Nigeria’s Economy on Path to Recovery, Wale Edun Says, Highlights Successes Ahead Of 64th Independence Anniversary

Ahead of the country’s 64th independence anniversary, the federal government says the steps taken by President Bola Tinubu to revive the economy are already bearing fruit. Minister of Finance and Coordinating of the Economy, Mr. Wale Edun, affirmed this on Thursday in Abuja, at the 64th Independence Anniversary World Press Conference.

The media briefing was attended by Secretary to the Government of the Federation (SGF), Senator George Akume; Minister of Budget and Economic Planning, Senator Atiku Bagudu; Minister of Information and National Orientation, Mohammed Idris; Minister of Works, Senator Dave Umahi; Minister of Water Resources, Professor Joseph Utsev; Minister of Education, Professor Tahir Mamman; Minister of Tourism, Lola Ade-John; and Minister of Special Duties and Inter-Governmental Affairs, Zaphaniah Jisalo, among other top government functionaries and presidential aides.

Edun said there had been signs and evidence that the measures to stabilise the economy were encouraging, despite the widespread difficulties and inconveniences.

The minister stated, “Inflation is coming down, the exchange rate is stabilising, the reserves are rising, the budget deficit is falling, government revenues are recovering.

“But on the basis of that stabilisation, it gives us the opportunity to grow the economy, to grow the economy through agricultural production and agro-industrial processing.

“It gives us the chance to now grow the economy as we are seeing with local production, industrialisation, including as we see local refining of petroleum products and the potential for exporting.”

The minister stated that the country was pivoting towards the CNG initiative, a form of a greener product, which the federal government believed will result in improved economic wellbeing, social wellbeing and a better life for Nigerians.

Edun, however, conceded that at 64, and after 25 years of unbroken democratic governance, the country was not where it should be.

He said, “We should not be importing food and the strategy and the aim and objective of government is to get us out of that situation as soon as possible.

“So, the work on the remainder of the wet season harvest, providing inputs, seeds, fertiliser to small-scale farmers, particularly under the Nigerian Agro- pocket scheme, which has been successful, is ongoing.

“In the meantime, there is a short-term measure to import food. Government has already ordered, procured maize and wheat, which is on its way, as regards the other importers. It is critical, but we do not disrupt domestic production of food.

“It is critical, but we do not disrupt farming in Nigeria by flooding the market with imports that now put prices where farmers are now discouraged from engaging in production and millers are discouraged from engaging in food processing.”

He described food insecurity as a worldwide phenomenon affecting about 35 per cent of the world’s population, stressing that the federal government is having conversations and consultations to see what quantities can be brought in without disrupting the agricultural sector, particularly the large-scale food milling.

The minister described the removal of petroleum subsidy as a courageous move by Tinubu that had drawn international support in terms of relatively concessional financing to support and to help to maintain a fiscal position.

He said, “And so, we do have, in the petroleum refining sector, the beginnings of a return to the path of industrialisation, when you produce locally, that is meant to give you value added, it’s meant to give you jobs. And in the petroleum sector, you save on all the importation costs, freight costs and so forth.

“In addition, Mr. President has implemented a major innovation in facilitating that domestic refiners can buy crude from NNPC in Nigeria.

“The savings there are obvious and I think it is a matter of time when the various benefits of such a scheme will feed through.

“And in addition, we do have lower oil prices, which means we lose on exports, but we do gain in terms of the opportunity and the potential for lower petroleum product prices. As has been said and announced, the subsidy is no more and petroleum pricing is a matter between the various parties in the market.”

Bagudu added that it was sensible for Nigerians to transit to CNG as it was a cheaper source of fuel, not just for transportation, but also for irrigation and other productive activities.

He said the country had a very small economy, with the federal budget of about $20 billion, relative to Indonesia of $215 billion, and Brazil, whose federal budget is $750 billion.

Bagudu stated, “Mr. President is ambitious that we can create a one-trillion-dollar economy in as short time as possible and he is doing so. But to create a one-trillion-dollar economy you have to take measures pleasant and unpleasant, but proper.”

Minister of Information and National Orientation, Mohammed Idris, said Tinubu was implementing a series of transformative policies and reforms designed to address the missteps of the past and set Nigeria to emerge as a formidable economic superpower in the near future.

Idris said, “Despite global economic headwinds and the transitional pains accompanying some of the reforms, the president has remained focused in his efforts towards reviving our economy and returning the country to the path of prosperity and sustainable growth.”

Minister of Works, Senator Dave Umahi, said the ministry would introduce e-tolling on Lagos- Ibadan Express Way, Makurdi-9th Mile Road, Keffi-Makurdi Road, and Abuja- Kano Road upon completion.

Umahi said the tolling would start with the Keffi-Makurdi Road.

He stated, “We have not rolled out because we don’t want anybody to pay with cash. We are working with the Ministry of Finance on how we can have paperless tolling system over there.

“For example, we are completing Lagos-Ibadan, we are working on Makurdi-9th Mile, we are working on Abuja-Kano. So, these roads are going to be tolled. We are not just tolling them; we are building confidence in the use of the road. People can travel at night because we are building security.”

He disclosed that the federal government saved about $60 billion by rejecting the review of the 375 kilometres Kano-Abuja road contract from the contractors, who wanted a review it from $799 billion to $1.5 trillion.

“We rejected that and we have been able to save $60 billion by way of review of the project. And we disaggregated the project into three sections,” he said.

Minister of Water Resources, Professor Joseph Utsev, disclosed that Tinubu, following the recently breached Alau Dam in Maiduguri, had constituted a technical committee to assess all dams in Nigeria.

He assured that the government would bring all the expertise on board to ensure that the damaged dam was rehabilitated and new dams were constructed.

Olawale Ajimotokan

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