The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has assured Nigerians that the country’s economy is on a recovery path, saying the most difficult period is now behind.
In an opinion article released on Sunday, titled “Nigeria Turning Towards Prosperity,” the minister expressed optimism that recent economic reforms introduced by President Bola Ahmed Tinubu’s administration have begun to yield results, signalling a gradual return to stability.
“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 stated. “The road ahead will demand hard work and discipline, but we are firmly on the right path.”
According to him, when President Tinubu took office in May 2023, the economy was struggling with low growth, high inflation, and severe market distortions caused by fuel subsidies and multiple exchange rates, which discouraged investment.
He noted that the President’s directive was to remove those distortions, encourage productivity, and create an environment where private investment could thrive.
Edun highlighted that two years after the reforms, key indicators are beginning to show positive signs. He said the Gross Domestic Product (GDP) grew by 4.23 per cent in the second quarter of 2025 — the fastest in four years — while inflation, though still high, moderated to 18.02 per cent after six straight months of decline.
He added that the exchange rate has stabilised, with the gap between official and parallel market rates narrowing from about 70 per cent to just one per cent. Nigeria’s foreign reserves have also risen to $43 billion, the highest level since 2019.
“These are more than just numbers; they are the foundation for building inclusive growth that benefits every Nigerian,” he said.
The removal of fuel subsidies, which took effect in May 2023, pushed the pump price of petrol from an average of ₦238 per litre to between ₦910 and ₦950 in 2025. Similarly, the unification of exchange rates led to an initial depreciation of the naira, but the local currency has since recovered, trading at ₦1,457.96 per dollar as of October 24, 2025.
Edun acknowledged that while progress is evident at the macro level, millions of Nigerians still judge government performance by the prices of food, transport, and other essentials.
“Food inflation has been our heaviest burden since it surged after currency depreciation and the removal of fuel subsidies. However, targeted measures are beginning to ease the pressure,” he said.
He explained that a bag of rice, which sold for about ₦120,000 last year, now averages ₦80,000, with the prices of garri, pepper, and tomatoes also falling. He assured that the government is taking steps to sustain the downward trend in food prices while ensuring smallholder farmers remain motivated to produce more.
According to him, 8.1 million households have already received direct cash support from the federal government to cushion the impact of economic reforms. The goal, he said, is to reach 15 million households once identity verification issues are resolved.
On public debt, Edun admitted that debt servicing remains heavy, consuming a large share of national revenue, but added that reforms are ongoing to strengthen fiscal sustainability.
He said the Nigeria Tax Act 2025, signed by the President in June, would help broaden the tax base, reduce evasion, and make the system fairer. “The reforms introduce a more progressive tax system that protects lower-income earners while ensuring that higher-income groups contribute more,” he noted.
He also mentioned the Revenue Optimisation and Assurance Programme, which aims to increase non-oil income and create room for more investment in infrastructure, education, and healthcare.
Edun explained that oil production has recovered to 1.68 million barrels per day, including condensates, while security improvements have reduced oil theft. He said ongoing refinery projects would also strengthen the downstream sector and improve energy security.
The minister emphasised that public funds alone cannot meet the country’s infrastructure needs. To address this, the government is attracting private capital through Public-Private Partnerships (PPPs). He cited projects like the Ajaokuta–Kaduna–Kano gas pipeline and Project Bridge’s 90,000km fibre expansion as examples of how the administration is laying the foundation for industrial growth and nationwide connectivity.
Edun said investor confidence is gradually returning, noting renewed interest from both local and foreign investors. However, he cautioned that maintaining confidence would require a stable policy environment, disciplined fiscal management, and consistent efforts to reduce inflation.
“Our medium-term target is seven per cent growth by 2027 or 2028. Achieving this will require not only government effort but also strong participation from the private sector and citizens,” he said. “If we work together, I am confident we will surpass this target.”
