In the last two years, Nigeria has embarked on one of the boldest waves of economic reforms in its post-independence history. Fuel subsidy removal, foreign exchange unification, tightening of monetary policy, the Student Loan Act, the enactment of the Electricity Act, and a renewed push for fiscal discipline have reshaped the country’s macroeconomic architecture. Also, there have been individual empowerment opportunities and infrastructure, and investment drives. These reforms—often painful and politically risky – were necessary. But necessity alone does not guarantee outcomes. For the reforms to matter, they must move beyond spreadsheets and press releases to streets and households. The question is no longer what Nigeria has done; it is what Nigerians will do with it.
The challenge now is translating macro-level reforms into micro-level impacts. The success of Nigeria’s economic transition depends not just on Abuja, but on what state governments, private enterprises, and households do next. This is where reform becomes reality.
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What states must do: The rise of subnational sovereignty
The Electricity Act of 2023, perhaps one of the most underappreciated reforms, now gives state governments the legal right to generate, transmit, and distribute power. For the first time, Nigeria’s governors have both the constitutional authority and the responsibility to solve their own electricity problems. Lagos, Kaduna, and Edo are already showing signs of movement. But more must follow.
Power, more than any other sector, has multiplier effects on productivity, education, and healthcare. States that embrace decentralised energy, mini-grids, solar clusters, and rural electrification will accelerate MSME growth, attract industry, and reduce urban migration.
Similarly, states must adopt investment promotion strategies tailored to local assets. This means streamlining land registration, digitising tax systems, and creating one-stop shops for business permits. Rather than waiting for federal bailouts, states must leverage their land, people, and diaspora networks to attract capital and build resilience.
Social impact will come not from Abuja’s pronouncements, but from Ibadan’s roads, Enugu’s power supply, and Kano’s agricultural hubs. This is subnational federalism’s moment.
“Importantly, social impact must not be outsourced to the government. Communities can organise around cooperatives, savings groups, and neighbourhood services. The average Nigerian has always known how to survive, reform offers the chance to transform that survival into scale.”
How businesses can adapt: From cost-cutters to solution builders
The private sector must also pivot. In a high-interest-rate environment, where the Monetary Policy Rate (MPR) hovers at 27.5 percent (Trading Economics) and credit remains tight, Nigerian firms face pressure to cut costs. But the smarter ones are innovating for resilience.
Manufacturers must double down on local sourcing and backward integration. The FX unification makes imports more expensive, but also makes domestic production more competitive. From agro-processing to pharmaceuticals, opportunities abound for firms that localise their supply chains.
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Tech companies, especially fintechs, can align profit with inclusion. Nigeria’s financial inclusion rate remains below 70 percent. The 133 million Nigerians in multidimensional poverty represent not just a social crisis but a market opportunity for insurance, credit, and low-cost digital services.
In housing, transport, and health, impact-led infrastructure is the new frontier. Private capital can now work alongside public reforms to deliver low-cost housing, off-grid power, and basic diagnostics. But to do this credibly, companies must adopt ESG frameworks, measure outcomes, and move from CSR to core impact.
The economy is being reset. Firms that see this as a cue to solve real problems, not just extract margins, will shape Nigeria’s next chapter.
What households can do: Financial literacy as a survival strategy
For households, the reforms have been most felt through survival hardship: fuel prices have tripled, inflation has exceeded 30 percent, and the cost of living has soared. Yet this pain is not without purpose. The unwinding of decades-old distortions has opened up a more rational economic environment—where price signals matter, and planning becomes possible.
To survive and thrive, individuals must embrace financial literacy. This means understanding budgeting, debt management, and investing in skills with long-term demand. The era of rent-seeking is narrowing; the future belongs to those who can earn, save, and adapt.
With public jobs shrinking, households must explore informal-to-formal transitions. Side hustles, gig work, and digital services now represent a bridge from vulnerability to viability. What is needed is government support for micro-enterprises and digital access for rural communities.
Importantly, social impact must not be outsourced to the government. Communities can organise around cooperatives, savings groups, and neighbourhood services. The average Nigerian has always known how to survive; reform offers the chance to transform that survival into scale.
Entrepreneurial proceedings: Sustainable implementation framework
Success requires coordination between all stakeholders. Companies must move beyond traditional corporate social responsibility to embedded social impact models where community benefit is integral to business strategy. This creates sustainable programmes that don’t depend on philanthropy alone.
Subnational governments must establish clear metrics for social impact and create transparent reporting mechanisms. Citizens need to see direct connections between policy changes and improvements in their lives.
Individual entrepreneurs and professionals must be empowered through mentorship programmes and access to markets. This creates multiplier effects where successful individuals become employers and community leaders.
Bridging reform and reality: Policy must meet the pavement
None of this will work without feedback loops. Policymakers must measure not just macro-stability but micro-wellbeing. Is the average Nigerian eating better? Is the small business owner accessing power, finance, and demand? Is the rural school connected to electricity and the internet? To ensure this, the government must expand social protection, not as political giveaways but as targeted buffers during transition. Also, there is a need to invest in public data systems, digital IDs, poverty maps, and fiscal dashboards that guide interventions. Furthermore, we must find a way to mandate policy continuity through executive orders and National Assembly oversight. These reforms must be seen as infrastructure, not just ideology, platforms on which the poor, the vulnerable, and the ambitious can build better lives.
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The way forward: A new social compact
The road from subsidy to sustainability, from dual exchange rates to FX transparency, and from fiscal recklessness to revenue reform is long and winding. But it is a road worth travelling.. Nigeria’s reforms since 2023 are not a miracle cure. They are a hard reset, a recalibration of incentives. But they open up space for action: by states with power autonomy, by businesses with market clarity, and by citizens with new tools. The ultimate test of these reforms will not be inflation rates or GDP growth. It will be whether the tomato seller in Kano, the barber in Warri, and the teacher in Osogbo feel that the Nigerian economy finally works for them.
If reform ends in numbers, we have failed. If it ends in human dignity and economic mobility, we will have succeeded.
Dr. Oluyemi Adeosun, Chief Economist, BusinessDay Media
