At the World Economic Forum (WEF) in Davos this week, Nigeria’s Minister of Finance, Mr. Wale Edun, praised President Bola Tinubu for implementing key economic reforms that have significantly stabilized the nation’s economy.
According to Edun, these measures have successfully reclaimed 5% of Nigeria’s GDP that was previously lost to inefficiencies within the federal government and fiscal authorities.
“The government under President Bola Tinubu has stabilized the economy; it has taken back 5% of GDP that was being wastefully lost to the federal government and fiscal authorities,” Edun stated in an interview with Bloomberg.
The finance minister emphasized the importance of critical reforms, such as the removal of fuel subsidies and the adoption of market-driven pricing mechanisms for petroleum products and foreign exchange.
These steps, he noted, have set the foundation for increased foreign direct investment (FDI) into the country.
“These steps have set the stage for the return of foreign direct investments,” Edun remarked, citing early signs of progress in the form of significant investments from global energy giants.
Shell has committed to a $5 billion investment, and TotalEnergies has announced a $3 billion investment decision.
Edun also addressed concerns over Saudi Arabia’s reported investment delays, noting that the discussions are ongoing. “I’m not sure funds were committed. It’s an ongoing conversation. It’s part of the President’s economic diplomacy around the world,” he explained.
The Minister had led a delegation to Saudi Arabia in December 2024 to strengthen the two nations’ economic ties and improve frameworks for export credit, insurance, and market access.
“We have brought back foreign exchange. We have brought back jobs for Nigerians,” Edun affirmed, highlighting the positive outcomes of the administration’s diplomatic and economic strategies.
When questioned about Nigeria’s budget deficit and the possibility of a Eurobond sale in 2024, Edun confirmed that the government is exploring the option to address deficit spending.
However, he clarified that any funding required will not come from “printing of money,” a practice that had previously contributed to economic instability.
“If you look at our budget presentation, which is currently going through the National Assembly, one thing you will notice is there is some deficit spending,” Edun said. “But we will raise funds by accessing financial markets on reasonable terms,” he added.
The Tinubu administration’s reforms have drawn both domestic and international attention. The removal of fuel subsidies, although controversial, is considered one of the administration’s most significant decisions.
Analysts have noted that subsidies were draining billions of naira annually, further worsening the country’s fiscal deficit.
The unification of exchange rates, another pivotal reform, is expected to attract foreign investors and eliminate the distortions caused by multiple exchange rate windows.
Experts predict that these changes will ultimately improve Nigeria’s balance of payments and foster long-term sustainable growth.
