Federal Government Considers Law to Protect Economic Reforms From Reversal

The Federal Government is considering a law to prevent future administrations from reversing major economic reforms, Finance Minister Taiwo Oyedele has said.

Oyedele disclosed this Monday at the 32nd Nigerian Economic Summit in Abuja, where he presented a draft Nigerian Economic Policy Framework aimed at promoting consistent policies and boosting investment.

“We now need to lock it in, in institutions, in law, as well as policy framework, so that it can be enduring,” he said.

The proposed framework would guide government decisions on taxation, tariffs, subsidies, investment and industrial development.

It is intended to prevent sudden policy changes that could discourage businesses and weaken investor confidence.

Oyedele said the government was seeking public input on whether the framework should become law and how institutions could be strengthened to ensure future administrations follow agreed economic principles.

He also ruled out a return to petrol subsidies, which President Bola Tinubu’s administration removed in 2023.

“Any ideas of returning it, we should forget about it,” the minister said, arguing that government should focus on raising household incomes rather than keeping prices artificially low.

Oyedele described unpredictable government decisions as a burden on businesses, saying, “Policy uncertainty is an invisible tax on enterprise.

"And unlike most taxes, it generates no revenue for government; it only destroys value and discourages investment.”

The draft framework proposes mandatory policy impact assessments before major economic interventions.

These would require officials to explain the problems a policy seeks to solve, the evidence behind it, who benefits and who bears the costs.

It also proposes an annual National Economic Scorecard to track changes in real wages, productive employment and poverty, rather than relying mainly on economic growth figures.

Oyedele said the draft would remain open for public consultation until Nov. 27 before being sent to the Federal Executive Council for approval and the National Economic Council for endorsement.

He said the goal was to establish a lasting economic direction that would encourage investment, improve productivity and create jobs across political administrations.