BudgIT Charges FG On Impact Of Economic Reforms On Nigerians

Nigeria’s economic reforms may be improving government revenues, but Nigerians are yet to fully feel the benefits, with rising food and fuel costs continuing to squeeze household incomes, civic-tech organisation BudgIT has said.

In an analysis of the impact of the reforms, BudgIT said states received ₦15.5 trillion in revenue in 2025, up sharply from ₦4.8 trillion in 2022. However, it warned that the increase in government revenue should not automatically be interpreted as improved fiscal capacity or better living standards.

The organisation pointed to 20.31 per cent food inflation in July and petrol prices of about ₦1,345 per litre in parts of the country, compared with ₦617 per litre in July 2023.

According to BudgIT, the rise in fuel prices has effects far beyond the pump, feeding into transport fares, food prices, production costs and the amount of money households have left after meeting their basic needs.

It argued that inflation, naira depreciation and growing debt obligations have also raised the cost of running government, meaning that higher nominal revenue figures do not necessarily translate into greater purchasing power or improved public services.

“Nigerians cannot eat GDP growth,” BudgIT said, stressing that the real test of economic reform should be whether citizens’ incomes can go further, public services reduce the costs households have to bear privately, and economic shocks no longer push more people into poverty.

The organisation said the reform dividend should therefore be measured not only by the amount of money flowing into government accounts, but by tangible improvements in the daily lives of Nigerians.

BudgIT said its report, Nigeria’s Economic Reforms: What Has Changed Across Nigeria’s States, provides a detailed assessment of the effects of the reforms across the country and what the changes mean for citizens.