The Federal Government’s ongoing economic reforms are yielding positive results, according to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. Speaking on a television program monitored from Lagos, Edun expressed confidence that these reforms will soon return the economy to a path of sustainable growth and significantly reduce inflation.
Edun highlighted key achievements of the reforms, including the gradual restoration of both domestic and foreign investor confidence. He noted that the government has repaid a N7.3 trillion overdraft from the Central Bank of Nigeria (CBN) under the “Ways and Means” policy, aligning with its fiscal discipline priorities.
The minister also announced that a $2.25 billion low-interest facility from the World Bank will be drawn down in the next two weeks, alongside an anticipated $7 billion in foreign capital inflows into the oil and gas sector.
Regarding inflation and naira stability, Edun stated that increased foreign capital inflows have boosted foreign exchange liquidity. He praised President Bola Tinubu for achieving relative economic stability in his first year and for initiating measures to stimulate growth, particularly in agriculture.
Edun acknowledged that initial stabilization measures led to inflation spikes in fuel costs, exchange rates, and interest rates. However, he emphasized that the CBN’s anti-inflation measures are starting to show positive effects, despite high interest rates posing challenges for business investments.
“The economy is growing. People are finding sources of funding, including the government contributing to public-private sector infrastructure projects, which is creating jobs and fostering economic growth,” Edun said.
Despite inflation remaining high at 33.69 percent and food inflation at 40.5 percent, Edun noted a month-on-month decline to 2.3 percent from nearly three percent. He pointed to the payment of N75,000 to households through social intervention programs as a measure to cushion the initial economic reform impacts.
Expressing optimism about future food prices and availability, Edun mentioned ongoing efforts by a presidential panel on social investment programs to ensure robust and transparent direct payments to citizens and improve food availability and nutrition.
Edun also highlighted the government’s initiatives to improve the investment climate in the oil and gas sector, which are expected to unlock $7 billion in foreign direct investment. Additionally, investments in agriculture are projected to increase output and reduce food inflation. He noted that the removal of petrol subsidies has positively impacted the naira-dollar exchange rate.
In summary, Edun assured that the government’s strategic reforms are positioning Nigeria for long-term economic stability and growth.
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