Young Nigerian finance and legal professionals have questioned whether the Bola Tinubu administration’s economic reforms have translated into higher incomes for ordinary Nigerians, despite improvements in some macroeconomic indicators.
They expressed concerns during the youth edition of the Drinks and Mics podcast by Nairametrics, highlighting stagnant incomes, rising living costs and the limited evidence of economic gains reaching households.
The comments come amid the government’s efforts to demonstrate the benefits of its economic policies, including improvements in Nigeria’s external reserves and foreign exchange market.
Last week, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the country’s foreign exchange reserves provide a buffer against global economic shocks, helping to protect Nigerians from external pressures.
Cardoso said he was frequently asked how the CBN’s policy achievements translate into tangible benefits for ordinary Nigerians. He argued that stronger external reserves help shield the economy from external shocks, noting that Nigeria could have faced greater economic challenges without the buffer.
However, young professionals who spoke on the podcast questioned whether such macroeconomic gains were translating into improved earnings and living standards.
Nigerians not earning higher incomes
Asked by Oluwaseyi Akindutire, a Fixed Income Broker at Krosk Partners, whether Nigerians were earning higher incomes, Chidinma Okoli, Senior Principal, M&A and Investor Relations at Moniepoint, said she did not believe incomes were growing meaningfully.
She cited income reports published by PiggyVest and Zikoko, which she said highlighted the limited earnings of a significant proportion of Nigerians.
- “I’m not sure if you guys saw the income reports that was released by both Piggyvest and Zikoko. And apparently, I think about 40% of Nigerians still earn below N100,000. I was so shocked. And I think it’s even lower than some five years ago,” she said.
Okoli also expressed concern that younger Nigerians appeared to be earning less than older working-age groups, despite facing higher living costs.
- “Gen Zs are earning lower than millennials over like a five-year period, which is ridiculous. Because right now, as you said, there’s high prices and things. So to your point, I don’t really think income is growing,” she said.
Her comments underscore concerns that improvements in headline economic indicators may not necessarily translate into higher wages or stronger purchasing power for households.
Doubts over trickle-down effects
Tobiloba Yomi-Oshatimi, a Lawyer in Finance and Projects at Tope Adebayo LP, questioned whether the benefits of macroeconomic reforms would eventually reach ordinary Nigerians.
While acknowledging the argument that economic reforms can produce benefits across the economy over time, he expressed doubts about whether those gains consistently reach the wider population.
He cited the United Kingdom under former Prime Minister Margaret Thatcher, whose government implemented austerity measures, as an example in discussing the challenges associated with economic policies and their effects on citizens.
- “We don’t often see these things trickle down,” he said.
Yomi-Oshatimi also questioned whether policymakers could convincingly explain the benefits of economic reforms to ordinary Nigerians who were yet to experience meaningful improvements in their living conditions.
- “Is this something that you could easily still convince the average guy on the streets to say, OK, yes, this thing definitely trickle down?” he said.
His comments reflect a broader debate over the relationship between macroeconomic stabilisation and household welfare, particularly when reforms intended to improve economic conditions also create short-term cost pressures.
Three years down the line
Akindutire also questioned the length of time Nigerians have had to wait for the benefits of economic reforms to become noticeable.
He argued that the period since the reforms began had raised questions about when households could expect tangible improvements.
- “You know how economics is where they say it takes about six months before you start to feel it? We’ve done three years and there’s still no feeling,” he said.
The discussion highlights the challenge facing policymakers in demonstrating that economic stabilisation is translating into better incomes and living standards.
While stronger external reserves and other macroeconomic indicators can improve the economy’s resilience to external shocks, the young professionals argued that ordinary Nigerians also need to see tangible improvements in their earnings and purchasing power.