How Tinubu’s reforms are driving strong corporate sector performance – Presidency

By Ayorinde Oluokun

The presidency has explained how several key economic reforms implemented by President Bola Ahmed Tinubu’s Administration since mid-2023 are driving strong performance being recorded across Nigeria’s corporate sector.

This, according to the presidency include the strong financial performance recorded by many of the companies listed on the Nigerian Exchange in the first half of 2026.

Tinubu had on assumption of office in May 2023 introduced key economic reform, the two prominent of which are the removal of fuel subsidy and unification of foreign exchange.

The presidency, in the statement signed by presidential spokesperson, Bayo Onanuga on Wednesday said the unification of the foreign exchange has been pivotal in the strong performance of corporate organisations operating in different sector of the economy.

“By establishing a single, market-determined exchange rate, the reform improved price discovery and enabled companies with substantial foreign currency exposure to more accurately reflect the value of their dollar-denominated revenues in their financial statements,” Onanuga said in the statement.

According to the statement, export-oriented and foreign exchange-earning businesses such as Aradel Holdings and Seplat Energy, whose revenues are largely linked to international oil prices and settled in foreign currency have benefitted from the policy.

The statement also indicated that Tinubu administration’s commitment to strengthening investor confidence in the energy sector was further demonstrated through the timely approval of several landmark upstream transactions.

The presidency identified the most notable of such approvals to include the Renaissance Africa Energy consortium’s acquisition of Shell Petroleum Development Company (SPDC) assets.

Aradel Holdings is a member of the consortium that acquired the assets

The presidency also listed the approval of Seplat Energy’s acquisition of the assets of Mobil Producing Nigeria Unlimited (MPNU) as another of such landmark upstream transactions.

“These strategic approvals significantly expanded the reserve base, production capacity, and long-term growth prospects of both companies while removing regulatory uncertainty surrounding two of the largest transactions in Nigeria’s upstream oil and gas industry.

“By facilitating the transfer of mature onshore assets to well-capitalised indigenous operators, the administration strengthened investor confidence, accelerated domestic participation in the petroleum sector, and positioned both Aradel and Seplat to capture higher production volumes, stronger revenues, and improved earnings before tax,” the presidency said of the effect of timely approval of the upstream transactions.

The presidency also listed President Tinubu’s approval of Naira payment for crude as another reform of his administration that has been driving growth in the downstream sector of the economy.

The presidency noted that the policy that some other African countries have adopted has supported local refining capacity, such that Dangote Refinery has become a net exporter of PMS and Aviation fuel.

The presidency also noted that manufacturing and industrial companies have also benefited from improved access to foreign exchange and a more predictable currency market.

“Firms such as Dangote Cement, BUA Cement, and HBM (formerly known as Lafarge Africa) have been able to plan production, procure imported inputs more efficiently, and allocate capital with greater certainty under a unified exchange rate framework. Improved foreign exchange availability has reduced operational bottlenecks, strengthened supply chain planning, and supported higher production volumes, contributing to stronger revenue growth and improved profitability,” the presidency said of the gains of Tinubu’s forex reforms to the operators in the manufacturing sector.

Also, the presidency said the removal of the petrol subsidy by President Tinubu has significantly strengthened the government’s fiscal position.

“The resulting improvement in public finances has increased fiscal capacity for infrastructure investment, enhanced revenue mobilisation, and reinforced broader macroeconomic stability. These developments have created a more supportive operating environment for large-scale businesses by improving investor confidence and strengthening expectations of long-term economic sustainability,” the presidency said in the statement.

The preidency further added in the statement that tighter monetary management and ongoing financial sector reforms have contributed to a more stable macroeconomic environment.

It also added that greater exchange rate stability, moderating inflationary pressures, and improving liquidity conditions have enhanced business confidence, allowing companies to make longer-term investment decisions with greater certainty.

The presidency also added that while banking sector recapitalisation has strengthened the financial system’s capacity to support large-scale corporate financing, ongoing tax reforms aimed at simplifying administration and broadening the revenue base have improved the overall business climate and reduced structural inefficiencies.

“Taken together, these reforms have enhanced the operating environment for capital-intensive and export-oriented firms by improving market efficiency, strengthening macroeconomic stability, increasing investor confidence, and facilitating more efficient capital allocation.

“The resulting improvements in operational efficiency, financial transparency, and investment planning provide a clear economic explanation for the substantial increases in both revenue and earnings before tax recorded by many of the companies listed on the Nigerian Exchange.

“Rather than reflecting isolated firm-level developments, these results illustrate how comprehensive structural reforms can translate into measurable improvements in corporate financial performance through stronger market fundamentals and a more predictable business environment,” Onanuga concluded in the statement.