By Muhammed Sherifdeen Omeiza
Nigeria’s economic reforms have produced some improvements, but the experience of ordinary Nigerians shows that economic reform is not only about fixing numbers. It is also about how long citizens are expected to wait before they feel the benefits.
Since 2023, the government has introduced major changes, including the removal of the petrol subsidy and reforms to the foreign exchange system. These decisions were intended to reduce government spending, improve the economy and create a more sustainable economic system.
There are signs that some of these objectives are beginning to show results. The IMF says Nigeria’s reforms over the past three years have improved macroeconomic stability, rebuilt external buffers and improved the functioning of the foreign exchange market. Nigeria’s international reserves also increased from about $40 billion at the end of 2024 to $46 billion in 2025.
But there is another side to the story.
For many Nigerians, the cost of living remains extremely high. Recent reporting has shown that households continue to struggle with the prices of food, transport and other basic needs, even as some economic indicators improve.
This is where the government faces its biggest challenge.
Economic reforms can take time to produce results, but people also have immediate needs. A family cannot wait several years before eating properly because the economy is expected to improve in the future.
This does not mean that reforms should be abandoned. In fact, reversing reforms simply because they are painful in the short term could create bigger problems later. The real issue is how government can protect vulnerable citizens while reforms are being implemented.
This is where social protection becomes important.
The IMF estimates that 27 million Nigerians faced food insecurity in the fall of 2025 and that poverty had reached 63 percent using the national poverty line. These figures show that economic reform needs to be accompanied by policies that protect people who are least able to absorb the shock.
Government should therefore focus on making social protection more effective and transparent. Cash transfers should reach the people they are designed for. Public transport should be improved. Local food production should receive stronger support. Small businesses should have better access to affordable credit.
At the same time, government needs to continue reforms that can reduce the cost of doing business. Electricity remains a major problem. Infrastructure is still inadequate. Businesses that spend too much on power, transportation and security will eventually pass those costs to consumers.
This is why reform should not stop at monetary policy and fuel pricing.
Nigeria needs a broader economic transformation.
The country must use its oil resources to build an economy that is less dependent on oil. Recent efforts to improve the oil and gas investment environment, including a new deep-water framework that could attract significant investment, show that the sector still has an important role to play. But oil revenue should support the development of other productive sectors rather than keeping the economy dependent on the same resource.
The government also needs to communicate better with citizens. People are more likely to support difficult reforms when they understand why they are necessary, what the government is doing to reduce the immediate burden and what results they should expect.
Nigeria does not need to choose between economic reform and the welfare of its citizens. It needs to do both.
The success of the reforms should therefore not be judged only by inflation figures, reserves or investor confidence. The real test will be whether these improvements eventually translate into cheaper production, more jobs, higher incomes and better living conditions.
Nigerians have already paid a high price for economic adjustment.
The government now has the responsibility to ensure that the benefits do not remain only in economic reports.
– Muhammed Sherifdeen Omeiza is a Nigerian researcher and writer whose work explores the intersection of humanitarian action, human rights, gender equality and global governance. With a keen interest in public policy, democracy, and political economy, he examines how local experiences and global decisions shape humanitarian outcomes in times of crisis. His writings draw from African and international contexts, reflecting a commitment to justice, accountability, and people-centered governance in global affairs.
Email: sherifdeenmuhammed001@gmail.com
