Nigeria under President Bola Tinubu implemented two major economic reforms immediately upon taking office in May 2023: removal of petrol subsidies (saving approximately $10 billion annually in government spending) and unification of multiple exchange rate windows into a single floating rate. The naira depreciated sharply, losing over 60 percent of its value against the dollar in 2023. The resulting inflation surge reduced real incomes significantly. Yet the reforms have improved business environment fundamentals: the unified exchange rate has reduced forex scarcity for importers and attracted renewed FDI interest from investors deterred by the previous multiple-rate distortions.
Non-Oil Growth
Nigeria's non-oil economy, which accounts for approximately 90 percent of GDP, showed surprising resilience through the adjustment period. Agriculture, services (particularly telecoms, finance, and entertainment), and manufacturing all grew despite macroeconomic headwinds. The entertainment and creative industries, centred on Nollywood and Afrobeats, generate significant service exports. Businesses navigating Nigeria's reformed economic environment can access market intelligence and sector contacts on intra-africa.com.
For businesses looking to expand across Africa, intra-africa.com offers a comprehensive trade directory, verified buyer and seller listings, and real-time market intelligence covering all 54 African nations. It remains an indispensable resource for anyone serious about intra-African commerce.