Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has acknowledged that the administration’s economic reforms resulted in more Nigerians falling into poverty, while insisting that the country has recorded “marked progress” since the measures were introduced.
Bwala made the admission during an interview on Channels Television amid renewed debate over the economic impact of the Tinubu administration’s removal of the petrol subsidy and reforms to the foreign exchange market.
He argued that the increase in poverty should be viewed within the broader context of the economic restructuring undertaken by the government.
“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,” Bwala said.
“There is no part of the world where you start a reform like that there will not be discomfort.”
The presidential aide acknowledged that the reforms had increased the number of Nigerians living in poverty but maintained that economic conditions had improved since the measures were implemented.
“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 said.
Bwala added that the government recognised the hardship experienced by Nigerians but maintained that the reforms had produced improvements in the broader economy.
“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 added.
World Bank, IMF Recognise Economic Improvements
The admission comes amid an ongoing debate between the Federal Government, economists and opposition politicians over the effects of the reforms on Nigeria’s economy and households.
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.
However, the institution has also warned that improvements in macroeconomic indicators have not yet translated sufficiently into better living standards for millions of Nigerians.
The World Bank estimated in 2025 that Nigeria’s poverty rate had increased substantially over the preceding years, although it noted that much of the increase occurred before the Tinubu administration assumed office.
The International Monetary Fund has similarly recognised improvements in macroeconomic stability while identifying poverty and food insecurity as continuing challenges.
Subsidy Removal, Naira Depreciation Raise Living Costs
For many Nigerian households, the removal of the petrol subsidy and the depreciation of the naira resulted in higher transportation, food, energy and other household expenses.
The developments have fuelled debate over the distinction between macroeconomic stability and household welfare.
While the government has pointed to improvements in revenues and economic indicators, critics have continued to argue that many Nigerians are yet to feel the benefits of the reforms in their daily lives.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, has argued that the reforms helped restore macroeconomic stability and address longstanding distortions in the economy.
He has, however, maintained that the ultimate test of the reforms would be whether they translate into higher incomes, increased employment, reduced poverty and improved living standards.
Other analysts have similarly argued that the reforms may have addressed structural weaknesses in the economy while simultaneously imposing significant adjustment costs on households and businesses.
FG Defends Economic Reforms
The Federal Government has consistently maintained that the reforms were necessary because of the fiscal and structural challenges inherited by the Tinubu administration in 2023.
President Tinubu has repeatedly argued that maintaining the petrol subsidy would have continued to drain government resources that could otherwise be deployed to infrastructure, social services and development programmes.
The administration has also highlighted increased Federation Account revenues following the removal of the subsidy.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, previously said the Federal Government and subnational governments received increased revenues from subsidy savings between June 2023 and December 2025.
Oyedele, however, acknowledged that reducing poverty remains one of the administration’s major unfinished tasks.
The Federal Government has consequently promoted several intervention programmes aimed at cushioning the impact of the reforms, including social investment programmes, student loans, consumer credit initiatives, agricultural support and the Compressed Natural Gas transportation scheme.
The latest comments by Bwala reflect the administration’s broader argument that the economic reforms have involved significant short-term hardship while laying the foundation for improved economic performance and living standards over time.
