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  • Tinubu will change things for the better, Edun tells ministry staff

    Tinubu will change things for the better, Edun tells ministry staff

    The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has assured that President Bola Tinubu’s plans for the nation will change things for the better.

    Addressing staff of the ministry in Abuja, the finance minister Edun emphasized that the President’s Renewed Hope Agenda is a comprehensive plan that will enhance service delivery in the country.

    He added that the agenda will not only benefit Nigerians by improving their living conditions but also make the Ministry more competitive on a global scale.

    According to Edun, President Tinubu possesses the qualities of a leader, a coach, and a strategist.

    Edun said he believes that the President will bring about positive change and improve the current story or narrative of the country.

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    Edun further described President Tinubu as a man who empathizes with the sufferings of Nigerians, even when the country possesses abundant resources in various sectors. This empathetic nature, combined with the President’s leadership and strategic skills he assured, will undoubtedly lead to significant changes in Nigeria.

    According to the finance minister, “the president’s Renewed Hope Agenda is a veritable tool for service delivery, things are going to change and be better, not only for Nigerians but will make the Ministry attain global competitiveness.”

    “President Tinubu is a leader, a coach and a strategist and will change the narrative. The President is a man of empathy, who acknowledges the sufferings of Nigerians even when Nigeria is rich in all sectors, will definitely change things around for good.”

    Edun who acknowledged the President’s vision of inclusivity and gender-friendly administration said, “I am extremely happy to be in the Ministry. I am privileged to be the Minister of Finance and the Coordinating Minister of the Economy and the Chairman of the Forum of African Ministers of Finance.”

    He admitted that the task was enormous and he couldn’t do it alone without the support of the management team and the commitment of the ministry’s staff.

    The Minister guaranteed that staff welfare would be given top consideration to ease their suffering. Edun then disclosed that plans were on the way for the provision of Compressed Natural Gas (CNG) buses to alleviate the suffering of Nigerians as a result of the removal of fuel subsidy, stressing that with CNG buses Nigerians would pay less for transportation.

    Earlier, the Permanent Secretary of Finance Okokon Ekanem Udo, expressed happiness with the Minister’s decision to call for the meeting with the staff and pledged the support of the management and staff of the Ministry for his success.

    The Permanent Secretary noted that the meeting was a “veritable platform for interaction” adding that its essence was to “rub minds, express feelings, tell ourselves the truth constructively and how to move forward.”

    Udo said that the Ministry has a conducive working environment for effective and efficient service delivery.

    The Joint Union Chairman, Comrade Mohammed Attahiru, while officially welcoming the Minister said, the “Minister has broken the jinx by holding the interactive session adding that, the interactive meeting was what the trade union had been yearning for, for years.

    He stated that, based on the Minister’s pedigree which stood him out, the union has no doubt that he will perform creditably and promised him their total support.

    Some of the issues the union wants the Minister to pay attention to include: the provision of additional staff buses, payment of promotion arrears, continuous staff training, and welfare packages among others.

  • Edun: Tinubu’s home-grown plan good to revive economy

    Edun: Tinubu’s home-grown plan good to revive economy

    • ‘There’s no likelihood of Nigeria seeking international assistance on debt restructuring’

    The Federal Government is confident that Nigeria’s economic condition is not so bad that the country will require external assistance in restructuring its debts.

    Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, said the government is certain that the economy and its debt profile are not in dire straits.

    He added that the economic plan is home-grown and not dictated by external influence.

    Edun spoke against the background of Nigeria’s national debt, currently at more than N87 trillion, and concerns that a shortfall in revenue could worsen the government’s financial sustainability.

    He said the overall outlook of the economic potential and the reforms by the government gives a strong assurance that Nigeria will not fall into any likelihood of seeking international assistance on debt restructuring, such as the International Monetary Fund (IMF)’s “Common Framework”.

    “We thank God Nigeria is not in that condition or situation now. We don’t need this type of financing at the moment,” Edun said.

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    The “Common Framework” is a system through which countries that are creditors agree on the basis of which to help a nation that cannot pay its debt.

    The “Common Framework” is intended to deal with insolvency and protracted liquidity problems, along with the implementation of an IMF-supported programme, such as an Extended Credit Facility and other conditional reforms.

    Edun said Nigeria’s economic reforms are home-grown, driven by President Bola Tinubu’s reform agenda and commitment to deepening national economic growth and development.

    “There is a Fiscal Policy and Tax Reform Committee in place. It has nothing to do with the IMF; it is home-grown. 

    “We’re into self-reliance, domestic resource mobilisation and that includes, in no small part, coming up with our own plans and ideas rather than having them imposed from outside by those who definitely know less than we do about our situation,” Edun said.

    According to him, the government is implementing a reform package in the form of strong fiscal policies that promote fiscal discipline, effective debt management, and prudent borrowing practices.

    “These policies help the government generate enough revenue and allocate resources efficiently, reducing the likelihood of needing debt restructuring.

    “The ongoing reforms are a package. They are being implemented steadily but they are complete in the sense that they deal with the revenue side, the fiscal side; that is the government revenue and government expenditure.

    “The reforms deal with the monetary side through the Central Bank. 

    “Some measures have been taken by the Central Bank, including the foreign exchange market reforms. 

    “They deal also with the issue of financing, making sure that the deficit can be financed, among others.

    “There are plans, strategies and targets in each of those areas. While it is a continuous work in progress, nothing ever stands still regarding the economy. 

    “I will say there is a well-laid out plan that is being constantly refined and this is led and spearheaded by Mr President’s eight-point priority areas,” Edun said.

    According to him, the government had taken preemptive measures to address potential debt challenges by identifying and addressing issues early on.

    He pointed out that the proactive approach ensures that debt issues are managed before they become severe enough to require restructuring from the IMF.

    Speaking during an interactive session at the just-concluded Annual Meetings of the International Monetary Fund (IMF) and the World Bank in Marrakech, Morocco, Edun noted that debt management requires versatility and an adequate understanding of the global financial situation.

    In terms of debt restructuring, the finance minister stated: “You don’t have to wait; you look for opportunities to maybe lengthen debt, improve the condition under which that debt is borrowed when you do so.

    “We must remember that the world we are in now is a world of high-interest rates. 

    “That means that debt is becoming more and more unaffordable, so if you have cheap financing, you better hold on to it as long as you can, as long as you are comfortably servicing it. 

    “In places where you can’t, you need to find the money to pay it down to make sure it is not a burden.”

    To benefit from debt treatment under the “Common Framework”, a country must have an IMF supported programme, such as an Extended Credit Facility, to support the implementation of suitable economic policies and structural reforms. 

    In practice, this means that if a country does not currently have an IMF-supported programme, it will need to request one in conjunction with requesting a debt treatment under the “Common Framework”.

    Also, the IMF has a key role in working with the authorities toward the development of a policy framework that will assist the country to regain external viability, including by restoring sustained inclusive growth.

    The second key role of the IMF is to define the financing or debt relief envelope consistent with the parameters of the IMF-supported programme, which informs creditor and debtor discussions on the necessary debt treatment. 

    This financing envelope is based on the macroeconomic framework and the accompanying debt sustainability analysis. 

    Zambia, for instance, is currently under the IMF’s “Common Framework”.

  • Edun: 84m living in poverty not acceptable to Tinubu

    Edun: 84m living in poverty not acceptable to Tinubu

    • We will give Nigerians decent work, sustained social protection

    • N25,000 cash transfer begins

    The 84 million Nigerians living in poverty is unacceptable to President Bola Ahmed Tinubu, Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said yesterday.

    The situation makes ending poverty a priority for the Administration, he added.

    The minister hopes the N25,000 conditional cash transfer to 15 million households, which began yesterday, will help address the problem for the most vulnerable in the short term.

    President Tinubu launched the Renewed Hope Conditional Cash Transfer initiative at the Presidential Villa.

    For three months, 15 million poor households nationwide will receive N25,000 cash support, for which N1.125 trillion has been provided.

    It targets over 61 million vulnerable Nigerians and is designed to cushion the petrol subsidy removal pain.

    The take-off of the programme coincided with this year’s International Day for the Eradication of Poverty.

    Among the initial beneficiaries, who were presented with cheques at the ceremony, were Larai Suleiman, Shuaibu Hassana, Sariki Bala Gamu, Okor Jonah and Hameed Isiaka.

    Edun said: “It (the number of poor Nigerians) is totally unacceptable to the President as it is to the rest of us.

    “That is why it is perhaps his number one priority to tackle poverty and he has a programme to stabilise and grow the economy in general.”

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    Nigeria’s population is estimated at over 225 million, according to Worldometer, which provides real-time world statistics.

    President Tinubu, represented by the Secretary to the Government of the Federation, Senator George Akume, restated his Administration’s commitment to poverty alleviation. 

    He said the theme of this year’s poverty eradication day: “Decent work and social protection: Putting dignity in practice for all,” aligns with the Renewed Hope Agenda.

    The President said: “Today is a significant day for us in Nigeria and for my administration for it brings with it an opportunity for me to restate my administration’s commitment to poverty alleviation as expressed in my eight-point agenda.

    “My government will lead from the front in seeking to ensure that all Nigerians have opportunities decent for dignified work and sustained social protection.

    “It is only via a sustained collaborative approach that we can win this war against poverty in Nigeria and the world at large. Hope is here.

    “I ask the Nigerian people to please ensure that they key into all the available programmes because they are here to help.

    “Our objective is to lift millions of Nigerians out of poverty.

    “Yet, this will only be possible with the cooperation of the people we seek to help. Let us continue to work together to achieve our collective goal of eradicating poverty in Nigeria.”

    Minister of Humanitarian Affairs and Poverty Alleviation, Dr Betta Edu, believes it would amount to sitting on a keg of gunpowder to ignore poverty.

    According to her, the N75,000, which each household will receive for three months, can form the capital for some small-scale businesses.

    She said: “Beyond this, the government will be providing low-cost shelter for the poor and internally displaced persons as a form of providing that cover for them.

    “Other interventions, including the rural vocational skills intervention, will be carried out at a mass scale.

    “All of these are targeted at the various dimensions of poverty in the country.

    “Poverty is that scourge, a hydra-headed cobra in the room that if not tackled, would consume everyone.

    “Sitting and ignoring poverty at any level will only seem or equate to sitting on a keg of gunpowder and that’s why today, the president is tackling it headlong.

    “We want to encourage Nigerians, the private sector, and development partners that it’s time to step up to the occasion.

    “We have a clear-cut roadmap, an action plan for the eradication of poverty. Everyone must key in and be part of it.”

    Edu believes Tinubu will eradicate poverty by 2030.

    World Bank country representative, Shubham Chaudhuri, stressed that cash transfers are universally accepted.

    According to him, the method has proven to be one of the most effective ways to support those impacted by economic shocks or rising living costs.

    Chaudhuri said: “This aid is crucial in helping them overcome the initial period during which they might otherwise be compelled to make decisions with long-term consequences.

    “For instance, these decisions might include reducing daily meals to just one or withdrawing their children from school.

    “The type of cash transfer referred to as ‘shock-responsive cash transfer’ that is currently being implemented is utilised by countries worldwide to offer temporary relief in such situations.”

    The President in July ordered the release of grains to 50 million farmers and households.

    He also ordered a review of the N8,000 conditional cash transfer programme, which was initially announced by the Administration following the removal of petrol subsidy.

    The sum was initially proposed for payment to 12 million poor households for six months.

  • Nigeria now destination of choice for investors, says Edun

    Nigeria now destination of choice for investors, says Edun

    The bold steps taken by the President Bola Ahmed Tinubu administration to steer the economy in the right direction has propelled Nigeria to become the destination of choice for most investors. 

    Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun made this known yesterday at a press briefing in Marrakech, Morocco.

     Highlighting Nigeria’s current investment climate and the opportunities available for foreign and domestic investors, the finance minister said Nigeria has taken bold, courageous steps to improve its economy and is now a prime destination for investment.

    Edun acknowledged that more work is needed but believes that Nigeria is on the right path towards economic recovery, job creation, and inclusivity for women and young people.

    He insisted that the opportunity being presented is not only to showcase what Nigeria has done but to also allow people to gain a better understanding of the progress that has been made.

    The Minister noted that some countries now see Nigeria’s progress as an inspiration but lack the courage to take similar steps.

    According to him, “regarding the opportunity to attract investment, there have been many conversations and in all honesty the narrative is that with the bold courageous steps that Nigeria has taken, we are now at the forefront almost number one on people’s list when they want to look at where to invest, that is now the narrative.

     “There is more to be done but Nigeria is definitely on the right path, taking the right decisions for the economy to recover and for it to attract foreign direct investment as well as domestic investment in other to recover true economic growth, job creation and at the same time achieve inclusivity of women and young people.”

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    The finance minister added that “the opportunity we have had, not so much to stand in front of people and showcase but that they get the opportunity within this environment to understand even more clearly what has been done and the truth is there are some countries here that say that ‘these are steps we would like to take but they do not believe they have essentially the courage to do it’.

    With regards to debt restructuring, the finance minister said the goal is to improve or modify the terms of the debt so that the borrower can better meet their obligations.

    Edun agreed that waiting to restructure debt is not always the best approach but instead suggested being proactive and looking for opportunities to improve the conditions under which the debt was borrowed.

    However, he pointed out that given the current global economic climate, debt is becoming less affordable due to high interest rates.

    He noted that, if a borrower has access to cheap financing, they should take advantage of it as long as they are comfortably servicing the debt.

    In situations where a borrower can afford to do so, they should try to pay down debt in order to avoid it becoming a burden.

    Speaking about more government borrowing but this time from the Central Bank, the finance minister underscored President Tinubu’s commitment to fiscal responsibility, rule of law, and a responsible approach to managing government finances, particularly in the context of borrowing from the central bank.

    According to him, one of President Tinubu’s key priorities is to adhere to the legal framework and regulations already in place and this, the minister explained, extends to the President’s commitment to staying within the limits for “Ways and Means”.

    Edun emphasized that President Tinubu is aware of the importance of fiscal responsibility, even though he may resort to overdraft borrowing, “his goal is to ensure that the government doesn’t exceed the statutory limits set for such borrowing.

    Moreover, the minister said that there has been a realization of the need to reduce the reliance on borrowing from the central bank, which might have been excessive or appeared to be spiraling out of control in the past.

    On the talks with the World Bank on $1.5 billion budget support, the minister confirmed that Nigeria was in talks with the World Bank to access the facility.

    According to Wale Edun, “it has free money through IDA International Development Association. It is for the poorer countries and right now I think we qualify as one of the countries that can borrow in the normal window of World Bank funding but also some concessionary IDA funding and that means that effectively the interest rate will be zero.

    “So, therefore, there is no stigma attached to qualifying for World Bank funding to help finance development. In this particular case, it has long been in the pipeline, and we are hoping that the funding will come through soon.

    “A lot of hard work is being done. There is a Federal Executive Council meeting on Monday, that should be able to discuss this, as well as other initiatives for financing on reasonable terms. We have talked about the high costs of money, the World Bank money is the cheapest”.

    Speaking on the current level of hardship Nigerians are going through as a result of putting an end to subsidy on fuel and exchange rate unification, the finance minister said “these are painful reforms and Mr. President is a man of empathy who promised not to leave the vulnerable and poor behind.

    “As you know there is a set of interventions being rolled out which, day by day, should improve things. More food has been grown, fertilizers are being released, Compressed Natural Gas (CNG) transport is the order of the day, while the government buses, conversion kits  are on the way, there is take-up of that initiative by the private sector.

    “So day by day we are moving closer to affordable and even cleaner energy simply because the price of petroleum products has been put where it really stands rather than having cheap fuel which is below the market price and below its value. Now you are seeing the right value and that is making the move to cleaner and finer energy.

    He also added that one of the benefits of some of the measures taken, “is the fact that there has been a 30 per cent reduction in smuggling of petroleum products across the border, I think is a major achievement of that all important step to remove  fuel subsidy.

    Meanwhile, the Minister has been appointed as the Chairman of the African Governors’ Forum of the World Bank.

    The African Governors’ Forum is a platform for African finance ministers and central bank governors to engage with the World Bank on issues of mutual interest.

    The African Caucus was established in 1963 to strengthen the voice of African Governors.

    A statement issued by the Federal Ministry of Finance on its official X (formerly Twitter) account, said that this marks the first time Nigeria has assumed the role of Chairman in 60 years.

    It said: “World Bank Appointment: Nigeria’s Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun has been appointed to Chair the African Governors’ Forum of the World Bank.

    “This marks the first time Nigeria has assumed the role of Chairman in 60 years.

    ‘’The appointment presents a unique opportunity for Nigeria and the implementation of President Tinubu’s Renewed Hope Agenda.’’

    According to the IMF’s guiding principles for the caucus, the forum’s Chairman is determined by rotation based on the alphabetical order of African countries.

    This system ensures that each country takes its turn to lead the group, preventing one nation from chairing the forum twice while others have yet to assume the role.

  • Investors, rating agencies positive about Nigeria, says  Edun

    Investors, rating agencies positive about Nigeria, says  Edun

    Development finance institutions, investors and rating agencies are excited with the handling of the economy by the President Bola Ahmed Tinubu administration, Minister of Finance/Coordinating Minister for the Economy, Mr. Wale Edun, said yesterday.

    He broke the news to reporters on the sidelines of the ongoing International Monetary Fund (IMF) and World Bank meeting in Marrakech, Morocco.

    The minister had earlier met with officials of SCB Rating Advisor, Fitch, Moody’s and Standard and Poor’s to intimate them of the government’s economic programmes.

    Speaking to the outcome of the meetings, Edun said the administration was taking necessary steps to reduce poverty and improve the lives of all Nigerians, and that the tough decisions being made by the president are being well-received.

    He stated that the Nigerian delegation’s presence at the World Bank/IMF meetings, where they were able to gauge the opinions of various stakeholders, including development finance institutions, private bankers, investors, analysts, and rating agencies shows that these groups are happy with the government’s decisions.

    Edun said: “Our wish is to grow the Nigerian economy to reduce poverty, make life better for all Nigerians, which is the determination of President Tinubu, and indeed his whole administration. I think we are laying the groundwork for achieving that.

    “He’s making the tough decisions and the reception is very positive. We’re here at the World Bank/IMF meetings and so we get a sense of what the whole world thinks, because here you have the development finance institutions, but also you have the private bankers, you have the investors, you have the analysts, you have the rating agencies, and the reaction from one and all so far is very positive.”

    The minister confirmed that Nigeria has been elected the next chair of the African Caucus and Governors’ meeting for next year.

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    “What this means”, Edun stated, “is that Nigeria has the leadership of the African Governors Forum within the World Bank group.

    “It is Nigeria that will help to set the agenda and push the case, for instance, for a third member of the Board of governors from sub-Saharan Africa.

    “There are two from Africa currently, and we think the third one should come from sub-Saharan Africa, so that we have a bigger voice in the governance. We have more representation in the board of the World Bank group than the IMF’.

    On debt forgiveness, Edun argued that the real issue is not the debt itself or forgiving it, but rather the perception and narrative surrounding Nigeria.

    According to him, there is a positive and optimistic attitude towards Nigeria, particularly from investors.

    The minister said: “Nigeria is seen as having a strong economy, a large population, and abundant resources. After China and India, Nigeria is considered to be one of the most attractive investment destinations. However, in order for Nigeria to fully benefit from this interest, it needs to be prepared to attract and accept investment”.

    “This would involve focusing on sectors such as agriculture, solid minerals, industry, manufacturing, and import substitution.

    “Ultimately, both foreign direct investment and existing investors have an interest in contributing to Nigeria’s economic growth and development.” 

  • Edun to Indian investors: Nigeria removing barriers to forex rate

    Edun to Indian investors: Nigeria removing barriers to forex rate

    The Federal Government is in the process of removing major macroeconomic impediments to the stability of the foreign exchange (forex) rate, inflation, interest rates, liquidity and access to adequate finance.

    In a new acceleration of the President Bola Tinubu’s monetary and fiscal reforms, the government is also finalizing key initiatives aimed at freeing the macroeconomic environment from legacy constraints, with a view to enhancing Nigeria’s attractiveness as a global destination for investments.

    Tinubu had launched major fiscal and monetary reforms, including the abolition of multiple forex rates, removal of forex restrictions and streamlining investment approval process.

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the process for the removal of  identified obstacles to a stable and liquid macroeconomic environment was almost being completed.

    “The major macroeconomic impediments to the stability of the exchange rate, of inflation, of interest rates and indeed of obstacles to liquidity, to enough financing, are now in the process of being removed,” Edun said.

    The pronouncement came as the naira recorded its largest gain at the forex market, closing at  N722 per dollar, the strongest rate since June 2023 when the Central Bank of Nigeria (CBN) unified multiple exchange rates.

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    Speaking on the sidelines of the Group 20 (G20) Summit in India yesterday, the minister expressed Nigeria’s perspective and commitment to building a stronger, sustainable, and resilient economy.

    He pointed out that while government had taken steps to improve the business environment through the removal of forex restrictions and streamlining of the investment approval process, it would soon deepen the reforms with another round of comprehensive initiatives to stabilise the macroeconomic outlook.

    “Our focus is on attracting global capital, promoting foreign direct investments and this underscores our commitment to job creation, economic diversification, and revenue expansion,” Edun added.

    He urged investors to take advantage of the opportunities that Nigeria has  offered, stressing that Nigeria is an attractive destination for business, brimming with opportunities across the various sectors.

    Edun said government’s reforms will also drive inclusivity by including women and young people in what is going on in the economy and having them play their role.

    “For those interested in investing, the playing field has been levelled, it has been cleared of debris and the opportunity is now there for you to seize,” Edun told Indian and other global investors.

    The naira recovery has been attributed to announcement by the CBN Acting Governor, Folashodun Shonubi that forex backlogs will be cleared in two weeks.

    The uptick in crude oil prices have also helped naira recovery at the official market.

    Oil prices hit a 10-month high owing to supply cuts by Russia and Saudi Arabia which Brent crude price rising  to $91pb for the first time since November 2022.

    Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said Saudi Arabia would further extend supply cuts to December adding that Brent prices are expected to rise to $95pb by year-end.

    Rewane added that global crude oil supplies expected to improve on refinery maintenance.

    On forex backlog clearance, Shonubi had last Monday said that the apex bank was working with commercial banks to clear the forex backlog through different structures within the forex market.

    Shonubi said the banks, which controls 75 per cent of the forex transactions would play significant role in seeing that the backlogs go.

    The backlogs, estimated at $8 billion to $10 billion,  constitute of dollar requests from manufacturers who want to purchase raw material inputs from abroad, parents paying their children’s tuition fees abroad,  Nigerians paying medical bills abroad, travelers sourcing Business Travel Allowances (BTAs), and Personal Travel Allowances (PTA), among others.

    Analysis of data on the FMDQ website showed a $160 million transaction volume on Friday, a major leap from around $60 to $80 million average daily turnover recorded previously.

    However, at the informal parallel market, naira closed weekend around N920 per dollar amid concerns the supply gap may linger.

    Former Executive Director, Keystone Bank Limited, Richard Obire said the weakness of the naira over time has been caused by two broad issues linked to the quality of leadership and governance.

    He said Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports remains a hindrance to naira stability.

    Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

    On ways to strengthen the naira, he advised that in the short-term, there is need to find non-market damaging ways to increase the supply of hard currencies and reducing the demand for same.

    According to him, right pricing for remittances and frictionless processes for their use by  recipients  should see the volumes growing again.

     He said that insecurity hampering food production needs to be tackled with a sense of urgency and effectiveness.

    “Priority should be given through deploying pragmatic incentive programs to drive  up the volume of food products for domestic consumption and industrial use to reduce our food import bill. All government consumption expenditures requiring the use of hard currencies should be suspended indefinitely, starting now,” Obire said.

     Obire said the Turn Around Maintenance  (TAM) status of refineries in Port Harcourt and Warri should be appraised immediately. 

    He added:” Efforts should be focused on the one which can begin producing quicker. The other one should be made to be up and running, not long after. This should reduce required forex for fuel imports.”

  • Edun: hyper-inflation, low GDP per capita to end soon

    Edun: hyper-inflation, low GDP per capita to end soon

    • Unemployment rate down to 4.1% in Q1
    • Our investment drive on course, by Shettima

    Nigerians had a glimpse of the economic outlook yesterday.

    The Federal Government stepped up efforts to rein in inflation, increase productivity and boost savings and investments.

    The initiatives are expected to lead to a general improvement in the average living standards.

    Vice President Kashim Shettima and Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun said Nigerians should expect significant improvements in the overall economic performance.

    The assurances came as the National Bureau of Statistics (NBS) indicated that the unemployment rate reduced from 5.3 per cent in the fourth quarter of 2022 to 4.1 per cent in the first quarter of 2023.

    Edun said ongoing government initiatives would put an end to hyperinflation and a decade-long decline in Gross Domestic Product (GDP) per capita. 

    He spoke at the retreat fro the Presidential Committee on Fiscal Policy and Tax Reforms in Abuja.

    According to him, the era of GDP per capita falling by 30 per cent over the past 10 years is over with the president’s ‘Renewed Hope Agenda’.

    He also assured that the issue of “hyper-inflation in the nation’s economy would soon be a thing of the past”.

    Nigeria’s inflation rate rose by 129 basis points from 22.79 per cent in June to 24.08 per cent in July, driven by the general increase in prices of basic living costs.

    Edun noted that the government’s agenda would “create jobs, reduce poverty, control micro and macroeconomic policies, attract investors, stabilize the exchange rate and drive the economy to reduce poverty to the lowest level”.

    He noted that although the removal of fuel subsidy has slowed down the economy, interventions have been put in place to cushion the pains of reform and correct subsidy leakages.

    Edun reminded members of the Presidential Committee on Fiscal Policy and Tax Reforms of Tinubu’s 30-day deadline to deliver something tangible on their assignment, urging them to fast-track their assignment as there was no time to waste.

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    Shettima said the Tinubu administration was structuring its economic reforms and diplomatic alliances to attract investments and partnerships to Nigeria.

    The Vice President, who led a high-powered delegation to represent Tinubu at the 15th BRICS Summit, addressed world leaders at the 3rd BRICS-Africa Outreach and BRICS Plus Dialogue on the sidelines of the BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa.

    Shettima said while the administration repositions the economy and diplomatic alliances, it would also be working to align with international and regional cooperation.

    “The new government, which began less than three months ago, is examining the variables and evaluating the scope and level of regional and global cooperation to pursue in order to establish Nigeria as the desired friend and partner,” Shettima said.

    He addressed a large audience which included Presidents of China, India, Brazil, South Africa and Russia’s Foreign Minister.

    He noted that the theme of the Dialogue: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism,” underscored the profound realisation that the cornerstone of stability within intricate multipolar landscape lies in fostering developmental partnerships.

    He commended the organisers, saying the agenda aligns with “the aspiration of the people we represent, the future citizens of a world that can ensure our collective prosperity”.

    Shettima said the dialogue provided a unique platform for deliberation, note comparison, and exploration of a mutually beneficial partnership that could evolve into a novel driving force for development.

    “The international global governance structure to which we currently adhere was established prior to the independence of the African continent and many countries in the global south. 

    “So, it’s indeed imperative to reform global governance to align with the realities of today’s world and to acknowledge the necessity for partnerships that ensure shared prosperity, inclusivity and sustainable development,” the Vice President said.

    He assured that the Tinubu government “is committed to shaping and fortifying the global framework and governance concerning all major international issues, particularly in the fields of finance, climate change, bridging the digital divide, adopting a comprehensive strategy towards debt alleviation, addressing food and energy insecurities, instituting post-pandemic recovery measures, and fostering financial inclusion within developing countries”.

    Stressing the need for a revitalised international cooperation that is effective, representative, and inclusive to tackle the challenges facing the world, Shettima said Nigeria is ready for collaboration and partnership that guarantees a world governed by acceptable rules and norms.

    “We seek partnerships that provide opportunities for all to engage in trade, prosperity, and shared progress with no marginalisation based on geography, race and legitimate sovereign affiliations,” Shettima said.

    Reflecting on the 2030 Agenda for the Sustainable Development Goals (SDGs), the Vice President explained that several nations confront historical developmental vulnerabilities and challenges that are beyond their control and thus need to unite within regional groups and forge a novel form of international cooperation to foster the SDGs.

    He added that global partnerships would also strengthen vibrant private sector participation among the countries of the global south, nurture youth employment and skill building as a deterrent against terrorism, organised crime, and related challenges.

    Earlier in his address on the 3rd day of the summit, the Chair of BRICS and President of South Africa, Cyril Ramaphosa, expressed the commitment of South Africa to advance the interests of the global south.

    He announced that as part of the outcomes of the summit to expand its objectives, the group has approved the admission of six new full members including Argentina, Egypt, Iran, Saudi Arabia, Ethiopia and the United Arab Emirates.

    In its report on Nigeria Labour Force Survey (NLFS), Q4 2022 & Q1 2023, the NBS stated that the unemployment rate was 5.3 per cent in the fourth quarter of 2022 and 4.1 per cent in the first quarter of 2023.

    The report indicated that more Nigerians are becoming self-employed.

    The share of wage employment was 13.4 per cent in the fourth quarter and 11.8 per cent in the first quarter of 2023.

    It stated that the proportion of Nigerians operating their businesses or engaging in farming activities rose from 73.1 per cent in the fourth quarter of 2022 to 75.4 per cent in the first quarter of 2023.

    The report also showed improvement in working hours with 36.4 per cent and 33.2 per cent of employed persons working less than 40 hours per week in the fourth quarter of 2022 and the first quarter of 2023.

    The report indicated that this trend was common among individuals with lower levels of education, young people, and those living in rural areas.

    The NBS, in the first quarter of 2023, said about 76.7 per cent of working-age Nigerians were employed as against 73.6 per cent recorded in the preceding quarter.

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    Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, said the terms of reference of the committee are fiscal governance, revenue administration, and tax policy review.

    According to him, the deliverables from the committee included optimum taxes, harmonised revenue collection functions, a revised national tax policy, national fiscal framework, preparation of bills for constitution amendment, revenue optimisation, production of a model template for sub-nationals and establishment of the national tax amnesty scheme.

    On the delegation of the Vice President to the BRICS Summit were Nigeria’s High Commissioner to South Africa, Amb. Mohammed Haruna Mantra, the Consul-General, Amb. Andrew Idi and other senior government officials.