Nigeria's radical economic reforms have gained traction and investors are beginning to get involved again, according to the country's finance minister Doris Uzoka Anait.
Uzokaanite argued that the economy is ready for growth, including devaluing Naira and withdrawing widespread fuel subsidies, when some analysts who described the Standard Bank African Market Conference in Cape Town as “shock therapy” by President Volatinub.
“The president was bent into hell with reform. People were worried about how this would work, but everyone saw the president not retreat any time soon. Fiscal policy authorities followed his lead and we all were coordinated.
“We are now in the second year of the reform process, the economy has cooled, inflation has cooled, food prices have fallen. We are heading for growth. Now we understand why everyone has had to reform first.”
Investors looked at the early impact of the radical reforms enacted by Tinubu after his election, including the withdrawal of fuel subsidies and the liberalization of exchange rates.
Many felt that structural change needed reforms, but raised concerns about whether the economy would maintain a concurrent shock. This included a sharp depreciation of the currency, and a resultant spike in inflation, particularly due to the decline in oil production due to oil theft and pipeline vandalism, and a severe forex shortage.
“When we started, people were surprised by the speed of reforms in Nigeria, but it gave them time to normalize things, stabilize the economy and see the effects they have,” Uzoka Anite said.
“We had to reclaim a chunk of GDP that was 'leaking' into some private hands and make it available for infrastructure and social development. ”
Central banks are organized neatly
The IMF expects the economy to grow just 3.2% this year. Nigeria's annual inflation rate was 24.48% in January, down from previous month's figures after the first abolition of the country's price index for the first time in over a decade. Before the reconstruction, the Bureau of Statistics made inflation in December at 34.8% year-on-year.
Nevertheless, the Minister said the Central Bank of Nigeria (CBN) was able to reduce debt and create financial and financial stability. She attended the event alongside CBN's senior team who addressed investors as part of a series of country briefings.
In February this year, CBN Governor Olayemi Cardoso announced that the federal government had cleared a $7 billion backlog in foreign exchange debt.
As part of its efforts to restructure its debt portfolio, the government said it had reduced its total debt service payments from $540 million in January 2025 to $276 million in February 2025.
Getting back investors
Uzokaanite said the country is working to balance trade with a focus on exports, diversification and adding value to address prolonged currency volatility.
As a former Minister of Industry, Trade and Investment, she has worked with companies seeking to withdraw Nigerian markets due to economic challenges. Reforms included the establishment of the Presidential Fiscal Policy and the Tax Reform Committee. This was up to structural changes to the economy to make profitable and improve the ease of business.
“We really need to focus on it because the fastest way to create jobs is through industrialization.
She found that multinationals and local companies rely heavily on imported inputs.
“Their import trust strategy was no longer viable. They proposed taming the supply chain. For example, we spoke with breweries who wanted to leave Nigeria and discussed the possibility of using local sorghum to replace imports.
She said there was a renewed interest in investing in the country's economic belt. Uzoka Anite said companies are beginning to see the outcomes of the reform process.
“No one has the patience to wait for a long time to see the dividends of reforms, and we have now seen the benefits of the process in the short term.
