Says It Is Key to Nigeria’s Rising Investment Profile
By Enam Obiosio
In a ringing endorsement of Nigeria’s ongoing economic transformation, the British High Commissioner to Nigeria, Mr. Richard Montgomery, has applauded President Bola Ahmed Tinubu’s bold reform agenda, asserting that it is already generating significant economic dividends and redefining Nigeria’s standing as an attractive destination for global investment.
Addressing journalists at a recent media briefing in Abuja, Mr. Montgomery described the economic reforms initiated by the Tinubu administration as “big and bold,” stating that while they come with short-term challenges, the long-term prospects are increasingly promising.
“I have been very public previously about commending the big and bold economic reforms being taken by His Excellency, President Bola Ahmed Tinubu,” the British envoy declared. “We all know about the abolition of the fuel subsidy, we all know about the unification of the exchange rate system, and my headline this morning is that these economic reforms are paying off. These reforms are now making Nigeria more investible.”
Early Gains from Structural Adjustments
Since assuming office in May 2023, President Tinubu has pursued sweeping structural adjustments aimed at correcting long-standing economic distortions. Among the most consequential actions has been the removal of the decades-old fuel subsidy, a move that has freed up significant public funds for redeployment into infrastructure and social services. Equally transformative has been the unification of Nigeria’s multiple exchange rates—a reform welcomed by international investors who have long viewed the country’s currency regime as opaque and restrictive.
Mr. Montgomery noted that these policy shifts, while difficult, are beginning to reshape the macroeconomic landscape. “Foreign exchange reserves are up—significantly up,” he stated. “So that makes Nigeria less risky. There’s been a very big increase in government revenue collection, not by raising tax bands, but through better tax administration and management.”
According to him, improved coordination among government ministries, departments, and agencies (MDAs) has led to an almost 90 percent rise in revenue generation. This improvement, he noted, has enabled the federal government to double allocations to state governments, potentially spurring critical investment in local infrastructure and public services.
“That increase in revenue means reductions in fiscal deficit,” Mr. Montgomery explained. “It means the combination of increased revenue and the abolition of the fuel subsidy have doubled federal allocations to the states, enabling more investments in infrastructure as well as public services.”
International Confidence Anchored in Data
The British diplomat’s optimism is further backed by data from the World Bank’s May 2025 Nigeria Development Update (NDU), which affirms Nigeria’s economic rebound. The report underscores improvements in the country’s macroeconomic indicators, including a more stable naira and rising investor confidence.
The country’s growth trajectory also appears to be shifting upward. “Between 2015 and 2019, the growth rate in Nigeria was an average of two percent,” Montgomery said. “It is now, in the last 12 months, at least about 3.5 percent. But most positively, in the last quarter for which we have data, it is up to 4.6 percent. So there is a real uptick in growth.”
He highlighted the recent rise in the Purchasing Managers’ Index (PMI) as further evidence of improving business sentiment, indicating that many companies are beginning to expand and explore new investment opportunities in Nigeria.
Short-Term Pain for Long-Term Gain
While celebrating the gains, Montgomery acknowledged the tough economic realities still facing many Nigerians. Inflation, he admitted, remains a key concern, with the current rate hovering in the mid-20s—a level that continues to strain household incomes.
“I realise that some of these reforms for ordinary people are painful. Inflation is still high… And it is going to take time to bring that rate down,” he said. However, he expressed confidence that inflationary pressures would ease over time as the structural reforms continue to take root.
The High Commissioner’s remarks reflect growing international consensus that Nigeria’s economic reforms, if sustained and carefully managed, could position the country as a regional economic powerhouse. “We can see very good prospects for that [inflation] rate coming down in the coming months and years,” he added.
In reaffirming the UK’s support for Nigeria’s reform agenda, Mr. Montgomery underscored the strategic importance of sustained economic discipline, transparency, and investment in human capital. He stressed that while recovery may be gradual, the international investment community is beginning to see Nigeria through a new, more optimistic lens.
“Nigeria is now more investible,” he said emphatically.
As the President Tinubu’s administration marks its second year in office, such international validation offers a much-needed boost to its economic narrative.
