Nigeria’s economy has bounced back from the brink, achieving relative stability over the past 18 to 20 months, according to Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Speaking during a Zoom dialogue in Abuja on Thursday, Edun revealed that the nation narrowly avoided economic collapse, having relied on illegally borrowed central bank funds beyond regulatory limits.
“Where we are now is that, in the last quarter of 2024, the economy grew at roughly 3.84%, close to the annual target of 3.4%. Inflation is also beginning to slow, dropping by 1.3 percentage points between January and February,” Edun explained.
He pointed to declining food prices, lower petroleum and energy costs, and a stabilizing exchange rate as signs of progress. A stronger balance of trade and a 20% rise in government revenues in 2024 further reinforce this outlook.
“The budget deficit is reducing, debt servicing as a percentage of revenue has dropped, and the cost of living is gradually improving. All economic indicators are moving in the right direction,” he added.
Looking ahead, Edun highlighted the government’s focus on attracting private sector investment, leveraging technology for revenue generation, and tightening government spending through tax reforms, including raising the top-end personal income tax rate from 18.6% to 25%.
He also outlined key economic drivers such as agriculture, housing, and infrastructure. Plans include improving farming techniques for better harvests, introducing a 25-year low-interest mortgage to tackle the housing deficit, and using public-private partnerships to develop major highways.
On financing, Edun emphasized the shift from costly foreign loans to domestic bond issuance while ensuring pensioners receive their due benefits, with over ₦700 billion in bonds issued for payments.
While Nigeria remains an oil-dependent economy, the minister assured that efforts are underway to create a safer, investor-friendly environment for oil operations and maximize revenue while fossil fuels remain viable.
