Tinubu Govt Moves to Enact Law to Prevent Incoming Government From Reversing His Economic Reforms

The Federal Government is considering a proposal to establish a legal framework that would protect President Bola Tinubu’s economic reforms from being reversed by future administrations, as part of efforts to ensure policy consistency and long-term economic stability.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Monday at the 32nd Nigerian Economic Summit in Abuja, where he said the government was seeking a national consensus on economic policies that could eventually be backed by law.

The summit, themed *“Growth that Works: Delivering Jobs, Productivity and Shared Prosperity,”* brought together government officials, business leaders, economists and other stakeholders to discuss Nigeria’s economic direction.

Oyedele said the proposed Nigeria Economic Policy Framework would establish guiding principles for decisions on taxation, tariffs, subsidies, investment and industrial development, with the aim of preventing successive governments from abandoning reforms for short-term political reasons.

“We now need to lock it in, in institutions, in law, as well as policy framework, so that it can be enduring,” the minister said during a panel discussion.

 FG Considers Legal Protection for Economic Reforms

Oyedele explained that the government wanted to build a durable economic policy framework that would survive changes in political leadership and provide greater certainty for businesses and investors.

He cited the removal of petrol subsidies as an example of a reform that could face reversal under a future administration, despite the economic consequences the current government says would arise from returning to the previous system.

“Any ideas of returning it, we should forget about it,” he said, adding that the government was asking stakeholders whether the proposed framework should be enacted into law and how relevant institutions could be strengthened.

Under the proposal, public officials and political appointees could be required to understand and adhere to the agreed economic principles when making policy decisions.

Oyedele also suggested that the framework could become part of the screening process for government appointments, with copies provided alongside appointment letters to guide officials in carrying out their responsibilities.

However, the minister clarified that the Nigeria Economic Policy Framework remained a consultation draft and had not yet received approval as official government policy.

Public consultation is expected to continue until November 27, 2026, after which the document is scheduled to be presented to the Federal Executive Council for approval and the National Economic Council for endorsement.

The proposed legal framework would therefore still need to pass through the relevant government processes before its final status and scope could be determined.

Oyedele Faults Nigeria’s Inconsistent Economic Policies

Presenting the framework, Oyedele criticised Nigeria’s history of policy reversals, arguing that frequent changes in government direction had undermined economic planning and discouraged private investment.

He described policy uncertainty as an additional burden on businesses, saying it could discourage investment without generating revenue for the government.

“Policy uncertainty is an invisible tax on enterprise. And unlike most taxes, it generates no revenue for government; it only destroys value and discourages investment,” he said.

The proposed framework recommends mandatory Policy Impact Assessments before major economic interventions are introduced.

Under the recommendation, regulators would be expected to provide evidence supporting proposed measures, identify their likely costs and beneficiaries, and specify how long the interventions should remain in place.

The document also proposes an annual National Economic Scorecard to be published on Independence Day. The scorecard would track indicators such as real wages, productive employment and poverty levels.

According to Oyedele, the framework would be built around stability, productivity, enterprise, capital, people, markets and institutions.

He argued that a nationally agreed economic direction could eventually change how political parties approach economic policy, with parties focusing more on how they would implement the agreed principles rather than developing competing economic manifestos.

FG Rules Out Return to Petrol Subsidy

The finance minister maintained that the removal of petrol subsidies was necessary to address economic distortions associated with artificially suppressing prices.

He argued that government policy should prioritise improving household incomes rather than keeping prices below levels that can be sustained by market conditions.

“Let’s not suppress prices. Let’s focus on raising income,” Oyedele said.

The Minister of Budget and Economic Planning, Abubakar Bagudu, also defended the administration’s reform agenda, saying Tinubu had directed government officials to sustain the policies despite concerns about their immediate effects on households.

“There will be no return to subsidy. There will be no return to those distortions,” Bagudu declared.

He said the Federal Government had reached agreements with state governments on improving coordination of fiscal and monetary policies, infrastructure development, security and domestic production.

Bagudu also disclosed that more than $6 billion had been mobilised from the World Bank and other development partners to support household resilience and create economic opportunities.

The government’s position comes amid continued debate over the effects of subsidy removal, foreign exchange reforms and other policy changes on the cost of living and business operations.

Oyedele Targets Lower Inflation and Interest Rates

Oyedele further disclosed that the Federal Government was targeting low single-digit inflation before the end of 2027, a development he said could help create the conditions for single-digit interest rates.

However, he did not provide a definite timeline for when borrowing costs could fall to that level.

The minister also pointed to what he described as benefits of the government’s reforms, including improved access to foreign exchange, student loans, pension payments, wage adjustments and subsidised credit for small businesses.

He said salary increases and wage adjustments accounted for the largest expenditure item from Federal Government savings associated with foreign exchange and subsidy reforms.

Oyedele also urged wealthy Nigerians to meet their tax obligations, warning that insufficient government revenue could contribute to inflationary pressures, higher borrowing costs and currency depreciation.

The proposed policy framework is expected to provide a more predictable environment for businesses while improving the coordination of government decisions on revenue, investment and economic development.

## Soludo Says Nigeria Needs Faster Economic Growth

Anambra State Governor, Charles Soludo, supported the need to maintain macroeconomic stability but warned that Nigeria’s growth rate remained inadequate to deliver rapid improvements in employment and poverty reduction.

“The macroeconomic framework, the stability that is back, must never be taken for granted,” Soludo said.

However, he argued that growth of about four per cent would not be sufficient to produce the scale of economic expansion required to create jobs and significantly reduce poverty.

He called for increased investment and stronger economic growth to ensure that macroeconomic improvements translated into better living conditions for Nigerians.

Oxford University Professor of Economic Policy, Stefan Dercon, also stressed the importance of controlling inflation and improving electricity supply, logistics and port operations.

Dercon cautioned against protecting domestic industries indefinitely, arguing that industrial policies should encourage businesses to become more competitive rather than depend permanently on government protection.

“You can’t keep on protecting in the same way,” he said.

Chema Triki, co-founder and managing director of Growth Teams, similarly argued that Nigeria needed to develop new productive capabilities and expand exports instead of relying excessively on its domestic market.

She pointed to the country’s low economic complexity and limited export diversification as reasons for strengthening industrial competitiveness.

Manufacturers Demand Lower Interest Rates, Better Infrastructure

The Group Managing Director of Flour Mills of Nigeria, Omoboyede Olusanya, called for lower interest rates, reliable infrastructure and improved agricultural productivity to reduce manufacturing costs.

He argued that expensive financing discouraged businesses from making long-term investments, while poor logistics and unreliable supplies of agricultural commodities weakened domestic production.

The discussions also highlighted concerns about Nigeria’s industrial protection policies.

Oyedele disclosed that vehicles assembled locally contained only about five per cent local content, despite benefiting from tariffs and levies that could provide protection of up to 60 per cent.

He advocated temporary, performance-based protection for domestic industries, alongside improvements in electricity supply, transportation and other infrastructure needed to make local manufacturing more competitive.

Lagos State Governor, Babajide Sanwo-Olu, highlighted investments in ports, transport corridors, rail infrastructure and food logistics as measures aimed at improving productivity and reducing business costs.

Meanwhile, the Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, urged the government to ensure that economic reforms produced tangible benefits for citizens.

He said the success of the reform agenda should be reflected in affordable living costs, productive employment and measurable improvements in household welfare.

FG Plans New Development Framework for 2026–2030

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, said the National Development Plan for 2026–2030 would prioritise industrialisation, infrastructure, investment mobilisation, human capital development and stronger institutions.

According to her, the plan is designed to accelerate economic growth, increase job creation and reduce poverty through improved coordination between government policies, budgets and investment programmes.

The proposed Nigeria Economic Policy Framework is expected to complement these objectives by providing a consistent direction for economic decision-making across successive administrations.

However, its eventual impact will depend on the outcome of public consultations, the approval process and the final legal and institutional arrangements adopted by the government.

For now, the proposal remains under consultation, with the Federal Government seeking broad agreement on the economic principles it believes should guide Nigeria’s future development.