Nigeria's Economy on the Upswing: FG Set to Clear Debts — Wale Edun

Wale Edun

The FG now has sufficient funds to pay off debts as Nigeria's economy grows, according to Wale Edun.

President Bola Tinubu has authorized an emergency economic plan, according to Wale Edun, the minister of finance and coordinating minister of the economy, which will be put into effect in the upcoming six months.

In Abuja on Tuesday, Wale Edun shared this insight as part of the sectoral report highlighting President Bola Tinubu's first year in office.

He said that the president had approved further economic stabilization.

Edun said: “A fresh intervention approval from Mr. President today is the economic emergency plan for stabilising the economy and to be implemented over the next six months.

“This was put together by the president's economic team, by the private sector representatives, by the sub-national or the state governments.

“We have all sat together in recent weeks and we had a package from the President's desk this afternoon for his approval.

“Why it was afternoon was because it was this morning that we got the final clearance from a state governor who had said he wanted the final chance to review the inputs.

“With that clearance, we're now good to go in terms of the major economic plan for mr. president to approve.”

The minister continued, saying the government now has sufficient funds to pay off debts.

Edun states that the government did not have enough money to cover its expenses, in contrast to when the administration took office.

According to him, the country's revenue has significantly increased and been completely rebuilt through the deployment of technical changes and procedures.

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The minister said: “What that means is that the government can now pay its way. The government is paying its debt service without resulting in Ways and Means, particularly international debt service. 

“That process that has been put in place, is one that we have mandated not just by Mr. President, but even the national assembly in passing the 2024 budget, insisted that Nigeria's money that was in the hands of parastatals, agencies, or other enterprises needed to be brought in.

“That has been done by the government, not in as comfortable a situation as we would like to be, but onwards where we've paid our way domestically, internationally.”

Additionally, Edun stated that $200 million in overdue payments have been made to the Islamic Development Bank for their shareholding.

“Things that do not allow confidence to be built and do not allow Nigerians to have that vital place when they sit at a table and they are pulling money. All those are a thing of the past. They have all been paid out,” he added.

Regarding economic growth, Edun stated that the GDP growth rate of Nigeria is currently 2.98 percent, which is higher than the 2.3 percent increase observed in the first quarter (Q1) of 2023.

He asserts that the economy's backbone, the agriculture sector, is currently seeing minimal growth.

He said: “This growth in agriculture provides the monetary authority with the leverage needed to stabilise foreign exchange (FX) rates.

“By continuing on this path and intensifying our efforts, we are on track to lift many Nigerians out of poverty.

“This sector's progress is expected to play a significant role in combating inflation, especially through a favourable wet season harvest that should stabilise food prices.”

As a result, Edun said, the ministry is considering a scenario in which inflation declines.

He stated that a decline in inflation would allow the monetary authorities to stabilize the exchange rate and create an environment that would be more favorable to investment and lower interest rates.

Edun said that this would therefore lower poverty, boost productivity, and generate more jobs.