World Trade Organization (WTO) Director-General, Dr. Ngozi Okonjo-Iweala, says President Bola Tinubu’s administration deserves credit for restoring macroeconomic stability to Nigeria through a series of bold and politically risky reforms.
Speaking to State House correspondents on Thursday after a closed-door meeting with the President at the Presidential Villa, Abuja, the former Nigerian Finance Minister said economic stability is the essential foundation for any sustainable growth.
“The president and his team have worked hard to stabilize the economy, and you can’t really improve an economy unless it’s stable,” she said. “He has to be given the credit for the stability of the economy, so the reforms have been in the right direction.”
From Stability to Growth
Okonjo-Iweala stressed that stabilisation is only the first leg of the recovery journey. The next phase, she said, must focus on inclusive economic growth, job creation, and robust social safety nets to cushion the impact of reforms on vulnerable Nigerians.
“What is needed next is growth. We now need to grow the economy and put in social safety nets so that the people who are feeling the pinch of the reforms can have some support to weather the hardship.”
Her remarks underscore the balancing act Tinubu’s government faces: maintaining fiscal and monetary discipline while ensuring reforms translate into tangible improvements in citizens’ lives.
Reforms Reshaping Nigeria’s Business Climate
International financial institutions, including the World Bank, have noted early signs of stabilisation under Tinubu’s reform agenda. Key policy shifts—particularly in petroleum subsidy removal, foreign exchange liberalisation, and power sector restructuring—are credited with:
- Boosting national revenue
- Reducing the fiscal deficit
- Creating a more predictable investment environment
The World Bank projects 3.6% GDP growth in 2025, provided the reform momentum continues. However, inflation remains elevated, posing a headwind to household welfare and business cost structures.
Social Safety Nets: The Missing Link
Okonjo-Iweala argued that reform credibility will ultimately hinge on how well the government shields low- and middle-income households from short-term pain. This involves:
- Expanding targeted cash transfer programmes
- Subsidising access to essential public services
- Supporting SMEs to absorb displaced labour and spur entrepreneurship
Such measures, she said, will help translate macroeconomic stability into inclusive prosperity—a prerequisite for political sustainability of the reforms.
Women Exporters Fund: Driving Inclusive Trade Growth
Earlier in the day, Okonjo-Iweala joined First Lady Senator Oluremi Tinubu to launch the Women Exporters Fund, jointly managed by the WTO and the International Trade Centre (ITC) in Geneva.
Nigeria was one of only four countries globally selected for the initiative, aimed at scaling women-led enterprises in the digital economy. Out of 67,000 Nigerian applicants, 146 were selected:
- Booster Track: 16 high-growth businesses to receive 18 months of technical and business support
- Growth Track: 100 entrepreneurs to receive $5,000 each plus a year of business development support
- Tailored Assistance: Remaining beneficiaries to access customised capacity-building resources
Okonjo-Iweala called the programme “just the beginning” of a broader push to diversify Nigeria’s export base and create jobs through female entrepreneurship.
Political Economy Insight
From a political economy perspective, the WTO chief’s endorsement is strategically significant. It sends a signal to global investors, development financiers, and trade partners that Nigeria’s reforms are gaining international credibility. This could:
- Enhance Nigeria’s sovereign credit perception
- Unlock concessional financing for infrastructure and social programmes
- Improve the country’s negotiating leverage in global trade forums
However, the reforms’ political durability will depend on whether ordinary Nigerians see visible improvements in living standards—a dynamic that could shape electoral politics and social stability over the next three years.
Bottom line:
Tinubu’s administration has stabilised a faltering macroeconomic environment, earning plaudits from one of the world’s most respected economic voices. The real test now lies in turning stability into growth, growth into jobs, and jobs into broad-based prosperity—while building the social safety nets needed to keep reforms politically and socially sustainable.
