Okonjo-Iweala Endorses Tinubu’s Economic Reforms, Says Policies Have Stabilized Nigerian Economy
ABUJA — The Director-General of the World Trade Organization (WTO) and former Nigerian Minister of Finance, Dr. Ngozi Okonjo-Iweala, has praised President Bola Ahmed Tinubu’s economic reform agenda, describing it as being “in the right direction” and capable of delivering long-term benefits. Speaking to State House correspondents after a closed-door meeting with the President at the Aso Rock Presidential Villa on Wednesday, August 14, 2025, Okonjo-Iweala credited Tinubu and his economic team with stabilizing the economy and laying the foundation for future growth.
Okonjo-Iweala’s visit to the Presidential Villa came amid intense national debate over the impact of Tinubu’s reform policies, particularly the removal of fuel subsidies, the unification of exchange rates, and the liberalization of key sectors.
While the exact details of her discussion with the President remain undisclosed, sources at the Villa confirmed that the talks covered:
- Nigeria’s role in global trade under the WTO framework.
- The African Continental Free Trade Area (AfCFTA) and how Nigeria can optimize benefits.
- Strategies for sustainable growth and poverty reduction.
- WTO technical assistance opportunities for Nigeria.
Accompanied by senior aides, Okonjo-Iweala was received by top administration officials, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Trade, Industry, and Investment, Doris Uzoka-Anite.
After the meeting, Okonjo-Iweala told journalists:
“We (the WTO) think the President and his team have worked hard to stabilize the economy, and you cannot improve on an economy unless it is stable. He has to be given credit for the stability of the economy. The reforms have been in the right direction. What is needed next is growth. We now need to grow the economy, and we need to put in social safety nets so that people who are feeling the pinch of the reforms can also have some support to be able to weather the hardship.”
Her comments echo similar sentiments expressed by some international financial institutions in recent months, which have described Nigeria’s fiscal and monetary policy shifts as difficult but necessary.
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Since assuming office on May 29, 2023, President Tinubu has pursued what he calls a “bold economic reset” aimed at correcting structural distortions.
Key reforms include:
- Fuel Subsidy Removal — Announced during his inauguration, the removal ended decades of state-subsidized petrol prices, freeing up billions of naira in government revenue. However, it led to an immediate surge in fuel prices and transportation costs.
- Foreign Exchange Unification — The Central Bank of Nigeria (CBN) merged the official and parallel exchange rate windows, allowing market forces to determine the naira’s value. This move aimed to attract foreign investment but initially triggered currency volatility.
- Tax Reforms — Introduction of new digital service taxes, increased excise duties on certain goods, and efforts to expand the tax base.
- Public Sector Rationalization — Measures to reduce the cost of governance, including mergers of overlapping government agencies.
- Infrastructure Push — Targeted investments in power, roads, and port modernization, partly financed by savings from subsidy removal.
Okonjo-Iweala’s choice of words — “stability” first, “growth” next — reflects a classic sequencing in economic policy management. Stabilization refers to:
- Curbing inflationary pressures: Nigeria’s inflation rate, which peaked above 33% in mid-2024, has shown early signs of moderation according to the National Bureau of Statistics (NBS).
- Rebuilding investor confidence: International bonds and FDI inflows have started to recover, though still below pre-pandemic levels.
- Strengthening fiscal discipline: Reduced deficit spending and better revenue mobilization.
The growth phase she envisions would require policies to expand production, create jobs, and increase incomes — moving beyond macroeconomic firefighting to structural transformation.
While endorsing the reforms, Okonjo-Iweala stressed the need for social protection measures to cushion vulnerable populations against the short-term shocks of economic restructuring.
Potential safety net mechanisms include:
- Conditional Cash Transfers to low-income households.
- Targeted food subsidies for essential staples.
- Public works programs to provide employment.
- Education and health subsidies for the poorest communities.
Her warning reflects a growing concern that without these buffers, public support for reforms could erode, leading to political pushback.
As head of the WTO, Okonjo-Iweala has repeatedly championed Africa’s integration into global value chains. Nigeria, with its population of over 220 million, is a prime candidate for manufacturing and services export growth if it can overcome infrastructure bottlenecks and regulatory hurdles.
In the meeting, she reportedly explored:
- Trade facilitation reforms to reduce port delays and customs inefficiencies.
- Digital trade development to leverage Nigeria’s tech sector.
- Agricultural export standards to improve access to high-value markets.
Business Community:
The Manufacturers Association of Nigeria (MAN) welcomed her remarks as a vote of confidence in Tinubu’s policy direction but urged faster stabilization of the exchange rate to enable better business planning.
Labour Unions:
The Nigeria Labour Congress (NLC) maintained its criticism of subsidy removal without adequate palliatives, warning that macroeconomic stability “means little to workers who cannot afford transport to work.”
Economists:
Independent economist Dr. Ayo Teriba said Okonjo-Iweala’s praise is “significant” given her track record in Nigerian and global economic management but stressed that “the growth stage she calls for is the real test of reform success.”
Okonjo-Iweala herself oversaw similar policy battles during her two stints as Finance Minister (2003–2006, 2011–2015). In 2012, she backed the Jonathan administration’s attempt to remove fuel subsidies, which sparked nationwide protests. The experience demonstrated the political difficulty of reforms, even when economically justified.
International Context
Tinubu’s reforms are unfolding amid global headwinds:
- Sluggish global growth dampens demand for exports.
- Geopolitical tensions affect oil prices, Nigeria’s main export earner.
- Climate change adaptation costs place additional fiscal strain.
Against this backdrop, the WTO chief’s message seems to be that Nigeria must lock in its stabilization gains quickly and pivot to competitiveness-enhancing measures.
Policy experts say the transition from stability to growth will require:
- Energy Sector Reform — Expanding electricity generation and distribution to power industry.
- Export Diversification — Moving beyond oil to manufactured goods, agro-processing, and digital services.
- Human Capital Development — Investing in skills to support emerging sectors.
- Ease of Doing Business Reforms — Reducing red tape and corruption.
- Regional Trade Leverage — Fully exploiting AfCFTA opportunities to access a 1.4 billion-person African market.
Tinubu’s willingness to implement politically risky reforms early in his tenure has drawn comparisons to leaders who front-load tough policies in hopes of reaping benefits later. However, with hardship still acute for many Nigerians, the administration’s ability to sustain public patience will hinge on delivering visible improvements within the next 18–24 months.
Okonjo-Iweala’s endorsement may boost Tinubu’s standing internationally, but domestically, his administration must contend with a public that measures progress in tangible terms — food prices, transport fares, job opportunities.
Okonjo-Iweala’s remarks position Tinubu’s reforms within a global framework of economic restructuring aimed at long-term competitiveness. Her dual call for growth and social protection highlights the delicate balance needed to turn stabilization into shared prosperity.
Whether Nigeria can navigate this transition successfully will depend on disciplined policy implementation, transparent governance, and the political will to sustain reforms in the face of inevitable resistance.
In the short term, the task is to keep the economy stable; in the medium term, to spark growth; and in the long term, to ensure that growth is inclusive. If that trajectory holds, Okonjo-Iweala’s optimism may yet prove justified — but the road ahead will be anything but easy.