Economic reforms introduced under President Bola Tinubu have pushed Nigeria’s poverty rate to about 63 per cent, according to a new report unveiled on Thursday.

The report, conducted by Agora Policy with support from the Nigeria Economic Stability and Transformation (NEST) programme and the UK’s Foreign, Commonwealth and Development Office (FCDO), was released at a Stakeholder Dialogue on Sustaining and Deepening Economic Reforms in Nigeria organised by the policy think tank in Abuja.

Findings from the study showed that the national poverty headcount rose sharply following the removal of petrol subsidy and electricity tariff adjustments, increasing from 49.8 per cent before the reforms to about 63.3 per cent afterwards.

The report explained that while the reforms have strengthened government finances and improved some macroeconomic indicators, they have also intensified the cost-of-living crisis for many Nigerians.

According to the findings, the removal of petrol subsidy and other policy adjustments triggered a surge in consumer prices, significantly eroding household purchasing power.

Data presented in the report showed that the average cost of a healthy meal rose from N515 in June 2023 to N1,611 by July 2025, while intercity bus fares increased from about N4,000 to N7,700 during the period.

Average rent prices also climbed from N1.79 million in 2023 to about N4.50 million in 2025, worsening financial pressure on households.

The study noted that low-income households were the most affected, with poverty levels rising sharply among this group after the reforms.

It added that government social protection measures, including cash transfers to vulnerable households, provided only limited relief and did not significantly reduce the poverty impact.

Beyond the statistical analysis, the study incorporated focus group discussions across Nigeria’s six geopolitical zones to capture the lived experiences of households and businesses.

Participants reported a sharp erosion of purchasing power, forcing families to adopt coping strategies such as reducing food consumption, trekking instead of using public transport, cutting electricity use and borrowing to meet basic needs.

Businesses also reported rising operational costs due to higher fuel and electricity prices. Many small and medium enterprises said they had to increase prices, downsize staff or switch to alternative energy sources to remain operational.

Despite these challenges, the report acknowledged that the reforms have improved some fiscal indicators. Nigeria’s external reserves rose from $35.09 billion in May 2023 to $50.45 billion by February 2026, while government revenue also increased.

Speaking at the event, Chair of Agora Policy, Ojobo Ode Atuluku, said the stakeholder dialogue was organised to assess the progress of ongoing reforms and explore ways of strengthening them.

Atuluku said the event formed part of a broader initiative supported by the NEST programme to promote economic growth and transformation in Nigeria.

She stressed that reforms must be constantly reviewed to ensure they remain inclusive and that their benefits are widely distributed while minimising the burden on citizens.

Atuluku added that economic policy should be a continuous conversation involving policymakers, implementers and citizens affected by the reforms.

“We are gathered here to deliberate on how to sustain, deepen, and improve current economic reforms while laying a stronger foundation for future ones.

“Economic policy must never be a one-off event. It should be a constant conversation between those who design reforms, those who implement them, and those who are impacted by them,” she said.

She explained that Agora Policy’s work under the programme focuses on three key areas: conducting independent research on economic reforms, convening stakeholder dialogues to encourage constructive discussions, and producing actionable policy recommendations to guide future reforms.

The dialogue featured panel discussions involving representatives from the Central Bank of Nigeria (CBN), the Special Adviser to the President on Economy and Finance, the Lagos Chamber of Commerce and Industry, civil society organisations and the World Bank. (The Sun, but headline rejigged)

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