Tag: Edun

Minister of Finance and Coordinating Minister for the Economy, Dr. Wale Edun, defended Nigeria’s recent economic reforms, particularly the adoption of market-driven exchange rates and the sale of crude oil in Naira.

Edun spoke at an interactive session with the Senate Committee on Finance in Abuja.

He highlighted the positive outcomes of the reforms, especially in terms of increased government revenue.

He acknowledged the challenges faced in implementing the reforms but emphasised that the country is already beginning to experience their benefits.

According to him, the sales of crude oil in Naira initiated by President Bola Ahmed Tinubu, has been particularly impactful by contributing to a stronger domestic financial environment.

Edun’s remarks reflected a broader effort by the government to enhance fiscal management and ensure the long-term sustainability of the nation’s economic policies.

Chairman of the Senate Committee on Finance, Senator Sani Musa, stated the session was to assess the effects of the reforms on the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper for 2024 – 2026 fiscal years.

On when the Senate is expecting the 2025 budget to be presented by President Tinubu, Musa said: “The executive should be able to answer you that question because I know they are doing their work. They are working.

“As chairman of Finance Committee, I am interacting with them. The minister of finance just left. The minister of National Planning, they’ve been working tirelessly in
collaboration with the National Economic Council as well.

Read Also: FG commences review of curriculum for adult, non-formal education programmes

On whether he believes the Minister of Finance position that the country has already started reaping the dividends of of ongoing economic reforms, Musa said: “I can tell you I believe in what he has said because when you are talking of GDP, I mean our debt ratio to GDP, if you are talking about reduction in the debt ratio, you will see that it has come down from 90 to about 60. So that is, you see we are not seeing it physically but in terms of indices that gives and computes where the ratings are down, you will see that the economy is performing.

“And it’s only in Nigeria that you see official rates of dollar, those days, not now, official rate of dollar and then a dollar in the parallel market. Wherever I have the influence, if I’m well connected, I will be able to get the official rates and then you, ordinarily, have a factory that you want your factory to survive, you have to go to the black market and start looking for foreign exchange but today that differences have been removed and it’s not difficult to get foreign exchange.

“By what Mr. President is doing and what the economic team have done in terms of selling crude oil in Naira is to reduce pressure on our currency. You can see that almost 65% of our foreign exchange demands is to do with importation of oil.

“We can curtail that. I believe that within the next 18 months, we will see a lot of these changes in terms of even the volatility of the market and also the cost of items in the market.”

Other members of the economic team present at the interactive session are the Group Executive Officer (GCEO) of Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari; Director General of Nigeria Upstream Petroleum Regulatory Commission (NUPRC) Gbenga Komolafe and representatives of Governor of the Central Bank of Nigeria, Dr Olayemi Cardoso.

The President of the Senate, Godswill Akpabio later joined the session which held behind closed doors.

Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, on Tuesday, said the sale of crude in naira to local refiners had set the Nigerian economy on the path of industrialisation and modernisation.

Edun, chairman of the committee, said this while addressing State House correspondents after a meeting with President Bola Tinubu to review the sale of crude in naira to local refiners at the Presidential Villa.

According to him, the bold initiative, endorsed fully by the Federal Executive Council (FEC), ensures crude oil is sold to local refiners in naira, who in turn sell refined products to marketers in naira.

He said although there was much to be done, but there was a clear path to industrial development and modernisation of the Nigerian economy, because the key prices were right, which was encouraging private sector investment.

“With private sector refining of crude oil, we now have raw materials, not just for agriculture, but for industry, for chemicals, for paints, for building materials and for textiles.

“And of course, this is Mr President’s strategy and his policy of making conditions right for the private sector to invest, create jobs and grow the economy.

“Likewise, the market pricing of petroleum products, has also paved the way for NNPC to restore its balance sheet, restore its financial fortunes, and to give the federal, state and local governments more funding.

“This allows them to meet their obligations, salary payments to workers, social services to the population generally, and key infrastructure development,” said Edun.

The minister said the meeting reviewed the progress of the initiative to ensure that the initial obstacles to successful implementation of sale of cruse in naira to domestic refiners and the correlating sale of petroleum products in naira were overcome.

He said AfreximBank, the financial adviser, was part of the meeting, and would act as an intermediary to ensure that the parties – the seller of the crude, the buyer of the crude – were able to complete their transactions.

Edun said the scheme initiated by the President, was made possible also by the courageous and bold investment of the Dangote group, in a local refinery of 650,000 barrels per day capacity.

He said the implementation committee and the sub committee had worked assiduously with all stakeholders to ensure the initiative was implemented.

The stakeholders include the regulators, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NNDPRA) and Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

Others are: the Nigerian Maritime Administration and Safety Agency (NIMASA) NNPCL, Nigerian Ports Authority (NPA), the Navy and a host host of other stakeholders.

Read Also: Edun: Tinubu’s economic reforms yielding positive fruits

Alhaji Aliko Dangote, chairman, Dangote Refinery and Petrochemical Company, said his company would be able to satisfy local demand with the supply of crude so far by NNPCL.

“This initiative will actually revive a lot of industries in plastic, cooking gas, which is LPG, aviation, gas, Oil, not only PMS.

“At about 420,000 barrels per day, we still have capacity to grow. We are ramping up our capacity. Once we get there, we have enough naira crude, we’ll be able to fully satisfy the market.

“But when NNPC refineries start working going forward, then Nigeria will be one of the biggest exporters of Petroleum  products in history,” said Dangote.

He said the President pledged at the meeting to support domestic industries, and allow local refineries to work, and attract more investment into the country.

(NAN)

• Promises more help for the poor, vulnerable
• Cardoso: CBN eyes $1b monthly diaspora remittances
• Says bank recapitalisation will support $1tr economy plan

The Nigerian economy is on the path of recovery as shown by latest  key indicators, Minister of Finance and Coordinating Minister for the Economy, Wale Edun announced yesterday in Washington DC, United States.

He affirmed that  the economic reforms embarked upon by President Bola Tinubu were yielding positive results.

He spoke at a joint press conference with  Central Bank of Nigeria (CBN) Governor Olayemi Cardoso at the end of the International Monetary Fund (IMF)/World Bank Group Annual Meetings in Washington DC.

  He cited gradual decline in inflation rates, narrowing of  budget deficits, debt servicing  and surge in current account balance as signs of  a positive trajectory for the economy.

Cardoso also announced a  rise in monthly diaspora remittances inflows by International Money Transfer Operators (IMTOs) from $250 million in April, to $600 million in September.

This is projected to hit $1 billion by December.

 The banks are offering other products aimed at boosting dollar inflows from the Diaspora.

“We put our sights on increasing the inflows, the remittance inflows to $1 billion monthly and I am confident that we will get there. We are already at $600 million monthly inflows in September, from $250 million in April,” he said.

Fighting inflation remains a priority, he said.

This is because of the negative effects on the people’s purchasing power, living standards, particularly of the poor and the most vulnerable.

“Our priority is to ensure that critical investments must go on, so that the economy has a chance to grow, because at the end of the day, it is growth and job creation that lead to reduction in poverty, which is the major aim of the economic policies and strategies of President Bola Tinubu,” he said.

Read Also: Edun: Improved oil production will boost FX inflows

More  help is on the way  for the poorest and most vulnerable

He said that as the gains of market pricing of foreign exchange and petrol will flow through, there will be more help for the poor and the most vulnerable.

Edun said  government was investing  massively  in agriculture and food security  to ensure enough food for the people.

He said:“ We have diligently identified the small scale farmer- 600,000 farmers- that will farm about one million hectares in November, planting of wheat in January and February and planting of rice to ensure that we have a good dry season harvest.

“That will eventually lead to increased output, availability and affordability of food. Let’s remember that food represents 50 per cent of the consumer price index, so success in this area will help to drive down inflation.”

He said government’s efforts, plus steps being taken by the CBN, would bring inflation down and drive down interest rates.

Speaking on the gains of the World Bank,IMF annual meeting,Cardoso said it afforded Nigeria  an opportunity to discuss, exchange views and explain to many of the participants the ongoing economic reforms in the country.

He said the process of engagement also created an opportunity of trust for  investors in the domestic economy.

“The Central Bank has been reassuring investors, which is what will eventually  lead to more foreign inflows to the economy. And it is in that light, quite frankly, that we also engaged with a lot of the Nigerians in diaspora, and were able to come to an understanding on how we could raise dollar inflows to the economy,” he added.

He said the CBN embarked on bold and necessary reforms to return to the path of monetary policy orthodoxy, as well as remove observed distortions in the foreign exchange market.

The CBN boss said the apex bank’s efforts have yielded significant gains as volatility in the foreign exchange market has abated measurably and remittances have also increased significantly.

“We have achieved increased transparency and improved overall supply in the foreign exchange market, leading to reduced arbitrage and speculative activities and eliminated the front loading of foreign exchange demand,” he said.

Cardoso said the CBN recapitalisation policy has prompted deposit money banks to strengthen their financial positions, a process expected to result in a more robust and resilient banking sector by March 2026. The exercise is also expected to support the realisation of the $1 trillion economy by 2030.

“Our path forward includes consolidating and sustaining current progress through an efficient, transparent market system and deepening financial and economic inclusion, particularly for small businesses, households, women and young people across Nigeria, by leveraging smarter technologies and remote banking solutions,” he said.

“We recognise the continued support of our key stakeholders, including investors, banks, Nigeria diaspora and businesses with our counterparts on the fiscal side.”

• .Govt okays $600m funding for youth entrepreneurs

The Federal Government has explained the rationale behind its continued investment in women-led businesses and support for the entrepreneurial skills of youths.

Speaking during a panel interview at the World Bank/International Monetary Fund (IMF) Annual Meetings in Washington D.C, Minister of Finance and Coordinating Minister for the Economy, Wale Edun, rolled out Nigeria’s ambitious plans for youths and women entrepreneurs.

This follows the World Bank Group’s interests toward implementing Gender Strategy 2030, a set of actions and concrete goals that aim to boost economic opportunities for more women, which Nigeria fully supports.

The targets, unveiled at a flagship event during the 2024 World Bank Group Annual Meetings, will focus on use of broadband, social protection, and access to capital. These efforts will contribute to one of the three pillars of the Gender Strategy, which is dedicated to expanding and enabling women’s participation in the global economy.

According to the President of the World Bank Group, Ajay Banga:“When we increase women’s economic participation, it not only boosts the global economy, but also strengthens families and communities.

“Through economic empowerment, we are building a ladder out of poverty and extending hope and dignity as far as possible.”

By 2030, the World Bank Group aims to enable 300 million more women to use broadband, unlocking essential services, financial services, education, and job opportunities; support 250 million women with social protection programs, focusing especially on the poorest and most vulnerable and provide 80 million more women and women-led businesses with capital, addressing a critical constraint to entrepreneurship growth.

Edun said that by empowering the Nigerian female population and giving them the same access that is given to men, the whole society will be better off for it.

He said: “In Nigeria, we have been deliberate. We have a national action plan for the economic empowerment of women. It was launched recently by the President. But what it points to is that it is a deliberate commitment, and it comes from the very top.”

He lauded the World Bank for the Nigeria for Women Project, which is currently in six states and to be rolled out in even more states.

“It is one project that people around the world should take the opportunity to come and see and learn from. What it does, is it puts women in women affinity groups. And within those groups, about 22,000 women learn, train, get funding, education for their businesses,” he said.

Read Also: Edun: N10tr savings from subsidy removal for infrastructure, others

Edun said women in the group fund themselves, through group savings schemes whereby they in turn lend to each other. “And that has proved a very successful model for helping those women to get on their feet, get a chance to be entrepreneurs, and of course, learn about life skills across the board,” he said.

He said that in Nigeria, 49 per cent of the population are women, with the World Bank support helping them to stay in education, provide training, support funding for those who want to become entrepreneurs, and provide skills development for others.

The minister said that the government recognises the importance of the digital space, and has committed around $600 million of funding into the digital program called the Digital and Creative Enterprises sector.

He said around 30 per cent of the fund is earmarked for young women’s startup capital, technology training, and general skills development.

“These are very deliberate, and targeted initiatives aimed at ensuring that we empower women over the normal schooling system, what the traditional system, and what the culture in which they are in would do for them,” he said.

He said the scheme is aimed to empower entrepreneurs within the 15 to 35 years old bracket.

 “And of course, the results are likely to be phenomenal, because these are talented, these are ambitious, these are energetic people, and what they want is that chance to show what they can do, that help and that support to get on the ladder to success,” he said.

…as Kyari projects Nigeria’s agric sector for major boost with SAPZ programme

The success of the Special Agro-Industrial Processing Zones (SAPZ) programme is crucial to stabilising and growing Nigeria’s economy, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said.

The SAPZ-1 High-Level Implementation Acceleration Dialogue and State Steering/Technical Committee Workshop was organised by the Federal Ministry of Agriculture and Food Security, in collaboration with Development Financing Institutions (DFIs), including the African Development Bank (AfDB), International Fund for Agricultural Development (IFAD) and the Islamic Development Bank (IsDB).

Speaking at the event, Edun said food production plays a vital role in reducing inflation, and interest rates, and strengthening the exchange rate, noting that food accounts for 50% of the Consumer Price Index, making it a key factor in the country’s economic stability.

Edun expressed confidence that the SAPZ programme will achieve its potential, driving Nigeria’s agro-industrial development and modernizing the economy, adding that the programme is part of President Bola Ahmed Tinubu’s macroeconomic stabilization efforts, which have already shown success in reducing inflation and growing reserves.

“Food is 50% of the Consumer Price Index. In fact, we would say food is the core index, but it has sort of become the non-core because it has become variable, become unpredictable. But you can imagine we have inflation over 30% as we know, coming down as we know.

“You can imagine what a real, successful food production outcome would do to bring down inflation, and that will bring down interest rates, that would strengthen the exchange rate, and it would enable a basis for you, the private sector amongst us here, to invest even more, because it will become affordable to borrow.

“So it is on the basis of successful production that we can now look at exports that we can now look at the support to the trade balance, support to the foreign exchange reserves that agriculture

can and does mean, but in the initial phase that we are in now, it is all about providing food at affordable prices to Nigerians, but that’s the very short term, and we’re approaching it in a very determined manner.

“Likewise, let me pivot to the fact that with inflation coming down, with growth returning to the economy, with the reserves growing, with the exchanges stabilizing, success is being had under Mr. President’s macroeconomic, macro-physical stabilization and immediately, the pivot is to growing economy and that’s where this SAPZ cannot, must not and, will not in any way disappoint, and they will achieve their potential because that’s the basis of Nigeria’s agro-industrial effort at modernizing the economy and growing it”, he said

The minister also highlighted the importance of the oil and gas sector, citing the $10 billion investment by ExxonMobil as an example of growing investor interest. Domestic refining has also returned, providing a range of petrochemical-based raw materials for various industries.

The SAPZ program, supported by the African Development Bank, International Fund for Agricultural Development, and Islamic Development Bank, aims to increase agricultural productivity and competitiveness. With implementation already underway in seven states, the program is expected to create 400,000 direct jobs and 1.6 million indirect jobs.

Edun emphasized the need for the program to deliver on its promise of providing affordable food to Nigerians, supporting exports, trade balance, and foreign exchange reserves. He stressed that achieving these goals would have a profound impact on the economy and improve the lives of Nigerian citizens.

In his address, the Minister of Agriculture and Food Security, Abubakar Kyari said the SAPZ programme is expected to revolutionize Nigeria’s agriculture sector, saying it is designed to increase food production, create jobs, and stimulate economic growth.

The programme, which will implement the design, build and operate (DBO) model, is projected to yield significant benefits, including the creation of 500,000 direct and indirect jobs within program operations, and 2.5 million temporary jobs along infrastructure development and related services.

Read Also: Economy on the right path, says Edun

Additionally, the SAPZ programme aims to improve food security by adding metric tons of food to the nation’s food basket. Staple crop yields are expected to increase by 50-100%, up from current levels of 5-10%. Post-harvest losses will also be reduced from 45% to 20%.

According to Kyari, the SAPZ programme is a cornerstone of President Bola Ahmed Tinubu’s agenda for food security, agro-industrialization, and inclusive economic growth.

“As a country, we are at a pivotal moment and the decisions we take today and tomorrow will determine the success of this initiative”, he stressed.

The Director General of the Nigeria Country Department at the African Development Bank (AfDB),  Dr. Abdul Kamara, called for strengthened efforts to accelerate the implementation of the Special Agro-Industrial Ecosystem Zones (SAPZ) program in Nigeria.

Dr. Kamara emphasised the transformative potential of the SAPZ program to boost Nigeria’s rural economy and advance industrialisation.

H acknowledged the commitment of the Nigerian government and various international development partners, including the AfDB and IFAD, in financing the first phase of the program, which amounts to $538 million.

He highlighted the program’s focus on climate-adapted infrastructure, agricultural productivity, enterprise development, and job creation.

“The SAPZ program has the potential to create 400,000 direct and indirect jobs, particularly for youth and women, and reduce post-harvest losses from 50% to between 10% and 20%”, he noted.

While noting that phase One of the program, launched in December 2021, covers seven Nigerian states—Cross River, Imo, Kano, Kaduna, Kwara, Ogun, and Oyo as well as the Federal Capital Territory (FCT), he said about 1.5 million households are expected to benefit directly from the initiative, which targets agri-businesses, smallholder farmers, and agripreneurs.

He also cited Ethiopia’s success in agricultural transformation through similar programs, expressing confidence that Nigeria can achieve self-sufficiency in key crops and boost agricultural exports.

 “We must move towards value addition and wealth creation, and the SAPZ is the answer to that”, he stated.

The AfDB and its partners remain committed to supporting Nigeria’s agricultural transformation, with plans for Phase Two of the program in development.

 Dr. Kamara encouraged stronger partnerships with the private sector to ensure the successful implementation of the SAPZ program, which aims to unlock Nigeria’s competitive advantage in agriculture and contribute to national and regional economic growth.

In her remarks, the Country Director of the International Fund for Agricultural Development (IFAD), Dede Ekoue, expressed its strong commitment to supporting the Special Agro-Industrial Processing Zones 1 (SAPZ 1).

Ekoue also recognised the active role of the Executive Governors of Kano and Ogun States, which are pivotal partners in the SAPZ initiative.

Highlighting the efforts in Kano, she said IFAD is currently working with the state government on an accelerated pilot project aimed at boosting rice and tomato farming while improving the connection between farmers and off-takers.

This effort, she said, has resulted in the signing of off-take contracts, which mark significant progress for the agricultural sector.

In collaboration with the Islamic Development Bank, she said IFAD has also prioritised the procurement of agricultural inputs for farmers participating in the pilot program.

 Ekoue stressed that key actions such as strengthening coordination, enhancing technical capacity, and ensuring adherence to fiduciary and human resource guidelines are crucial for the successful implementation of SAPZ 1.

“IFAD remains dedicated to supporting Ogun State, with ongoing discussions about finalizing loan agreements that will kickstart SAPZ implementation”, she said.

The Senior Special Adviser to the President on Industrialization, Professor Banji Oyelaran-Oyeyinka, African Development Bank Group, expressed concern that the country has not succeeded in achieving either the Green Revolution or the Industrial Revolution.

Oyelaran-Oyeyinka lamented that agriculture is characterized by low yield, a situation that he said Europeans exited many years ago.

“When you have all the right factors, mechanization, high-yielding varieties, fertiliser, human skills, and all of that combined, you don’t need a whole army of people on the farm.

“Nigeria can indeed double its GDP in the next 10 years, and this is why we identify the special industrial processing zone”, he said.