Assessing the Economic Impact of Federal Government’s Economic Reforms on Nigeria’s African Ranking
Working Paper
Over the past few years, Nigeria has implemented a set of bold economic reforms under President Bola Ahmed Tinubu’s administration. These include removing the petroleum subsidy, unifying the foreign exchange market, fiscal consolidation, and efforts to improve revenue generation and investment frameworks. The government argues these reforms have stabilized key macroeconomic indicators and set the economy on a growth trajectory. However, Nigeria’s position relative to other African economies has fluctuated, reflecting both structural issues and external forces. Despite a GDP rebasing exercise that expanded the size of the economy and modest GDP growth in early 2025, Nigeria has continued to lag behind regional peers such as South Africa, Egypt, and Algeria in nominal GDP rankings. This brief examines the nature of these economic reforms, tracks Nigeria’s relative economic position in Africa, discusses implications for citizens and the broader economy, and highlights areas for legislative intervention to strengthen economic performance and improve national well-being. To strengthen the impact of economic reforms and shift Nigeria’s economic performance relative to African peers, this brief hereby recommends the following: i. The National Assembly through its relevant Committees, Senate and House Committee on National Planning and Economic Development, through its oversight functions may wish to advise the Federal Government through the Federal Ministry of Budget and National Planning on the need to mandate rigorous monitoring of economic diversification strategies aimed at reducing reliance on oil and expanding sectors like manufacturing, agriculture, and ICT. To establish clear performance indicators tied to GDP growth and structural transformation goals. ii. The National Assembly through its relevant Committees, Senate and House Committee on Finance and Appropriations, may wish to strengthen oversight of revenue and expenditure projections, ensuring institutional accountability in tax reforms and public finance management. Ensure budgeting for social safety nets and poverty alleviation programs to cushion vulnerable populations from the immediate impacts of structural reforms.