FG declares Nigeria’s economy has ‘turned the corner’

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has assured Nigerians that the nation’s economy is on a steady path to recovery.

In an opinion piece released on Sunday, titled: “Nigeria Turning Towards Prosperity,” Edun expressed optimism that the most difficult phase of the country’s economic journey was over.

He said: “Despite some historical shortfalls and present-day challenges, I believe the most difficult phase of our economic journey is behind us. Nigeria has turned a decisive corner.

“The road ahead will demand hard work and discipline, but we are firmly on the right path.”

According to him, when President Bola Tinubu assumed office in 2023, the economy was on the brink of fiscal collapse, plagued by sluggish growth, surging inflation, and distortions from the fuel subsidy and multiple exchange rate regimes.

“The President’s mandate was clear — dismantle those market distortions, reward productivity, and create an environment where private investment can thrive,” Edun stated.

The minister noted that two years into the reforms, macroeconomic indicators have shown improvement.

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He stressed that the Gross Domestic Product (GDP) rose by 4.23 percent in the second quarter of 2025, while inflation moderated to 18.02 percent after six months of steady decline.

The exchange rate has stabilised, narrowing the gap between official and parallel markets to about one per cent, from nearly 70 percent previously.

He added that foreign reserves had risen to over $43 billion, the highest since 2019 — progress he described as “the foundation for inclusive growth that benefits every Nigerian.”

Edun said the government was implementing programmes to boost agricultural productivity and protect farmers’ incomes, adding that 8.1 million households had received direct cash transfers as part of social support initiatives.

Acknowledging ongoing fiscal challenges, the minister noted that debt service costs remained high, consuming a large share of government revenues, while Nigeria’s revenue-to-GDP ratio of around 10 per cent was still among the lowest in Africa.

He said the Nigeria Tax Act, signed into law on June 26, 2025, would help broaden the tax base, simplify compliance, and curb evasion.

“The reforms introduce a more progressive tax system that protects lower-income earners while adjusting rates for higher-income groups,” he explained.

Edun added that initiatives such as the Revenue Optimisation and Assurance Programme would strengthen public finances and support greater investment in infrastructure and human capital.

The minister said the government was offering new incentives to revive the oil and gas sector, noting that crude oil production had rebounded to 1.68 million barrels per day, including condensates, due to improved security and reduced theft.

He also highlighted large-scale infrastructure projects such as the Ajaokuta–Kaduna–Kano gas pipeline and the Project Bridge 90,000 km fibre expansion, describing them as “the groundwork for industrialisation and nationwide connectivity.”

By: Babajide Okeowo

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