{"id":35997,"date":"2026-08-10T08:36:16","date_gmt":"2026-08-10T07:36:16","guid":{"rendered":"https:\/\/www.funminews.com\/?p=35997"},"modified":"2026-08-10T08:36:18","modified_gmt":"2026-08-10T07:36:18","slug":"nigeria-economy-shows-stronger-growth-as-reforms-bring-short-term-pain","status":"publish","type":"post","link":"https:\/\/www.funminews.com\/index.php\/2026\/08\/10\/nigeria-economy-shows-stronger-growth-as-reforms-bring-short-term-pain\/","title":{"rendered":"Nigeria Economy Shows Stronger Growth as Reforms Bring Short Term Pain"},"content":{"rendered":"\n
\"Image\"<\/figure>\n\n\n\n

ABUJA, Nigeria<\/strong> \u2014 Nigeria\u2019s economy is showing signs of stronger and more stable growth following a series of major government reforms, officials and international partners say, although the policies continue to put pressure on households and businesses through higher living costs and other short-term challenges.<\/p>\n\n\n\n

The reforms introduced by President Bola Tinubu\u2019s administration include the removal of petrol subsidies, foreign-exchange changes and a major overhaul of the tax system.<\/p>\n\n\n\n

Outgoing British High Commissioner Richard Montgomery said the reforms were difficult but necessary to place Africa\u2019s most populous country on a stronger economic footing over the long term.<\/p>\n\n\n\n

Speaking during a farewell visit to the Nigeria Revenue Service in Abuja, Montgomery acknowledged that devaluation and inflation had created hardship for ordinary Nigerians.<\/p>\n\n\n\n

\u201cI know that a lot of the economic reforms are tough, and they can cause short-term pain for ordinary people,\u201d Montgomery said. He nevertheless described the reforms as fundamental to restoring Nigeria\u2019s economic vitality.<\/p>\n\n\n\n

\"Image\"<\/figure>\n\n\n\n

Recent data shows that Nigeria\u2019s real gross domestic product grew by 3.89% in the first quarter of 2026, up from 3.13% in the same period of 2025, although below the 4.07% recorded in the final quarter of last year.<\/p>\n\n\n\n

The services sector remained the biggest contributor to economic activity, accounting for 57.73% of real GDP. Agriculture also performed more strongly, while the industrial sector recorded moderate growth.<\/p>\n\n\n\n

The non-oil economy accounted for more than 96% of real GDP during the quarter, highlighting the country\u2019s effort to reduce its dependence on crude oil.<\/p>\n\n\n\n

Revenue collection has also improved. The Nigeria Revenue Service collected 21.6 trillion naira in tax revenue between January and June 2026, about 49% higher than the 14.27 trillion naira recorded during the same period in 2025.<\/p>\n\n\n\n

The increase is important for Nigeria, which has historically struggled to generate enough domestic revenue to finance public services and infrastructure. A narrow tax base has left successive governments heavily dependent on oil earnings and borrowing.<\/p>\n\n\n\n

\"Image\"<\/figure>\n\n\n\n

The government says stronger domestic revenue is essential to reducing dependence on volatile oil income and providing more reliable funding for roads, schools, health care and other public services.<\/p>\n\n\n\n

But the economic transition has come with significant costs.<\/p>\n\n\n\n

Tinubu\u2019s decision to remove the petrol subsidy in May 2023 pushed up fuel and transportation costs. The government also changed the foreign-exchange system, leading to a sharp adjustment in the value of the naira.<\/p>\n\n\n\n

Supporters of the reforms argue that delaying the changes would have left Nigeria facing even greater fiscal difficulties.<\/p>\n\n\n\n

There have also been signs of improving economic confidence. S&P Global Ratings upgraded Nigeria\u2019s long-term sovereign credit rating from B- to B in May, citing higher oil production and prices, increased domestic refining capacity and the effects of exchange-rate reforms. The agency also noted progress in broadening the tax base and improving Nigeria\u2019s debt-to-revenue outlook.<\/p>\n\n\n\n

\"Image\"<\/figure>\n\n\n\n

The World Bank has projected that Nigeria\u2019s economy will grow by about 4.2% in 2026, while warning that continued fiscal discipline and deeper structural reforms will be needed to sustain the recovery and make growth more inclusive.<\/p>\n\n\n\n

The central challenge now is whether improved revenue collection and greater economic stability can translate into better wages, more jobs, lower poverty and stronger public services.<\/p>\n\n\n\n

For now, Nigeria\u2019s economic picture remains mixed. Growth and fiscal indicators are improving, but many households continue to feel the cost of the adjustment. The long-term success of the reforms will ultimately depend on whether their benefits reach ordinary Nigerians.<\/p>\n\n\n\n

Nigeria\u2019s current reform programme began with the May 2023 removal of the petrol subsidy, followed by foreign-exchange reforms. The latest tax overhaul represents another major phase of the effort to strengthen domestic revenue and reduce dependence on oil.<\/p>\n","protected":false},"excerpt":{"rendered":"

ABUJA, Nigeria \u2014 Nigeria\u2019s economy is showing signs of stronger and more stable growth following a series of major government reforms, officials and international partners say, although the policies continue to put pressure on households and businesses through higher living costs and other short-term challenges. The reforms introduced by President Bola Tinubu\u2019s administration include the […]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[4,5,3,1138],"tags":[663,16252,12605,22223,22224,2859,22225,22226],"class_list":["post-35997","post","type-post","status-publish","format-standard","hentry","category-featured","category-international","category-naija-news","category-politics","tag-bola-tinubu","tag-nigeria-economic-reforms","tag-nigeria-economy","tag-nigeria-revenue-service","tag-nigerian-economy-2026","tag-nrs","tag-zacch-adedeji"],"jetpack_featured_media_url":"","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/35997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/comments?post=35997"}],"version-history":[{"count":1,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/35997\/revisions"}],"predecessor-version":[{"id":35998,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/35997\/revisions\/35998"}],"wp:attachment":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media?parent=35997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/categories?post=35997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/tags?post=35997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}