Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the country’s macroeconomic indicators are showing signs of sustained improvement following nearly two years of coordinated fiscal and monetary reforms aimed at pulling the economy back from the brink of collapse.
Speaking during a virtual policy dialogue on Thursday, Edun disclosed that Nigeria’s economy recorded a 3.84% growth in the final quarter of 2024, bringing it close to the annual growth target of 3.4%.
He attributed the performance to strategic interventions across key sectors, improved revenue generation, and ongoing efforts to restore market confidence.
According to the minister, inflation—which has been a major concern—began to ease in early 2025 with headline inflation falling by 1.3 percentage points between January and February.
Food inflation, a critical pressure point for households, also showed signs of slowing.
Edun noted that the stabilisation of the exchange rate has significantly improved the affordability of imported services such as healthcare and education, while energy and petroleum costs have declined due to improved sectoral efficiency.
On the fiscal front, Edun said federal revenue rose by 20% in 2024, while the budget deficit narrowed, and debt servicing as a percentage of revenue decreased, signaling a more sustainable path for public finance.
“All indicators are moving in the right direction,” Edun said. “The most important takeaway is that the cost of living is beginning to moderate, and investor confidence is gradually returning.”
The finance minister acknowledged that the economy had previously faced extreme vulnerabilities, including the misuse of central bank overdrafts far beyond statutory limits, which left the nation exposed to fiscal instability.
He credited recent reforms and enhanced coordination between the Central Bank of Nigeria (CBN) and the Ministry of Finance for averting a full-blown crisis.
Looking ahead, Edun listed agriculture, housing, and infrastructure as the primary engines of growth.
He announced that the government would scale up dry and wet season farming, introduce 25-year low-interest mortgage facilities, and advance road development through the Highways Management and Development Initiative (HMDI), aimed at concessioning major federal roads.
The minister also revealed that the administration is transitioning away from concessional loans and bilateral funding toward domestic bond issuance and more sustainable financing models.
As part of broader structural reforms, Edun said a tax reform bill is underway to raise the top-tier personal income tax rate from 18.6% to 25%, while simultaneously enforcing stricter controls on government expenditure.
He also reaffirmed the government’s commitment to resolving legacy pension liabilities, revealing that over N700 billion in bonds had been issued to address outstanding pension arrears.
On the energy front, Edun admitted that Nigeria remains an oil-dependent economy but stated that the focus is now on creating a more secure and investment-friendly environment for upstream operators.
This includes encouraging public-private partnerships, privatisation, and joint ventures to boost revenue generation from fossil fuels while conditions remain favourable.
“The current trajectory reflects not only macroeconomic resilience but also a deliberate strategy to foster private sector-led growth,” Edun concluded. “We are laying the foundation for a more inclusive, diversified, and competitive economy.”
