- Tinubu’s reforms prevented Nigeria’s economy from collapsing
- Inflation and food prices began easing late in 2025
- Fuel subsidy removal improved product availability
- New tax policy shields low-income traders
A former Deputy Governor of the Central Bank of Nigeria (CBN), Dr Tunde Lemo, has stated that Nigeria’s economy would have collapsed without the tough reforms introduced by President Bola Tinubu, insisting that signs of recovery are already emerging.
Lemo made the remarks while speaking on Frontline, a current affairs programme on Eagle 102.5 FM, Ilese-Ijebu, where he described the Nigerian economy as resilient despite the hardship experienced in the past year.
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“We thank God because we are beginning to see light at the end of the tunnel. The economy is resilient,” Lemo said
According to him, although prices remain high, inflation has been steadily declining, with both headline and food inflation easing towards the end of 2025. He noted that the exchange rate has also shown signs of stability.
Lemo identified December 2025 as a turning point, saying Nigerians no longer had to queue for food as seen earlier in the year, a change he linked to the removal of fuel subsidy.
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“For the first time in December, we didn’t need to queue up for food. Those who bought wisely will tell you prices were about 20 per cent cheaper than the previous year,” he said.
Defending President Tinubu’s decision to remove fuel subsidy despite initial shocks, Lemo argued that the policy ensured product availability and reduced panic buying.
“Yes, subsidy was removed and prices spiked initially, but it brought in enough products. Now, people are no longer running helter-skelter, and prices are trending downward,” he added.
On taxation, Lemo dismissed criticism of the new tax regime, insisting that there is never a ‘perfect time’ to pay tax.
“It is only in Nigeria that people do not want to pay tax but expect government to provide everything,” he said.
He warned against excessive borrowing or reliance on central bank financing, stressing that such practices fuel inflation and weaken the economy.
Lemo also clarified that small traders earning below ₦100 million annually are exempt from tax, noting that the policy protects the poor.
“Would a woman selling pepper by the roadside make ₦100 million a year? The new tax law protects the poor more than the rich. The loudest critics are the elites,” he said.
