The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun on Tuesday at the 30th Nigeria Economic Summit, presented a roadmap towards ensuring Nigeria’s macro-economic stability and growth under President Bola Ahmed Tinubu’s Administration.
The summit, themed: Collaborative Action for Growth, Competitiveness, and Stability, gathered prominent leaders from public and private sectors to explore the nation’s pressing economic challenges and lay a foundation for sustainable development.
The Urgency of Economic Reforms
In a key panel session titled Fiscal Reforms for a More Secure Future, the
Minister stressed the necessity of immediate and comprehensive economic reforms.
He explained that Nigeria had been dealing with multiple fiscal challenges, including declining oil revenues, foreign exchange shortages, and growing budget deficits, which made the existing economic model untenable.
HM Edun added that the administration’s fiscal and monetary reforms were essential to prevent further economic deterioration, noting that these reforms aim to create a stable foundation for future growth and competitiveness by addressing inefficiencies and restructuring key financial policies.
Redirecting Fuel Subsidy Savings
A major highlight was the allocation of savings from the removal of fuel subsidies. HM Edun clarified that these savings are being strategically redirected to vital sectors of the economy as part of Nigeria’s Accelerated Actualization and Stabilization Plan, developed through public-private collaboration.
The Minister informed that this plan is aimed at reducing the costs of production for industries and corporations while supporting social intervention programs for vulnerable populations. He stressed the importance of transparent communication to ensure Nigerians understand how the reallocated funds will benefit them directly.
Enhancing Efficiency in Government Spending
HM Edun also elaborated on how the government has dramatically improved its revenue collection through technological advancements. By implementing data-driven systems, the government can now monitor and automatically collect revenues in real-time from corporations, reducing leakages and enhancing accountability. This, he said also streamlined government spending processes, where Ministries directly remit payments to beneficiaries, adding that it has also increased efficiency and transparency, contributing to a more fiscally responsible government.
Managing the Impact of Reforms
The Minister acknowledged that while some of the reforms have led to short-term challenges, such as rising costs of living, the government is working to mitigate these impacts through targeted interventions. Initiatives include direct transfers to the most vulnerable, provision of fertilizers to farmers, student loans, and credit programmes for workers. He emphasized that the burden of fiscal adjustments is designed to fall more heavily on wealthier Nigerians, thereby protecting low-income households.
Sustaining Reforms and Fostering Growth
Looking beyond macro-economic stabilization, Edun reaffirmed that Nigeria is beginning to see early positive results from these reforms. He noted a reduction in the budget deficit relative to GDP and a decreased debt service-to-revenue ratio as signs of progress. However, in a more focused direction, the Minister underscored that rather than celebrating the issuance of domestic dollar bonds, the government is prioritizing fighting inflation, increasing productivity, and maintaining a positive external account balance as key indicators of sustainable growth.
Future Initiatives: Agriculture and Housing
As Nigeria moves forward, the Minister outlined plans to pivot from macro-economic reforms to sectors that directly affect Nigerians’ daily lives.
In agriculture, he said, efforts to transform Nigeria into a leading food producer will help curb inflation and reduce food prices. He also announced the government’s plans to introduce long-term mortgages at affordable interest rates to address the housing needs of the population, providing a path towards improved living conditions and economic stability for citizens.
Thus, HM Edun’s participation at the 30th Nigeria Economic Summit reaffirmed the government’s commitment to long-term economic reforms aimed at stabilizing and growing the Nigerian economy. The reforms, though challenging, are setting the stage for a more prosperous and competitive Nigeria, where future economic policies will emphasize growth in trade, agriculture, and the improvement of living standards across the country.
As Nigeria embarks on this transformative journey, Minister Edun’s vision for a prosperous and competitive nation is clear, especially with a focus on fiscal reforms, efficient government spending, and targeted interventions, Nigeria is poised to overcome its economic challenges and emerge stronger than ever, a leading economy in Africa.
Signed
Mohammed Manga, FCAI
Director, Information and Public Relations
