Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has announced that measures are being put in place to stabilise the Economy and enhance production in the real sector through an economic stimulus package. During an interview on Channels Television, the minister explained that President Bola Ahmed Tinubu will be revealing a new package soon after discussions with government officials, the Manufacturing Association of Nigeria (MAN), and other stakeholders. The package is seen as the government’s answer to the departure of numerous multinational manufacturers from Nigeria due to unfavourable economic conditions.
The minister acknowledged the challenges Nigerians have faced due to the harsh economic conditions over the past year. He recognised the impact of reform policies on the population, specifically citing a concerning 41% increase in food inflation. However, he remains optimistic that the upcoming rainy and dry season harvests will help alleviate this issue. He stated that Tinubu successfully brought stability to the economy within the first year of his leadership. He also mentioned the importance of ramping up intervention measures in Agriculture and other areas to ensure continued progress.
Several intervention schemes have been carried out by the government.
He stated that the economic reforms were necessary to prevent the country from plunging into financial ruin. The minister explained that the government has been carrying out various intervention schemes, such as providing ₦75,000 in conditional cash transfers to the most disadvantaged individuals. Regarding macroeconomic indicators, which are on a downward trend, Edun pointed out that they are a direct result of the government’s actions. Despite the adverse effects of the reforms, Edun believes that the economy is showing signs of growth.
Also, he mentioned that although the economy is progressing positively, it is crucial to remain on the same path. In a subtle admission of Nigeria’s current food Insecurity dilemma, the minister noted that this issue is not unique to the country. He stated that food insecurity is a worldwide issue, affecting approximately 30 percent of the global population. Food insecurity is a prevalent issue on a global scale, affecting many. Nigeria is one of the countries where this problem is particularly concerning, and it is an area of focus for them.
Food security, affordable transportation, and employment are essential.
Nigerians are concentrating on three priorities: food security, affordable transportation, and employment opportunities. When asked about the timing of President Tinubu’s decision to remove subsidies, Edun emphasised that it was both essential and overdue. He expressed confidence in his stance by pointing out that the federal government has completely overhauled its income through reform efforts that have successfully eliminated losses. He also commented on the government’s reliance on advice from the World Bank and IMF, noting that many Nigerians feel that these institutions do not adequately assist in the country’s development.
Speaking further, the minister expressed Nigeria’s lack of alignment with their recommendations, yet acknowledged their ongoing provision of concessional funding unavailable elsewhere. Speaking about fuel subsidies, the minister evaded a direct answer. Instead, he discussed the increase in oil production from 1.2 to 1.7 million barrels per day during the administration’s tenure. He observed that as the country imports more fuel, the availability of foreign exchange increases, leading to a decrease in fuel prices.
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Lastly, he highlighted the successful results of reform policies in attracting foreign direct investment. Specifically, the oil and gas sector was projected to receive $7 billion in foreign investments this year. Additionally, the Tinubu administration managed to pay off a significant debt of ₦7.3 trillion through Ways and Means. About the ongoing Minimum Wage dispute, the minister highlighted that determining a minimum wage involves not only the federal government but also states, the organised private sector, and other stakeholders.