The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, announced on Thursday that President Bola Tinubu’s bold reforms are starting to show positive results for the economy.
He stated that the economy is on the right track for growth and is poised for success.
Edun highlighted that the Federal Government plans to create a public dashboard to monitor social investment interventions.
He also noted that the government has been diligently servicing its debt obligations without further recourse to Ways and Means, having paid N7.3 trillion of the total borrowed from the Central Bank of Nigeria (CBN).
During a media briefing in Abuja on the 2024 half-year economic review titled “Economic Recovery and Growth, Progress and Prospects,” Edun said, “A dashboard of transfers is being created for the social investment programme.
We are reconfiguring the programme, especially the direct payments to beneficiaries, so that we can identify the recipients, the amount received, and the timing, and within the constraints of privacy laws, make this information available to the public.”
The Minister emphasized that the administration is committed to reducing food prices. “The primary concern for Mr. President and his administration is lowering food prices. If they increase, the commitment and urgency to address it wouldn’t change,” he said.
Edun shared positive news about the economy’s growth, despite the widespread poverty and hardships. His statements come just days before a planned protest by Nigerians over economic difficulties.
Inflation in Nigeria reached 33.25 percent in June, with food inflation hitting an all-time high of 40.8 percent.
These rises followed economic reforms, including the partial removal of petrol subsidies and a managed float of the naira, which led to more than a 100 percent depreciation of the currency since the introduction of the ‘Willing buyer, willing seller’ FX model last year.
Edun asserted that Nigeria is now in a favorable position to attract massive investments due to the government’s efforts. “We can already see macroeconomic stability with a stable exchange rate, reducing budget deficits, positive trade balance, and increased investment flows.
The federal government’s finances have been reconfigured to achieve increased revenue across the board,” he said.
He also mentioned that the economy grew faster in the first quarter of 2024 compared to 2023, marking the second fastest first-quarter growth in the last six years. This growth was broad-based, with agriculture, industries, and services all contributing positively.
Addressing inflation, Edun noted that while Nigeria still experiences high inflation, the pace of annual growth is slowing. “There was a slight uptick in June, possibly due to the Eid al-Adha festival, but the overall trend is towards reducing inflation,” he said.
He added that several government initiatives are being implemented to increase the food supply, which constitutes 50 percent of the consumer price index.
The Minister highlighted interventions to reduce inflation, such as strategic import programs for agricultural raw materials and a pivot towards CNG-fueled vehicles for mass transit, which are cheaper and contribute to cleaner air and climate action goals.
On the monetary side, Edun praised the proactive adjustments by the CBN to the monetary policy rate to address inflation, which is beginning to have the desired effect.
He noted that the narrowing gap between inflation and interest rates makes the naira more viable as a store of value, reducing the incentive to switch to non-naira investments.
Edun stated that the foreign exchange rate has stabilized, and the transition to a willing buyer-willing seller model has improved liquidity and availability of foreign exchange.
“The investment climate has improved, attracting both domestic and foreign investments, which leads to increased productivity, job creation, and poverty reduction,” he said.
He reported positive trends in financial markets, with increased foreign portfolio investment and improved yields.
Government revenue has more than doubled in the first half of 2024 compared to the same period in 2023, driven by technology and process improvements in government finances.
Finally, Edun announced that the Federal Government will soon float a $500 million Eurobond to encourage Nigerians in the diaspora to invest in the country, reducing reliance on foreign borrowing from multilateral development agencies.
