President Bola Ahmed Tinubu’s economic reform programme is laying the foundation for a more resilient, competitive and investment-driven economy. While reforms of this scale inevitably require adjustment, emerging indicators suggest that Nigeria is steadily rebuilding macroeconomic stability and restoring confidence among investors and development partners.
One of the clearest signs of this progress is the country’s external reserves, which have risen above $50 billion—their highest level in 13 years. Stronger reserves enhance Nigeria’s ability to withstand external economic shocks, support exchange rate stability and reassure investors of the country’s financial strength.
The restoration of international confidence is also reflected in Nigeria’s removal from the Financial Action Task Force (FATF) Grey List in October 2025. This milestone acknowledges the country’s significant improvements in combating money laundering and terrorist financing. Beyond its symbolic value, the development makes Nigeria a more attractive destination for international investment by reducing regulatory concerns for global financial institutions and businesses.
The reforms are equally strengthening public finances at the subnational level. Federal allocations to states through the Federation Account Allocation Committee (FAAC) have more than doubled, giving state governments greater fiscal capacity to invest in infrastructure, healthcare, education and other critical public services. As states become financially stronger, they are better positioned to stimulate local economies and improve the quality of life for citizens.
More than ever, we are seeing state Governors do bigger projects that support their citizens—in transportation, social welfare, education and health.
Nigeria’s capital market has also experienced unprecedented growth. With market capitalisation exceeding N160 trillion, the Nigerian stock market has emerged as one of the best-performing in the world. A stronger capital market provides businesses with greater access to long-term financing, supports private sector expansion and creates new wealth-building opportunities for individuals and institutional investors alike.
Perhaps most importantly, foreign investors are responding positively to the changing economic landscape. Foreign Direct Investment (FDI) has risen from $378 million in 2023 to $923 million in 2025, underscoring growing confidence in Nigeria’s reform agenda. Increased investment brings not only capital, but also technology transfer, industrial expansion and employment opportunities that can drive sustainable economic growth.
These reforms are helping to reposition Nigeria as a more stable and competitive economy. While the full benefits will continue to unfold over time, stronger public finances, renewed investor confidence, increased capital inflows and a more resilient financial system provide the building blocks for sustained economic growth. In the long run, these gains have the potential to translate into more jobs, improved infrastructure, better public services and greater prosperity for millions of Nigerians.
– Odor Essien writes from Lagos
