Follow Us on Google Discover
Over the last three years, President Bola Ahmed Tinubu has embarked on an ambitious programme of economic and structural reforms aimed at repositioning Nigeria’s economy.
While many of the reforms have generated intense debate due to their short-term impact on businesses and households, they have collectively altered the operating environment for companies across virtually every sector of the economy.
From energy and taxation to foreign exchange management and infrastructure development, the administration’s policies have forced businesses to adapt to a new economic reality.
Analysts argue that these measures, though initially painful, are laying the foundation for a more market-driven economy with stronger private sector participation and improved fiscal sustainability.
Also Read
Below are ten of the most significant policies and legislative actions that have reshaped Nigeria’s business environment under the Tinubu administration.
Fuel subsidy removal
Perhaps the most consequential economic decision of the administration came on May 29, 2023, when President Tinubu announced the removal of the long-standing petrol subsidy.
For decades, the subsidy consumed trillions of naira annually and distorted market pricing. Its removal immediately triggered a sharp rise in fuel prices, leading to increased transportation costs, higher production expenses, and inflationary pressures across sectors.
Businesses that relied heavily on petrol-powered logistics, manufacturing, and transportation were compelled to redesign supply chains, adopt energy-efficient operations, and seek alternative energy sources. While the policy imposed significant short-term costs, the government maintains that it has freed resources for infrastructure and social investments.
Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, had said Nigeria would have spent about N52 trillion on fuel subsidies, representing 76% of the N68 trillion 2026 budget, if the policy had not been removed.
- He said “If that decision had not been taken, fuel subsidies alone would have consumed about 76% of the N68 trillion budget. At an estimated oil price of $120 per barrel, we were looking at subsidy costs of over N52 trillion. That would have left very little for capital projects, social services, and national development.”
In 2022 alone, the subsidy consumed a staggering N4.3 trillion. For the first half of 2023, another 3.36 trillion naira had already been earmarked for subsidy payments.
Analysts estimate that ending the fuel subsidy saved the government between N4 trillion and N6 trillion annually in fiscal costs.
Forex unification
Another major reform was the unification of Nigeria’s multiple foreign exchange windows.
The administration, working with the Central Bank of Nigeria, allowed market forces to play a larger role in determining the value of the naira.
The move eliminated the long-standing disparity between official and parallel market exchange rates that had created arbitrage opportunities and discouraged foreign investment.
Although businesses initially faced significant exchange-rate volatility and increased import costs, the narrowing of the gap between official and unofficial rates has improved transparency and restored investor confidence in the foreign exchange market.
Many exporters and foreign investors now operate under a more predictable framework than existed under the previous multi-rate system.
- Financial analyst Yusuf Ahmed had earlier told Nairametrics that “there is more transparency in the FX market today compared to what existed before 2023. Investors prefer clarity even when the exchange rate is painful.”
According to data from the Central Bank of Nigeria (CBN), the Naira has appreciated significantly, strengthening from N1,660/$ on December 2, 2024, to N1,359.75/$ as of June 11, 2026. The data also indicates a substantial increase in the country’s external reserves, which rose from $40.29 billion on December 2, 2024, to $50.43 billion as of June 10, 2026.
Electricity reforms empower states
The amendment and implementation of the Electricity Act marked a significant shift in Nigeria’s power sector.
The legislation granted states greater authority to legislate electricity generation, transmission, and distribution within their jurisdictions. This effectively ended the long-standing monopoly of the federal government over power regulation.
Several states have since initiated plans for independent power projects, mini-grids, and electricity market reforms aimed at improving energy access for businesses and residents.
According to the Nigerian Electricity Regulatory Commission, as of 2026, 15 states have fully enacted their own electricity laws and transitioned from federal control to managing their own intrastate electricity markets.
For manufacturers and small businesses that spend substantial resources on self-generated power, the reforms offer the prospect of more reliable and affordable electricity in the future.
Crude-for-Naira initiative
The administration introduced the crude-for-naira arrangement, enabling domestic refineries to purchase crude oil and sell refined petroleum products in naira rather than relying solely on dollar-denominated transactions.
The policy has particularly benefited the Dangote Petroleum Refinery and other emerging local refining operations.
By reducing pressure on foreign exchange demand in the downstream petroleum sector, the initiative aims to stabilize fuel supply, reduce import dependence, and support domestic industrial growth.
However, in March 2026, the Chief Executive Officer of the Dangote Refinery, David Bird, raised concerns over a significant shortfall in crude oil allocations under the Federal Government’s Crude-for-Naira programme.
He revealed that the refinery is currently receiving only five cargoes per month out of a pre-agreed 13 to 15.
Tax reforms simplify business compliance
One of the administration’s most extensive economic overhauls has been in taxation and revenue administration.
The signing of key tax reform legislation, including the Tax Act, Tax Administration Act, and Revenue Service Establishment Act, is expected to modernize Nigeria’s tax system.
In June 2025, President Bola Tinubu signed into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework.
The tax bills generated significant public debate and skepticism across various groups and regions in the country.
The reforms seek to expand the tax base, eliminate overlapping taxes, harmonize collection mechanisms, and reduce the burden of multiple taxation that has long frustrated businesses.
Corporate organizations have welcomed efforts to streamline compliance procedures while improving revenue generation for government at all levels.
Monetary policy overhaul
The Central Bank of Nigeria has undertaken significant monetary policy adjustments to tackle inflation and restore macroeconomic stability.
Aggressive interest-rate hikes were initially implemented to contain inflationary pressures stemming from the removal of fuel subsidies and foreign exchange reforms.
As inflationary trends began to moderate, monetary authorities shifted toward policies designed to encourage lending, stimulate investment, and support capital market growth.
The policy adjustments have had major implications for borrowing costs, investment decisions, and overall business planning.
Local government financial autonomy
A landmark ruling by the Supreme Court strengthened the financial autonomy of Nigeria’s 774 local government councils by directing that federal allocations be paid directly to them.
The development is expected to accelerate grassroots development projects, improve infrastructure delivery, and create new opportunities for local contractors, suppliers, and service providers.
Stakeholders, including the Association of Local Governments of Nigeria (ALGON), have argued that direct funding could stimulate economic activity in rural and semi-urban areas while reducing bottlenecks associated with state-level fund administration.
Import duty relief
To cushion the impact of inflation and rising production costs, the government introduced temporary waivers and suspensions on selected import duties and taxes.
The measures included exemptions affecting pharmaceutical products, critical manufacturing inputs, and certain categories of raw materials.
In April, the Federal Government announced it had waived import duties on electric vehicles, mass transit buses and manufacturing machinery as part of new fiscal measures aimed at easing economic pressure on Nigerians and curbing inflationary pressures.
The policy introduced broader tariff adjustments across key import segments.
Passenger vehicle duties were reduced from 70% to 40%, while tariffs on bulk rice were cut from 70% to 47.5% and broken rice from 70% to 30%.
Raw cane sugar was adjusted from 70% to between 55% and 57.5%, while crude palm oil duties were reduced from 35% to 28.75%.
In the industrial and construction sector, steel sheets and coils were lowered from 45% to 35%, while glazed ceramic tiles were reduced from 55% to 46.25%, in a move aimed at easing production and construction costs.
The intervention provided relief to manufacturers struggling with escalating costs arising from exchange-rate adjustments and supply-chain disruptions.
Infrastructure PPPs
The Tinubu administration has aggressively pursued public-private partnerships to finance major infrastructure projects.
Flagship initiatives include the Lagos-Calabar Coastal Highway and the proposed Sokoto-Badagry Superhighway, both designed to improve connectivity, facilitate trade, and unlock new economic opportunities.
The Lagos–Calabar Coastal Highway remains one of the administration’s flagship infrastructure projects aimed at improving trade, logistics and regional integration.
In December 2025, the Federal Government secured about $1.2 billion in financing from the United Arab Emirates to support construction of a key segment of the highway, while another $747 million financing package was secured in July.
The projects are expected to stimulate investment in logistics, tourism, real estate, agriculture, and industrial development along their routes.
Government officials believe that improved transportation infrastructure will significantly reduce the cost of moving goods across the country.
Agricultural interventions
In response to rising food prices and concerns over food security, the administration declared a state of emergency on food production and introduced several agricultural support measures.
These include zero-duty policies on imported agricultural machinery, increased fertilizer distribution programmes, and targeted interventions aimed at boosting domestic food production.
- In 2024, the Federal Government introduced a zero-duty levy on selected food imports to ease soaring food prices.
- While the policy helped drive food inflation down from 40.8% in June 2024 to 8.89% in January 2025, some stakeholders say it had caused losses for farmers.
Recently, the Federal Government of Nigeria unveiled a N1 billion reform of the country’s agricultural education system aimed at strengthening food security, creating jobs, and driving economic growth.
Nairametrics previously reported that the Federal Government approved a N250 billion facility for the Bank of Agriculture to provide smallholder farmers with access to credit at single-digit interest rates.
Previously, in September 2025, the Bank of Agriculture secured a $1 billion intervention facility in partnership with the African Export-Import Bank to strengthen Nigeria’s agricultural value chain.
The government hopes that these initiatives will strengthen agricultural value chains, improve productivity, reduce food inflation, and create employment opportunities in rural communities.
Bottomline
Taken together, these ten reforms represent one of the most comprehensive economic restructuring efforts undertaken by any Nigerian administration in recent decades.
While many businesses continue to grapple with the immediate effects of higher costs, exchange-rate adjustments, and inflationary pressures, supporters argue that the reforms are addressing long-standing structural weaknesses that have constrained economic growth.
The ultimate success of the policies, however, will depend on consistent implementation, improved governance, enhanced investor confidence, and the administration’s ability to ensure that economic gains translate into tangible improvements in the lives of ordinary Nigerians.
