Tinubu’s Economic Reforms Squeeze as Dangote Applauds Naira, Forex Policies

By SpringnewsNG Media Limited August 6,2025

President Bola Ahmed Tinubu’s sweeping economic reforms are drawing mixed reactions across Nigeria. While Aliko Dangote, Africa’s richest man and Chairman of the Dangote Group, has praised the government’s foreign exchange and energy market reforms as bold and transformative, many small-scale businesses say the policies are crushing their operations and driving costs to unprecedented levels.

Dangote Applauds Policy Shift

Dangote commended the administration’s “Naira-for-Crude” initiative and “Nigeria First” policy, describing them as key steps toward stabilizing the economy. According to him, the reforms have brought a measure of stability to the naira-dollar exchange rate, improving market predictability for investors.

“We are also beginning to see some stability in the naira-to-dollar exchange rate, which has a positive impact,” Dangote stated.
“For those of us in business, this is a welcome development because it allows us to plan more effectively.”

Businesses Struggle with Soaring Costs

Despite optimism from major investors, small businesses, the backbone of Nigeria’s economy, are facing unprecedented operational challenges.

The Central Bank of Nigeria’s June 2025 Business Expectations Survey revealed that high interest rates are now the most severe business constraint, scoring 75.6 on the index—overtaking insecurity (75.2) and poor electricity supply (74.3). Commercial lending rates now hover around 35%, choking access to credit for small businesses.

Rising inflation has further worsened the situation. Medicine prices have skyrocketed, with some drugs rising over 400% in a year. A pack of malaria drugs that sold for N500 in April 2023 now costs N6,000, while a box of Panadol jumped from N1,000 to N5,000. Basic food commodities have also surged:

• 50kg bag of rice – N85,000
• 50kg beans – N150,000
• Crate of eggs – N8,000
• 20-pack bottled water – N4,000

Small Businesses Voice Frustration

Across sectors, business owners are grappling with rising energy costs and unstable food prices.

Emmanuel Obiorah, President of the Premium Bread Makers Association of Nigeria, said that even with temporary waivers on wheat and flour imports, energy costs have wiped out any gains.

“Energy costs for some of us in Band A went from N1 million to N15 million in a single month. We rely heavily on diesel because electricity supply remains poor,” he said.

Restaurant owners are also passing rising costs to consumers. Oluchi Mgbemena, who runs a small restaurant in Kubwa, Abuja, said food price volatility has forced her to increase the price of a plate of food to N2,500, driving away low-income customers.

Inflation and Policy Gaps

Food inflation in Nigeria rose by 21.97% year-on-year in June 2025, driven by insecurity in farming regions and the effect of foreign exchange liberalisation.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the boldness of Tinubu’s reforms but warned that SMEs are bearing the brunt of the transitional pain.

Chinyere Almona, LCCI Director-General, called for stronger policy coordination:
“Monetary authorities are targeting inflation while fiscal policy continues to expand through borrowing and recurrent spending. This divergence has weakened the impact of interventions.”

She recommended targeted support for SMEs, improved infrastructure, and stronger social safety nets to cushion the harsh economic realities, while sustaining forex and fiscal reforms to stabilize the economy in the long term.