Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has acknowledged that the economic reforms introduced by the administration pushed more Nigerians into poverty, while insisting that the country has recorded significant progress since the measures began.
Bwala made the admission during an interview on Channels Television amid renewed debate over the socioeconomic impact of the removal of the petrol subsidy and the foreign exchange reforms.
He said the increase in poverty was an inevitable consequence of the economic restructuring, arguing that major reforms typically come with short-term hardship.
“Please let it be clear even to the opposition, the reason why you have this number of poor people and some of these doomsday analytics that people are giving is because we undertook a reform,” he said.
“There is no part of the world where you start a reform like that there will not be discomfort.
“More people went down to poverty, acknowledged, but since when the reform started to today, we have made marked progress, which is what we have spent the last three years talking to Nigerians about,” he added.
Bwala said the government recognised that a significant proportion of Nigerians remained poor but maintained that the reforms had improved the country’s economic position.
“So, you cannot discount that even though there are quite a number of our population that are poor, which we admit, but we have made progress so far,” he said.
The admission comes amid continuing disagreement among the Federal Government, opposition politicians and economists over the consequences of the administration’s economic policies.
The World Bank has acknowledged improvements in Nigeria’s macroeconomic position following the reforms, including stronger external balances, improved fiscal conditions and continued economic growth. It has, however, warned that these gains have yet to sufficiently translate into improved living standards for millions of Nigerians.
The International Monetary Fund has similarly recognised progress towards macroeconomic stability while noting that poverty and food insecurity remain major challenges.
For many households, the removal of the petrol subsidy and the depreciation of the naira have contributed to higher transportation, food, energy and other living costs, intensifying pressure on household incomes.
Economists have therefore distinguished between improvements in macroeconomic indicators and the immediate welfare conditions of households.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, has argued that the reforms addressed longstanding economic distortions and helped restore macroeconomic stability.
He, however, maintained that the ultimate measure of success would be whether the reforms lead to increased incomes, job creation, reduced poverty and improved living standards.
The Federal Government has consistently defended the reforms, arguing that they became necessary because of the fiscal and structural challenges inherited by the Tinubu administration in 2023.
President Tinubu has repeatedly said retaining the petrol subsidy would have constrained government resources available for infrastructure, social services and other development priorities.
The administration has also pointed to increased Federation Account revenues following the removal of the subsidy.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said the Federal Government and subnational governments recorded increased revenues from subsidy savings.
The government has subsequently introduced or expanded several interventions, including social investment programmes, student loans, consumer credit initiatives, agricultural support and the Compressed Natural Gas transportation scheme, as measures aimed at cushioning the effects of the reforms.
While the government maintains that the reforms are laying the foundation for a stronger economy, the continuing challenge remains translating macroeconomic gains into tangible improvements in the living conditions of ordinary Nigerians.
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