IMPI: Tinubu’s Reforms Reversed Fiscal Crisis, Improved Debt Profile
By Alabidun Shuaib AbdulRahman
The Independent Media and Policy Initiative, IMPI has said the economic reforms introduced by President Bola Tinubu’s administration have significantly improved Nigeria’s fiscal position, reduced the country’s debt burden and strengthened macroeconomic stability.
In a policy analysis released and signed by its Chairman, Omoniyi Akinsiju, the group said the Tinubu administration inherited a severe fiscal crisis in May 2023, characterised by a high debt service burden, mounting inflation and extensive reliance on the Central Bank of Nigeria’s Ways and Means advances.
According to the group, debt servicing had risen to about 96 per cent of federally generated revenue before the current administration assumed office, while outstanding Ways and Means advances exceeded N26.9tn and inflation climbed to 22.41 per cent in May 2023.
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The IMPI stated that although the Tinubu administration initially borrowed through the Ways and Means facility after assuming office, it later securitised the outstanding advances into long-term bonds and discontinued reliance on the Central Bank’s overdraft financing.
The group argued that Nigeria’s fiscal challenges predated the immediate past administration, tracing the country’s economic difficulties to what it described as “retrogressive and populist” fiscal policies implemented by successive governments between 1999 and 2015.
It claimed that despite earning an estimated $994.4bn in crude oil revenue during the administrations of former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua and Goodluck Jonathan, the country was left with significant debt and dwindling reserves, a situation it said constrained subsequent governments.
According to the report, Nigeria’s total public debt, excluding Ways and Means advances, stood at about $100.07bn when Tinubu assumed office in May 2023 before rising to $108.23bn by the end of that year.
The group, however, maintained that the administration reduced the debt stock to about $94.2bn by October 2025 and lowered the debt service-to-revenue ratio from about 97 per cent in 2023 to 50 per cent in 2025.
Although it acknowledged that the country’s debt later increased to about $110.97bn by April 2026,
IMPI argued that the borrowing was justified by infrastructure investments and constrained government revenues.
The policy group also credited the removal of fuel subsidy with boosting monthly allocations to the Federal Account Allocation Committee, saying distributions to the three tiers of government had consistently exceeded N1.5tn, compared to an average of about N650bn before the subsidy removal.
It further said the unification of Nigeria’s foreign exchange windows had improved market stability, reduced intervention costs and contributed to stronger investor confidence.
According to the report, the reforms also strengthened tax administration, increased non-oil exports and improved the country’s trade balance, while encouraging local manufacturing and economic diversification.
The IMPI added that ongoing investments in sectors such as banking, fintech, manufacturing, oil and gas, agriculture and housing were creating employment opportunities across the country.
It concluded that the Tinubu administration had restructured Nigeria’s fiscal framework from what it described as a consumption-driven model to an investment-led economy capable of sustaining growth, attracting investment and reducing the risk of future fiscal crises.
