The burden of reform: Who pays the price in Nigeria?

At Nigeria’s recent Economic Summit, World Bank Chief Economist Indermit Gill set a long horizon, warning that Nigeria’s economic reforms could take another decade or more to yield results. For Nigerians enduring record inflation, surging living costs, and a volatile currency, this call for patience has felt detached from reality. As policymakers tout a vision of gradual transformation, Nigerians are left wondering whether the government’s reform strategy genuinely aims to reduce their hardships or merely shifts the burden onto them indefinitely.

“These structural flaws have left many questioning the equity of Nigeria’s current approach: why must Nigerians shoulder austerity alone?”

Gill’s remarks come amid widespread frustration over an agenda that relies heavily on the sacrifices of ordinary citizens, while Nigeria’s leaders appear reluctant to address the deeply rooted issues that continue to hinder economic progress. The removal of fuel subsidies and exchange rate reforms, though necessary steps, have intensified pressure on a population already dealing with poverty and unemployment. Yet, the government has made few moves to trim its own spending, curb corruption, or reform inefficient institutions. These structural flaws have left many questioning the equity of Nigeria’s current approach: why must Nigerians shoulder austerity alone?

Economic analysts, including Tilewa Adebajo, have openly criticised Nigeria’s reform framework, arguing that it prioritises austerity at the expense of growth. The devaluation of the naira, along with soaring inflation, has battered purchasing power, while a lack of effective social interventions has left citizens vulnerable. These outcomes underscore a fundamental flaw in the current strategy: reforms should serve as a catalyst for broader prosperity, not merely as an exercise in endurance.

One glaring opportunity for reform lies in the Nigerian National Petroleum Corporation (NNPC), an entity that should be generating billions in tax revenue annually. Yet NNPC remains a symbol of inefficiency, its potential untapped. Adopting a model similar to the Nigerian liquefied natural gas company could inject much-needed revenue into the Treasury, alleviating some of the fiscal pressure without adding to citizens’ hardships. Moreover, privatising the Nigerian Gas Company Limited could bring rapid gains to Nigeria’s energy sector and address its chronic power shortages. These reforms, achievable without imposing additional burdens, remain inexplicably sidelined.

Missed opportunities extend beyond energy. Nigeria holds trillions of naira in dormant assets that could be leveraged to generate revenue, reduce public debt, and create jobs. By transferring ownership or management of these assets to private hands, Nigeria could stimulate economic growth without cutting essential social services. The successful privatisation of the Eleme Petrochemical Plant demonstrates that such moves are both feasible and impactful.

Read also: What can derail gains of Nigeria’s economic reforms?

Nigeria’s agricultural sector, too, urgently needs intervention. While the administration has placed agriculture high on its list, actual measures have fallen short. Insecurity in key farming regions continues to stifle productivity and push food prices up, creating needless scarcity. A more concerted regional approach to restoring security in farming belts, coupled with investment in reducing farm-to-market waste, could stabilise food supplies and bring relief to household budgets.

The government deserves credit for taking bold steps to eliminate the fuel subsidy, but courage alone does not constitute reform. Without structural changes, Nigerians will continue to bear a disproportionate share of the burden. The next budget cycle provides an opportunity for Nigeria’s leaders to demonstrate that they are prepared to act in the national interest. Reducing state spending, enforcing anti-corruption measures, and prioritising institution-wide reforms would not only strengthen the economy but would signal a commitment to genuine shared sacrifice.

Nigeria’s policymakers must recognise that meaningful reform is about delivering results, not merely testing the public’s endurance. As Nigeria faces an uncertain economic future, its leaders should pivot from rhetoric to action, implementing reforms that foster both opportunity and accountability. Nigeria’s citizens deserve a government that is as committed to reforming itself as it is to demanding sacrifices from them. The time for transformative, accountable reform is now.