FG considers law to prevent reversal of economic reforms

The Federal Government is considering legislation to protect Nigeria’s economic reforms from reversal by successive administrations, as part of efforts to institutionalise policy consistency and prevent a return to practices considered harmful to the economy.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Monday during the 32nd Nigerian Economic Summit in Abuja, themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity.”

Oyedele said the government was seeking national consensus on an economic policy framework that could be backed by law, providing binding principles for future policy decisions, including taxation, tariffs, subsidies, investment and industrial development.

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

The minister explained that the proposal was intended to prevent future administrations from abandoning reforms for short-term political considerations, particularly in areas such as petrol subsidy removal.

He said, “Any ideas of returning it, we should forget about it. That economic policy framework, you will see by the time you start responding to us, part of the question we ask is, should we enact it into law? How do we strengthen the institutions?”

According to him, the government envisages a system in which public officials and political appointees would be required to understand and comply with the agreed economic principles.

He explained that the framework could become part of the screening process for government appointments, while copies could accompany appointment letters to guide policy decisions.

However, Oyedele clarified that the proposed Nigeria Economic Policy Framework remained a consultation draft and had not been approved as government policy.

He said public consultation would continue until November 27, 2026, through the Ministry of Finance’s website, after which the document would proceed to the Federal Executive Council for approval and the National Economic Council for endorsement.

Presenting the framework earlier, Oyedele criticised Nigeria’s history of inconsistent economic policies, saying successive governments had repeatedly undermined earlier reforms.

“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 framework proposes mandatory Policy Impact Assessments before major economic interventions, requiring regulators to establish the evidence, costs, beneficiaries and expected duration of proposed measures.

It also recommends an annual National Economic Scorecard, to be published by Independence Day, measuring changes in real wages, productive employment and poverty.

Oyedele said the framework would be built around stability, productivity, enterprise, capital, people, markets and institutions, with private businesses driving growth under predictable regulations.

He added that political parties might eventually focus on explaining how they would implement a nationally agreed economic policy rather than producing competing economic manifestos.

On petrol subsidy, the minister maintained that artificially suppressing prices had distorted the economy and created problems that became more expensive to correct.

He argued that the priority should be increasing household incomes rather than attempting to maintain prices below sustainable market levels.

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

The minister also questioned Nigeria’s industrial protection policies, revealing that vehicles assembled domestically contained only about five per cent local content despite enjoying tariff and levy protection of up to 60 per cent.

He advocated temporary, performance-based protection for domestic industries, alongside improvements in electricity, logistics and manufacturing competitiveness.

Oyedele further disclosed that the government was targeting low single-digit inflation before the end of 2027 to create conditions for single-digit interest rates, although he declined to give a definite timeline for achieving cheaper borrowing.

He maintained that reforms were already producing benefits, citing improved access to foreign exchange, student loans, pension payments, wage adjustments and subsidised credit for small businesses.

According to him, salary increases and wage adjustments accounted for the largest expenditure item from Federal Government savings associated with foreign exchange and subsidy reforms.

He also urged wealthy Nigerians to meet their tax obligations, warning that inadequate revenue could worsen inflation, borrowing costs and currency depreciation.

The Minister of Budget and Economic Planning, Abubakar Bagudu, reinforced the government’s position, saying President Bola Tinubu had directed officials to sustain the reforms despite concerns about their immediate impact on households.

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

Bagudu said the Federal Government had secured agreements with states on better coordination of fiscal and monetary policies, infrastructure development, security and domestic production.

He added that more than $6bn had been mobilised from the World Bank and other development partners to support household resilience and economic opportunities.

Also speaking, Anambra State Governor, Charles Soludo, warned against abandoning macroeconomic stability, stressing that Nigeria needed sustained policy discipline to achieve meaningful growth.

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

Soludo, however, argued that the current growth rate of about four per cent remained insufficient to deliver rapid poverty reduction and employment creation, calling for substantially higher investment and economic expansion.

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

He cautioned against indefinite protection for domestic industries, saying, “You can’t keep on protecting in the same way.”

Co-founder and Managing Director of Growth Teams, Chema Triki, said Nigeria needed to develop new productive capabilities and expand exports rather than depend excessively on its domestic market.

She cited Nigeria’s low ranking in economic complexity and limited export diversification as evidence of the need for stronger industrial competitiveness.

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 long-term investment, while poor logistics and unstable commodity supplies weakened domestic industries.

Meanwhile, Lagos State Governor, Babajide Sanwo-Olu, highlighted investments in ports, transport corridors, rail infrastructure and food logistics as measures to improve productivity and reduce business costs.

The Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, urged the government to ensure that economic reforms translated into affordable living costs, productive employment and measurable improvements in household welfare.

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

She said the plan targeted faster economic growth, increased job creation and a reduction in poverty through better coordination between government policies, budgets and investment programmes.