Nigeria’s Economy on Path to Stability, Says Finance Minister Edun
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has reassured Nigerians of the country’s economic recovery, citing key fiscal and structural improvements that have positioned the nation on a path to stability and growth.
Speaking in a virtual media briefing, Edun provided a comprehensive update on the economy’s trajectory, highlighting efforts in revenue generation, private sector-driven investments, and strategies to enhance Nigeria’s fiscal resilience.
Economic Stabilisation and Growth
According to Edun, Nigeria has successfully averted a fiscal crisis, with the economy recording a 3.84% GDP growth in the fourth quarter of 2024, edging close to the annual target of 3.4%. Inflation has begun to ease, revenue generation has increased, and the exchange rate is showing signs of stability.
He noted a 20% rise in government revenue last year, along with a reduced budget deficit and a decline in debt servicing costs as a percentage of revenue. To sustain this progress, the government aims to boost the tax-to-GDP ratio to 18% within the next 18 months through digitisation, improved tax compliance, and a broader tax base.
Private Sector as a Catalyst for Growth
Emphasising the role of private sector investment, Edun announced a forthcoming ₦1 trillion low-interest mortgage fund to boost the housing sector. He also disclosed that pension funds and institutional investors would finance 5,000 kilometres of roads under the Highways Management and Development Initiative.
Oil, Trade, and External Strategies
While reaffirming the government’s commitment to economic diversification, the Minister acknowledged the continued importance of oil revenues. Plans are in place to expand domestic refining capacity to 1.2 million barrels per day and create a stable, investor-friendly operating environment for the oil sector. He urged exporters to explore domestic and regional markets to mitigate the impact of global trade disruptions, including recent tariff policies from the United States.
Youth Empowerment and Innovation
With Nigeria’s youth population growing rapidly, Edun highlighted the need for targeted economic policies. He referenced new funding mechanisms to support young entrepreneurs and noted the launch of a national sports empowerment programme by President Tinubu in Ogun State.
Call for Strategic Partnerships
The Minister reiterated the government’s commitment to attracting equity investment, promoting privatisation, and fostering strategic collaborations to sustain economic growth.
“As we navigate this transformative economic journey, Nigeria is positioned for sustainable and inclusive development,” Edun said. “With sound fiscal management and increased private sector participation, the country is set to unlock its full economic potential.”
His remarks reinforce the government’s dedication to creating a business-friendly environment and ensuring long-term economic prosperity for all Nigerians.
