The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has assured Nigerians that the worst phase of the country’s economic hardship is over, saying the economy has “turned the corner” after two years of tough reforms.
Edun stated this in an opinion article released yesterday, titled “Nigeria Turning Towards Prosperity.”
He said recent data show that the economy is stabilising after what he described as “the most difficult phase” in Nigeria’s economic journey.
“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,” Edun said. “The road ahead will demand hard work and discipline, but we are firmly on the right path.”
Economy stabilising after reforms
The minister recalled that when President Bola Ahmed Tinubu took office in 2023, the economy was near fiscal collapse, with slowing growth, rising inflation, and market distortions created by fuel subsidies and multiple exchange rates.
He said the president’s early decisions to end the fuel subsidy and unify the exchange rate were key to restoring stability.
According to him, the impact of these reforms is now visible.
GDP grew by 4.23 per cent in the second quarter of 2025, the highest in four years, while inflation eased to 18.02 per cent after six straight months of decline.
He added that the naira has strengthened in recent weeks, trading at ₦1,457.96/$1 as of October 24, 2025, compared to ₦1,620/$1 in May. The gap between official and parallel market rates has narrowed to about one per cent.
Foreign reserves, he said, have also risen above $43 billion, the highest since 2019.
“These are more than just numbers; they are the foundation for building inclusive growth that benefits every Nigerian,” Edun said.
Relief from food inflation
Acknowledging the high cost of living, the minister said government measures are beginning to ease food inflation.
“Food inflation has been our heaviest burden,” he said. “However, targeted measures are beginning to ease the pressure. A bag of rice that cost about ₦120,000 last year now averages around ₦80,000.”
He added that the prices of garri, pepper, tomatoes, and other staples have also dropped.
Edun disclosed that 8.1 million households have received direct cash transfers to cushion the impact of reforms, with a target of reaching 15 million households once verification issues are cleared.
Debt burden and new tax law
The finance minister admitted that Nigeria’s debt service remains heavy, consuming a large share of revenue, while the country’s revenue-to-GDP ratio—about 10 per cent—remains one of the lowest in Africa.
He said the new Nigeria Tax Act, signed into law in June 2025, aims to broaden the tax base, simplify compliance, and reduce evasion.
According to him, the reforms create a more progressive tax system that protects low-income earners and ensures high-income groups contribute fairly.
“These measures will strengthen revenues, create fiscal space, and support greater investment in our people and infrastructure,” he said.
Oil output, investment rebound
Edun also said oil production has risen to 1.68 million barrels per day, including condensates, following improved security and reduced oil theft.
He listed key infrastructure and energy projects such as the Ajaokuta–Kaduna–Kano gas pipeline and the Project Bridge 90,000km fibre expansion as examples of the administration’s efforts to attract private capital.
“Public funds alone cannot meet Nigeria’s vast needs, so we are attracting private capital through public-private partnerships,” he explained.
Tinubu’s reforms paying off
President Tinubu, in his Independence Day speech earlier this month, had defended his administration’s economic reforms, saying they were painful but necessary to restore fiscal stability.
He said the removal of fuel subsidies and unification of exchange rates had freed up funds for education, healthcare, security, and infrastructure.
Tinubu noted that GDP growth had reached 4.23 per cent in Q2 2025—the fastest in four years—while inflation dropped to 20.12 per cent, the lowest in three years.
‘We are on the right path’
Edun said investor confidence is gradually returning as both local and foreign investors renew interest in Nigeria’s economy.
“Investors, multilateral institutions, and ordinary citizens are beginning to believe in the nation’s prospects again,” he said. “But confidence is fragile and must be sustained through predictable policies and disciplined fiscal management.”
He expressed optimism that Nigeria could achieve seven per cent GDP growth by 2027/2028, stressing that collective effort was needed to reach that goal.
“If we work together, we will not only meet this target but surpass it,” Edun concluded.
