Adebajo: Economy at Inflection Point, Govt Must Turn Reforms to GrowthNume Ekeghe, Dike Onwuamaeze and Kayode Tokede

Chief Executive of CFG Advisory, Tilewa Adebajo has called on the federal government to convert reform gains into a productivity-led economy capable of achieving 8–10 per cent gross domestic products (GDP) growth and lifting millions of Nigerians out of multidimensional poverty.

Speaking during the Finance Correspondents Association of Nigeria (FICAN) 2026 Economic Outlook in Lagos, Adebajo urged immediate fiscal and structural reforms, warning that Nigeria’s current debt trajectory is unsustainable. 

He said: “The urgency of now is clear. The economy is at a point of reflection. Government must convert reform gains into a productivity-led economy capable of growing at 8–10 per cent and lifting millions out of multidimensional poverty. Fiscal discipline remains the key challenge. Budgets are still too large relative to income, and deficits remain high. If we get the policies right, sustain reforms, and show courage, Nigeria can deliver inclusive and sustainable growth.”

He noted that the proposed N15.52 trillion allocation for debt service in the 2026 budget exceeds the combined spending on defence, security, education, and health, which totals N14.97 trillion.

“This is clearly unsustainable. What is most worrying is that virtually all the gains from fuel subsidy removal are now being channeled into debt service. The 2026 budget needs to be urgently revised downwards if it is to be realistically implemented,” he said.

Adebajo warned that excessive fiscal spending, a massive deficit and the failure of social intervention programmes have left Nigerian households and businesses under severe strain, with the economy grappling with stagflation. According to him, the reform agenda risks losing public support if its human impact is not urgently addressed. “Nigerian households and firms are despondent, 

On monetary policy, Adebajo called on the Central Bank of Nigeria (CBN) to consider cutting interest rates to stimulate growth, expressing confidence that inflation could moderate significantly in the near term.

“Official inflation should reach single digits by the end of the second quarter” he said adding that “government must articulate and implement deliberate disinflation and growth policies, targeting between eight and 10 per cent GDP growth to support productivity, employment, exchange rate stability and investment.”