Daniel Bwala, the Special Adviser to President Bola Tinubu on Policy Communication, has admitted that the administration’s economic reforms have pushed more Nigerians into poverty.
Speaking during an interview on Channels Television, Bwala acknowledged the severe hardship resulting from the government’s recent fiscal adjustments. While he conceded the increase in the number of people living below the poverty line, he insisted that the country has made “marked progress” since the implementation of these policies.
The admission comes amid intensifying national debate over the social cost of the “Renewed Hope” agenda, particularly following the removal of the petrol subsidy and the unification of the foreign exchange windows.
The admission regarding the impact of these reforms highlights the administration’s recognition of the immediate economic strain facing the populace, even as the presidency maintains that the long-term structural benefits are becoming visible.
The cost of structural adjustment
Since the inauguration of President Bola Tinubu in May 2023, the Nigerian economy has undergone significant structural shifts aimed at correcting long-standing fiscal imbalances. The decision to end the fuel subsidy regime, which had been a massive drain on the national treasury, led to an immediate and sharp rise in the cost of transportation and food production.
The simultaneous floating of the Naira has further compounded these challenges. The resulting devaluation has increased the cost of imports, driving up inflation to levels not seen in decades. For many Nigerians, the combination of higher fuel prices and a weaker currency has significantly eroded purchasing power, making basic necessities increasingly unaffordable.
Bwala’s comments on Channels Television suggest that the administration is aware of this widening poverty gap. However, the government’s defence rests on the premise that these painful adjustments are necessary to create a more transparent and sustainable economic framework. According to the adviser, the progress being made involves stabilising the macro-economy and increasing the government’s ability to generate revenue through improved fiscal discipline.
Data from the National Bureau of Statistics (NBS) has consistently shown a steady climb in the headline inflation rate, which has remained above 30 per cent in recent months. This inflationary pressure has hit low-income households the hardest, as a larger portion of their earnings is now diverted toward essential food items.
Despite claims of macro-economic progress, many economic analysts argue that the pace of social intervention has not matched the speed of the economic shock. While the government has introduced various palliatives, including cash transfers and agricultural support schemes, critics suggest these measures have been insufficient to mitigate the widespread food insecurity and rising unemployment currently affecting the country.
The administration’s focus remains on attracting foreign direct investment and stabilising the Naira, but the immediate concern for the majority of the population is the rising cost of living. As the government continues to implement its reform programme, the effectiveness of its social safety nets in protecting the most vulnerable remains a critical area of concern for policymakers and civil society organisations.
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