Imo State Governor and Chairman of the Progressive Governors’ Forum, Hope Uzodimma, has defended the economic reforms introduced by President Bola Ahmed Tinubu, saying the policies have stabilised Nigeria’s finances, boosted investor confidence, and set the country on the road to long-term economic recovery.
Uzodimma made the remarks on Monday in Abuja during an engagement with members of the diplomatic community organised under the Renewed Hope Ambassadors platform.
According to the governor, the removal of fuel subsidy and the decision to allow market forces determine the value of the naira represented a major shift in Nigeria’s economic policy direction.
“That said, let me now begin by making my proposition quite clear. The trajectory of the Federal Republic of Nigeria under the administration of President Bola Ahmed Tinubu is one of foundational repair, followed by visible signs of economic recovery,” Uzodimma said.
He explained that the two major reforms introduced at the start of the administration in May 2023 had become the basis for the country’s current economic transformation.
“These are the removal of the petroleum subsidy and allowing the value of the Naira to be determined by market forces, or simply floating the Naira. Those two decisions can be described as the hinge on which everything has since turned,” he said.
Uzodimma described the former fuel subsidy system as a deeply flawed structure that encouraged large-scale corruption and drained public resources for decades.
“For decades, the petroleum subsidy regime in Nigeria functioned as the single largest organised corruption pipeline in our public finances,” he said, adding that subsidy claims were often based on “imaginary volumes of petrol” and inflated documentation.
He alleged that “a small network of cartels, middlemen, and well-placed officials grew wealthy on the haemorrhaging of the national treasury,” while international financial institutions repeatedly advised Nigeria to discontinue the arrangement.
The governor praised Tinubu’s decision to abolish the subsidy immediately after assuming office, saying it shut down “the biggest corruption avenue with the announcement of just one policy.”
“Removing the subsidy did not reduce corruption by some incremental margin. It eliminated the channel itself,” he added.
Uzodimma said the reforms had significantly increased revenue available to the federal, state, and local governments through the Federation Account Allocation Committee.
He stated that “in the 2023 financial year, the Federation Account Allocation Committee distributed approximately 10.14 trillion naira,” while monthly allocations had recently climbed to between 1.8 trillion and 2.6 trillion naira.
According to him, state governments now receive improved monthly disbursements, noting that “state governments now receive net allocations in the order of 700 to 800 billion naira monthly.”
He further claimed that many states no longer rely on emergency borrowing to settle salary obligations.
“the era of subnational governments regularly taking high-interest commercial loans simply to meet their monthly wage bills is over.”
“As the Chairman of the Progressive Governors’ Forum, I can tell you… that our states have not been at this level of fiscal health in living memory,” he said.
The governor also linked ongoing infrastructure projects across the country to improved government finances, citing federal initiatives such as the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Superhighway.
He added that state governments were now pursuing ambitious projects, including power initiatives, road construction, youth-focused programmes, and improved worker welfare.
“The federal courage triggered subnational ambition,” he said.
On exchange rate reforms, Uzodimma criticised the previous multiple exchange rate regime, saying it encouraged arbitrage and unfair advantages for rent-seekers at the expense of legitimate businesses and ordinary Nigerians.
He said the unification of the foreign exchange market under the Tinubu administration improved transparency and strengthened confidence in the economy.
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While acknowledging that the reforms initially caused inflation and public dissatisfaction, Uzodimma maintained that the government stayed committed despite the difficulties.
He disclosed that Nigeria’s foreign reserves increased from $32 billion in 2024 to $49.4 billion as of March 2026, while exchange rate stability and diaspora remittances also improved.
The governor further stated that investor confidence had grown, reflected in rating upgrades and renewed market activity.
According to him, inflation declined from above 27 per cent to around 15 per cent, while the economy expanded by 4.07 per cent in the fourth quarter of 2025.
He added that Nigeria’s economy had grown to 441.5 trillion naira, driven by improved performance in critical sectors.
Uzodimma noted that reforms in taxation, education, security, and digital infrastructure were also helping to improve productivity and attract investment.
Also speaking at the event, the Minister of Budget and Economic Planning, Atiku Bagudu, said the Renewed Hope Agenda was strengthening cooperation among the federal government, state governments, and international development partners.
Bagudu said Nigeria remained committed to achieving its target of becoming a $1 trillion economy, stressing that opportunities for investment existed in infrastructure, agriculture, climate initiatives, skills development, and digital technology.
He added that the Tinubu administration had sustained major reforms while promoting democratic governance and closer collaboration with state governments through platforms like the National Economic Council.