Nigeria Not in Crisis but Undergoing ‘Hard Reset,’ Budget Office Chief Insists

Nigeria’s economic turbulence is not a collapse but a difficult and necessary recalibration aimed at correcting years of structural imbalance, Director-General of the Budget Office of the Federation, Tanimu Yakubu, has asserted.

In a policy-framing statement issued Wednesday in Abuja, Yakubu argued that the current wave of hardship reflects deliberate reform choices designed to stabilize the economy, enforce fiscal discipline, and rebuild investor confidence not systemic failure.

He pointed to a series of ongoing reforms, including exchange rate unification, strengthening external reserves, and Nigeria’s re-entry into international capital markets, as evidence of gradual but tangible progress despite persistent inflationary pressures.

Describing the moment as a long-overdue adjustment, Yakubu said previous economic policies particularly fuel subsidies, multiple exchange rate regimes, and expansive government spending created an artificial sense of stability while masking deep inefficiencies.

“Countries in true economic collapse do not unify exchange rates, rebuild external reserves, regain access to international capital markets, or improve fiscal performance,” he said. “Nigeria, despite significant pressures, is making measurable progress across these indicators.”

According to the Budget Office chief, the dismantling of these distortions has exposed the real cost structure of the economy, contributing to rising prices but also enhancing transparency and accountability in public finance management.

He disclosed that distributable revenue to the Federation Account has surged by more than 40 percent following the removal of fuel subsidies, driven by improved remittance practices and reduced leakages.

Yakubu further noted that Nigeria’s public debt remains below 30 percent of GDP within what he described as manageable thresholds while external reserves have climbed above $40 billion, strengthening the country’s fiscal buffer.

At the subnational level, he added, improved revenues are enabling state governments to meet salary obligations more consistently, with some introducing inflation-linked wage adjustments an early signal of expanding fiscal space.

While acknowledging the strain on households, Yakubu maintained that the reforms are laying the foundation for a more transparent, resilient, and market-aligned economy, positioning Nigeria for sustainable long-term growth once the adjustment phase stabilizes.

ELIJAH ADEYEMI