Nigeria’s Minister of Finance and Coordinating Minister of the Economy, HM Wale Edun, participated in the launch of the October 2024 edition of the Nigeria Development Update (NDU), a bi-annual report by the World Bank. Titled “Staying the Course: Progress Amid Pressing Challenges,” the report provides an in-depth analysis of Nigeria’s economic and policy issues, with a focus on development challenges and opportunities.
At the event in Abuja, HM Edun joined a high-level panel of experts to discuss the country’s economic outlook and the government’s ongoing efforts to create a more business-friendly environment. Responding to questions about fuel pricing policies and the government’s broader economic strategy, the Minister outlined key steps taken to stabilize the economy.
Economic Stabilization and Growth
HM Edun emphasized that the government had made “significant progress in stabilizing the economy,” citing improvements in GDP growth, a reduction in the budget deficit, and the Central Bank of Nigeria’s (CBN) return to orthodox monetary policies. These changes, he noted, signal that Nigeria has turned a critical corner, and the focus is now on maintaining stability while fostering growth.
A major component of this strategy is the National Agricultural Growth Scheme – Agro-Pocket intervention, aimed at boosting productivity in the agricultural sector. The Honourable Minister also pointed to increased investments in the oil and gas sector, with TotalEnergies and ExxonMobil taking on major projects that are expected to have a positive impact on Nigeria’s economy.
Manufacturing and Investor Confidence
Addressing the revitalization of Nigeria’s manufacturing sector, HM Edun underscored the importance of President Bola Tinubu’s initiatives to boost production through incentives like concessional interest rates. These efforts are designed to stimulate growth in manufacturing, increase job creation, and further drive economic recovery.
The Minister also highlighted a growing sense of confidence from international investors, mentioning a recent visit from JPMorgan as an encouraging sign. This visit, he said, signals renewed international interest in Nigeria’s economic prospects, particularly in sectors like finance, manufacturing, and energy.
Fuel Pricing Reforms
One of the most critical issues addressed at the NDU launch was the government’s fuel pricing reforms. For the first time in 40 years, Nigeria now operates on market-based pricing for Premium Motor Spirit (PMS). HM Edun explained that this landmark policy change allows the government to free up resources previously spent on fuel subsidies, which can now be redirected toward crucial investments in education, housing, and infrastructure.
He noted that this reform could be transformative, allowing Nigeria to reallocate funds to projects that directly benefit the population, improve living standards, and reduce poverty.
Future Plans: Housing and Job Creation
Looking ahead, HM Edun outlined plans to address Nigeria’s housing challenges through long-term mortgage solutions. These initiatives are expected to drive economic growth, create jobs, and provide affordable housing for Nigerians. The Minister emphasized that housing development, alongside other critical infrastructure projects, is a key component of the government’s strategy to reduce poverty and improve living conditions.
The launch of the October 2024 NDU marked a moment of reflection on Nigeria’s recent economic challenges, while providing a roadmap for continued progress. With efforts in place to stabilize the economy and attract investments, HM Wale Edun expressed confidence that Nigeria is on the path to sustainable growth.
