The World Bank has confirmed that Nigeria’s economy is showing clear signs of improvement following President Bola Tinubu’s bold reform agenda, though the global institution cautioned that full recovery will take time. In its latest assessment, the Bank pointed to stabilizing exchange rates, growing foreign reserves, and slowing inflation as evidence that tough decisions like removing fuel subsidies and unifying exchange rates are starting to work. However, the report notes that ordinary Nigerians are yet to feel substantial relief, with food prices remaining high and unemployment still a major challenge.
The positive trends come after 18 months of economic pain following the government’s decision to scrap the costly fuel subsidy program and float the naira – moves that initially caused sharp price increases but are now beginning to stabilize the economy. Key indicators show the naira has gained 15% against the dollar since March, while foreign reserves have grown to $34 billion, their highest level in nearly a year. Inflation, though still high at 28%, has shown its first consistent monthly declines since the reforms began.
Key Improvements Noted
▪️ Exchange rate stabilized after 40% drop in naira volatility
▪️ Foreign reserves up to 34.1billion(10−month high)▪®Inflation growth slowing to 1.2 billion in foreign investment recorded last quarter
Major Reforms Driving Change
✔ Elimination of $2.1 billion monthly fuel subsidy
✔ Unified foreign exchange windows
✔ New tax policies to boost government revenue
✔ Power sector reforms including cost-reflective tariffs
Ongoing Challenges
► Food inflation remains painfully high at 35%
► Unemployment barely improved at 8.2%
► Manufacturing growth still weak at 1.1%
What Comes Next?
- World Bank considering $2.5 billion support package
- Government plans expanded social welfare programs
- Central Bank rate decision due July 22
