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President Bola Tinubu has said his administration is determined to further reduce inflation in 2026 and ensure that the benefits of ongoing economic reforms reach households across Nigeria.
“In 2026, we are determined to reduce inflation further and ensure that the benefits of reform reach every Nigerian household,” Tinubu said in his New Year message to the nation on Thursday.
Tinubu said inflation declined steadily in 2025 and “reached below 15 per cent, in line with our target”, adding that the government was determined to push it lower in the new year.
“We closed 2025 on a strong note. Despite the policies to fight inflation, Nigeria recorded a robust GDP growth each quarter, with annualised growth expected to exceed 4 per cent for the year,” he added.
“We maintained trade surpluses and achieved greater exchange rate stability. Inflation declined steadily and reached below 15 per cent, in line with our target.”
Supported by what he described as “sound monetary policy management”, the president said Nigeria’s foreign reserves stood at $45.4 billion as of December 29, 2025, providing “a substantial buffer against external shocks for the Naira”.
“As we enter 2026, our focus is on consolidating these gains and continuing to build a resilient, sustainable, inclusive, and growth-orientated economy,” he said.
Tinubu also cited improved performance in capital markets, saying the Nigerian Stock Exchange “outperformed its peers, posting a robust 48.12 per cent gain” and “consolidating its bullish run that began in the second half of 2023.”
He added that foreign direct investment increased sharply in the third quarter of 2025, rising to $720 million from $90 million in the preceding quarter, reflecting renewed investor confidence in Nigeria’s economic direction.
“Foreign direct investment is also responding positively. In the third quarter of 2025, FDI rose to $720 million, up from $90 million in the preceding quarter, reflecting renewed investor confidence in Nigeria’s economic direction, which global credit rating agencies, including Moody’s, Fitch, and Standard & Poor’s, have consistently affirmed and applauded.”
The president said moderating inflation and interest rates would create room for increased investment in infrastructure and human capital development.
“As inflation and interest rates moderate, we expect increased fiscal space for productive investment in infrastructure and human capital development,” Tinubu said.
He said the government was also confronting the problem of multiple taxation across all tiers of government and commended states that have adopted harmonised tax laws.
“We are also confronting the challenge of multiple taxation across all tiers of government. I commend states that have aligned with the national tax harmonisation agenda by adopting harmonised tax laws to reduce the excessive burden of taxes, levies, and fees on our people and on basic consumption.”
Tinubu added that 2026 would mark a decisive phase in implementing tax reforms to strengthen Nigeria’s fiscal base.
“The new year marks a critical phase in implementing our tax reforms, designed to build a fair, competitive, and robust fiscal foundation for Nigeria.
“By harmonising our tax system, we aim to raise revenue sustainably, address fiscal distortions and strengthen our capacity to finance infrastructure and social investments that will deliver shared prosperity.”
