Tinubu’s Policies End Era of State Bailouts, Boost FX Reserves to $49.4bn – Uzodimma

Tinubu’s Policies End Era of State Bailouts, Boost FX Reserves to $49.4bn – Uzodimma

Governor of Imo State and Chairman of the Progressive Governors’ Forum, Hope Uzodimma, says the sweeping economic reforms introduced by President Bola Ahmed Tinubu under the Renewed Hope Agenda have significantly strengthened Nigeria’s economy, raised foreign reserves to $49.4 billion and restored investor confidence in the country.

Uzodimma made the remarks on Monday during an interactive session with members of the diplomatic corps accredited to Nigeria in Abuja, where he presented what he described as the economic trajectory of the Tinubu administration since assuming office in May 2023.

According to the governor, Nigeria’s external reserves rose from approximately $32 billion in mid-2024 to $49.4 billion by the end of March 2026, providing about 13 months of import cover and reflecting stronger macroeconomic management.

He said the increase in reserves was one of several indicators showing that the administration’s reforms were beginning to stabilise the economy after years of fiscal distortions and foreign exchange uncertainty.

Uzodimma identified the removal of fuel subsidy and the unification of the foreign exchange market as the two most important reforms introduced by the Tinubu administration.

He described the subsidy removal as one of the boldest anti-corruption measures ever undertaken in Nigeria, arguing that the former subsidy regime had become a major channel for fraud, waste and revenue leakages.

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According to him, funds that were previously spent on petrol subsidy payments are now being redirected toward infrastructure projects, social investments and economic expansion across the federation.

The governor also defended the decision to float the naira and unify exchange rates, saying the reforms restored transparency and credibility to the foreign exchange market by eliminating multiple exchange rate windows that encouraged arbitrage and rent-seeking.

“The chaos that used to make Nigeria’s macroeconomic indicators effectively fictitious has been retired,” Uzodimma said.

“An investor coming into Nigeria today can build a financial model that holds. A multinational planning regional headquarters in Lagos or Abuja is no longer asked to bet on which exchange rate will be enforceable when the time comes to repatriate earnings.”

He disclosed that the gap between the official and parallel market exchange rates, which previously exceeded 30 per cent, has now fallen below two per cent.

Uzodimma further revealed that diaspora remittances increased from around $200 million monthly in 2023 to nearly $600 million monthly, while liquidity in the foreign exchange market climbed to $10 billion in April 2026.

He added that the Federal Government had cleared over $10 billion in outstanding foreign exchange liabilities inherited from the previous administration and secured more than $50 billion in foreign direct investment commitments.

The governor said global financial institutions and rating agencies were beginning to acknowledge the impact of the reforms, citing recent credit rating upgrades and improved outlooks from Fitch Ratings and Moody’s.

On revenue generation, Uzodimma stated that monthly allocations from the Federation Account Allocation Committee now range between N1.8 trillion and N2.6 trillion, compared to significantly lower figures before the reforms.

He said state governments currently receive between N700 billion and N800 billion monthly, with allocations reaching N784 billion in February 2026 — representing a 23 per cent increase compared to the same period in the previous year.

According to him, the increase in revenues has significantly improved the fiscal capacity of subnational governments and reduced dependence on federal bailouts for salary payments.

“Thanks to this policy, the era of state governors travelling to the Federal Capital to ask for emergency bailouts to pay salaries is over,” he stated.

Uzodimma nevertheless acknowledged that the reforms came with short-term economic pain for many Nigerians but insisted that the policies were necessary to reposition the economy for long-term stability and sustainable growth.

Economic analysts have also noted improvements in Nigeria’s external reserves and exchange rate stability in recent months, although concerns remain over inflation, cost of living pressures, insecurity and revenue generation challenges.

Tinubu’s Policies End Era of State Bailouts, Boost FX Reserves to $49.4bn – Uzodimma