President Bola Ahmed Tinubu has pledged that his administration will further reduce inflation in 2026, saying the Federal Government is determined to ensure that the benefits of ongoing economic reforms reach every Nigerian household.
Tinubu made the pledge in his New Year’s message to Nigerians on Thursday.
Nigeria’s headline inflation rate had moderated to 14.45% in November 2025, marking a significant slowdown from the 16.05% recorded in October 2025.
What Tinubu is saying
In his New Year message to the nation, the President said Nigeria ended 2025 with tangible economic gains despite global economic headwinds, noting that inflation had already declined below the government’s target.
“Inflation declined steadily and reached below 15 per cent, in line with our target. In 2026, we are determined to reduce inflation further and ensure that the benefits of reform reach every Nigerian household,” Tinubu said.
Reflecting on 2025, the President said his administration sustained momentum on major reforms, including a fiscal reset that helped stabilise the economy.
“During 2025, we sustained the momentum on our major reforms. We had a fiscal reset and also recorded steady economic progress,” he said.
According to Tinubu, the gains recorded reaffirm the administration’s belief that the reforms—though difficult—are moving Nigeria in the right direction, with more concrete outcomes expected for ordinary citizens.
“These achievements reaffirm our belief that the difficult but necessary reforms we embarked upon are moving us in the right direction,” he said.
Economic performance and outlook
The President said Nigeria closed 2025 on a strong note, recording robust quarterly GDP growth, with annualised growth expected to exceed four per cent.
“Despite the policies to fight inflation, Nigeria recorded a robust GDP growth each quarter. We maintained trade surpluses and achieved greater exchange rate stability,” he said.
Tinubu also highlighted the performance of the capital market, noting that the Nigerian Stock Exchange posted a 48.12 per cent gain in 2025, extending a bullish run that began in the second half of 2023.
Strong reserves and rising investment
The President attributed Nigeria’s improved external position to sound monetary policy management.
“Our foreign reserves stood at $45.4 billion as of December 29, 2025, providing a substantial buffer against external shocks for the naira,” he said, adding that the position is expected to strengthen further in the new year.
He also reported a sharp rise in foreign direct investment, with inflows increasing to $720 million in the third quarter of 2025, compared to $90 million in the preceding quarter.
According to him, renewed investor confidence has been affirmed by global credit rating agencies, including Moody’s, Fitch, and Standard & Poor’s.
Fiscal discipline and tax reform drive
Tinubu reiterated his administration’s commitment to fiscal discipline, referencing the 2026 Appropriation Bill recently presented to the National Assembly.
“Our administration has implemented critical reforms that are laying a solid foundation for long-term stability and prosperity,” he said.
The President said moderating inflation and interest rates would create fiscal space for increased investment in infrastructure and human capital development.
He also addressed the challenge of multiple taxation, commending states that have aligned with the national tax harmonisation agenda.
“I commend states that have adopted harmonised tax laws to reduce the excessive burden of taxes, levies, and fees on our people and on basic consumption,” Tinubu said.
According to him, 2026 marks a critical phase in implementing tax reforms aimed at building a fair, competitive, and robust fiscal foundation for the country.
Inclusive growth and social development
Looking ahead, Tinubu said 2026 would mark a more robust phase of economic growth with tangible improvements in citizens’ lives.
“We will accelerate the implementation of the Renewed Hope Ward Development Programme, aiming to bring at least 10 million Nigerians into productive economic activity,” he said.
The programme, he explained, targets the empowerment of at least 1,000 people in each of Nigeria’s 8,809 wards.
The President added that the government would continue investing in agriculture, trade, food processing, mining, and critical infrastructure, including roads, power, ports, railways, airports, healthcare, and education.
What you should know
The Central Bank of Nigeria (CBN) had projected that headline inflation will moderate to an average of 12.94% in 2026, driven by easing food prices and a decline in the cost of premium motor spirit (PMS).
According to the CBN, improved domestic supply conditions and stabilising energy prices are expected to reduce cost pressures on households and businesses, supporting overall price stability.
