within the Nigerian economy. One of the most significant actions taken by his administration was the strategic removal of the fuel subsidy. This bold move not only resulted in savings amounting to trillions of naira but also allowed the government to reallocate those funds into critical infrastructure projects and vital social programs aimed at improving the standard of living for many citizens.
In addition to the fuel subsidy removal, President Tinubu introduced an exchange rate unification policy. This measure aimed to enhance transparency in the currency market and restore investor confidence in Nigeria’s economy. While the initial implementation of this policy led to a period of volatility for the naira, it ultimately laid a more stable foundation for foreign investments, creating a more predictable business environment over time.
Tinubu’s administration focused on debt restructuring, successfully reducing the revenue allocated to debt servicing from 98% to 68%. This significant decrease alleviated fiscal pressures and created more financial space for education, healthcare, and infrastructure investment, supporting the country’s economic growth and development goals.
Sectoral Revitalisation: Telecommunications, fintech, and entertainment emerged as growth leaders.
The revitalisation of different sectors is actively underway, with telecommunications, fintech, and entertainment emerging as the key growth leaders. These industries are flourishing and reshaping our economy and altering how we connect, conduct transactions, and enjoy leisure activities in unprecedented ways.
The reforms enacted during this period faced numerous challenges, primarily characterised by significant economic turmoil. Inflation rates soared above 20%, creating instability in the purchasing power of the naira, which experienced a staggering decline in value, decreasing by over 300%. This devaluation not only impacted everyday consumers but also led to increased costs of essential goods and services. Additionally, the national debt escalated to more than $100 billion, placing immense strain on the government’s financial resources and policy decisions.
Despite the severe economic difficulties and the resulting hardships faced by the populace, these struggles played a critical role in laying the groundwork for a new economic order. The necessity for these reforms became evident as they aimed to address long-standing structural issues within the economy, paving the way for future growth and stability. Ultimately, while the journey was fraught with obstacles, it was viewed as a crucial phase in reorienting the nation’s economic landscape.
Economic Data: signs of emerging growth
Nigeria’s economy is showcasing remarkable resilience amid numerous challenges. In the first quarter of 2025, the nation’s real GDP soared to an impressive 3.13%, a notable leap from 2.27% during the same period last year. Projections for the entire year hint at an even more astonishing growth target of 3.7%, poised to be the highest growth rate in a decade!
Multiple sectors are driving this positive momentum. The services sector has emerged as a powerhouse, boasting a robust growth rate of 4.33% and now accounting for over 57% of the country’s GDP. The industrial sector is also making waves, enjoying a growth rate of 3.42%, primarily propelled by advancements in oil refining and construction. Even agriculture, which had seen better days, is showing signs of recovery with a slight growth of 0.07%.
In terms of oil production, the figures have climbed to 1.74 million barrels per day, although it still doesn’t meet the ambitious budgetary targets. Overall, these promising statistics reflect a nation that is not just bouncing back but recalibrating and repositioning itself for a brighter future. The ongoing reforms are pivotal steps toward securing Nigeria’s prosperity in the ever-evolving global landscape.
History affirms that bold reforms precede national transformation:
In the aftermath of World War II, several nations decisively charted remarkable journeys of economic recovery and growth. Germany, guided by the Marshall Plan and Ludwig Erhard’s social market economy, transformed itself from devastation into Europe’s unequivocal industrial leader. Meanwhile, Japan strategically implemented export policies and prioritised innovation, emerging as a dominant global technology powerhouse.
Deng Xiaoping’s bold reforms catapulted China into the ranks of the world’s largest economies through the establishment of Special Economic Zones (SEZs) and a robust commitment to global integration. Similarly, Ireland underwent a dramatic turnaround, moving from stagnation to prosperity by fully embracing European Union integration and implementing technology-driven reforms.
Singapore’s meteoric rise is a testament to its visionary leadership and substantial infrastructure investments, which have transformed the resource-poor island into an essential global financial hub. These nations share a powerful narrative of embracing reform, overcoming short-term challenges, and emerging stronger than before. Today, Nigeria is firmly on a parallel path, determined to achieve comparable growth and resilience.
The harvest ahead: What must be done
For Nigeria to unlock its full potential through reform, a concentrated focus on critical areas is imperative. Strengthening institutions stands as a non-negotiable priority, with a firm commitment to upholding the rule of law, implementing robust anti-corruption measures, and enhancing regulatory efficiency. By empowering citizens through increased access to quality education, digital skills training, and entrepreneurial resources, we can cultivate a thriving economic landscape.
Furthermore, revitalizing the agricultural sector is vital; securing farmlands and investing in modern farming techniques will effectively combat inflation and alleviate food insecurity. Attracting investment necessitates significant enhancements to our infrastructure, the simplification of the business environment, and the establishment of strong protections for investors. Lastly, we must prioritize the welfare of our most vulnerable populations by ensuring that social safety nets are transparent, effective, and inclusive, guaranteeing that those in need receive the vital support they deserve.
A call to national resolve
Nigeria stands at a crucial juncture as President Tinubu embarks on his journey toward a second term, guided by hope and determination. This moment is not simply about continuing previous policies; it represents an opportunity to realize a shared vision through dedicated effort and careful execution of strategic initiatives. With the foundation already established and the potential for transformative change in sight, it is essential for the nation to come together and benefit from the hard work invested in this endeavour.
We must decisively rise above the pervasive cynicism that clouds our outlook and wholeheartedly embrace the vast possibilities that lie ahead. Our objective is clear: to construct a Nigeria where meaningful reforms deliver tangible benefits—well-paved roads, abundant job opportunities, top-notch educational institutions, and the restoration of dignity for every citizen. We possess the power to transform our beloved nation into one that not only overcomes the challenges we face but boldly thrives in an inclusive and sustainable manner.
It’s time for us to take decisive action, as the results of our hard work are within reach. We must unite to seize this opportunity and fully embrace the benefits of our commitment to a brighter future for Nigeria. Together, we have the power to forge a lasting legacy of progress and prosperity that will benefit generations to come.
•Professor Ademola is a public affairs analyst
