[REVISION HISTORY]

Nigeria fiscal reforms under Tinubu

Updated 2 times since CLSTR started tracking revisions of this situation.

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2026-08-03 18:50 UTC → 2026-08-04 17:27 UTC · added ~~removed~~

In late July 2026, President Bola Ahmed Tinubu’s 2023 reform package—removing the fuel subsidy, adjusting the exchange rate and introducing new taxes—boosted state fiscal capacity, increasing allocations from the Federation Account and enabling payroll expansions and infrastructure spending. By early August, former Vice President Atiku Abubakar accused the administration of fiscal recklessness, citing higher borrowing, the subsidy removal and an alleged oil windfall. Government supporters countered that the criticism relied on outdated 2024 data and pointed to a rebound in both dollar‑denominated and naira‑denominated GDP. On 2 August, the Presidency, through Special Adviser Bayo Onanuga, rejected Atiku’s claims, presenting updated figures that show Nigeria’s GDP rising from about $253 billion to $377 billion and from ₦314 trillion to ₦530 trillion, a debt‑to‑GDP ratio near 40 percent and a debt‑service‑to‑revenue ratio falling below 60 percent. The administration defended the subsidy removal as freeing statutory allocations for roads, rail, ports, power, housing and digital projects, and said tax reforms broaden the base while easing the burden on low‑income earners. It also dismissed the alleged N7.98 trillion oil windfall, noting higher oil prices were offset by lower production and costs. The presidency further highlighted the unification of the foreign‑exchange market and the expansion of the tax base as additional pillars of the reform agenda. It rejected Atiku’s allegation that a ₦1.08 trillion allocation to the Federal Cooperative College for 2,791 projects was a misuse of funds, arguing the spending supports vocational training and infrastructure. Officials said the combined measures are beginning to show measurable outcomes and lay the groundwork for sustainable growth. The debate continues, with Atiku urging caution and the government emphasizing ongoing structural adjustment and recovery.

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