A prominent policy think-tank has compared Nigeria’s recent economic shift to the American “Progressive Era,” claiming the country is finally breaking the grip of a “corrupt oligarchy” that has stifled growth for decades. In a detailed policy statement, the Independent Media and Policy Initiative (IMPI) argued that President Bola Tinubu’s administration is successfully using “economic progressivism” to dismantle a system where a small elite previously controlled the nation’s vast oil wealth.The group suggested that before May 2023, Nigeria mirrored the US “Gilded Age” of the late 19th century—a period of glittering technological progress that masked deep-seated corruption and inequality.
Breaking the ‘Feeding Bottle’
According to the IMPI, Nigeria’s “pre-reform” landscape was defined by a patronage system that benefited political and business moguls while leaving over 60% of the population in multidimensional poverty.”A significant portion of the oligarchy benefited from the fuel subsidy system, described as a ‘feeding bottle’ for a select few,” the report stated. It further highlighted how multiple exchange rate windows allowed “FX subsidy merchants” to drain government finances at the expense of the public.
Economic indicators show ‘turnaround’
The group pointed to a series of data points from early 2026 to support its claim that the economy has moved “out of the woods”:
Currency Stability: The Naira has been rated among the world’s best-performing currencies in 2026, with the gap between official and black-market rates shrinking to just 2%.
Inflation Drop: Food inflation has reportedly fallen to single digits (8.89%) for the first time in over a decade.
Stock Market Rally: Nigerian stocks delivered the world’s second-best dollar returns in early 2026, recovering $21 billion in market value.
Revenue Surge: Federally shared revenue increased by 30% in 2025, driven by the removal of subsidies and tax reforms.
Tax relief and social protection
A key pillar of this “progressive” agenda, the IMPI noted, is the Nigeria Tax Act 2025. The law introduced significant relief for ordinary citizens, including:VAT Exemptions: Rent, land, and building purchases are now fully VAT-free to reduce housing costs.
Small Business Support: Zero percent companies income tax for small firms.
Education Investment: A new “Consolidated Academic Tools Allowance” for university lecturers, designed to boost research and end long-standing industrial disputes.
The ‘Multiplier Effect’
The IMPI concluded that the administration’s focus on redistributive spending and infrastructure is creating a “chain reaction” of consumption and income.”President Tinubu has accomplished an impressive turnaround as a first step to exponentially grow the national economy,” the statement said, suggesting that the “decimation of public values” seen in previous years is finally being reversed through regulation and social protection.
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