Nigeria must evolve an effective and efficient mechanism of administering public resources amid dwindling revenue profiles and the attendant cash flow challenges, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said.
The minister, who noted that the challenges of low revenue flow called for prudent management of available resources, urged the stewards and managers of public resources – internal auditors and others – to initiate reforms that would ensure accountability, transparency and blockage of leakages.
Edun, who was represented by the Permanent Secretary, Special Duties Department, Federal Ministry of Finance, Mr. Okon Udoh, spoke at the opening of the Fourth Internal Auditors’ retreat on “The role of internal auditors in public financial management reforms” in Abeokuta, the Ogun State capital
According to him, the Office of the Accountant-General of the Federation (OAGF) was already championing prudent management of the public resources.
Governor Dapo Abiodun, who declared the retreat open through his deputy Mrs. Noimot Salako-Oyedele, identified accountability, transparency and probity as key and pivotal elements of good governance.
The minister charged the resource persons to chart a robust path that would bring about far-reaching benefits to all tiers of government, regarding efficient and effective administration of the commonwealth.
He said: Judging from the theme of the retreat, ‘Enhancing efficiency and effectiveness in the administration of public resources – the role of the internal auditor,’ it is indeed very evident that the treasury is demonstrating full knowledge of the fire needs of the nation.
“It captures the mood of the nation given the dwindling revenue profiles of the country and the attendant challenges on the cash flow.
“Indeed these challenges call for prudent management of what is available through the public financial management reforms as being developed and coordinated by the office of the Accountant-General of the Federation.
“Therefore, we must all devise better, more effective and robust administrative mechanisms that will reduce, if not eliminate waste and corrupt tendencies by using effective reforms.’
Abiodun said his administration will continue to ensure probity and judicious application of public funds and other resources through the blockage of all leakages in the state financial architecture.
He urged participants to put into good use, knowledge garnered at the retreat as representatives of various Ministries, Departments and Agencies (MDAs) at the federal, states, and local government levels.
The Federal Government has said the introduction of Compressed Natural Gas (CNG) buses under the Presidential CNG Initiative (PCNGi) will lead to a substantial reduction in transportation costs, ultimately helping to curb inflation.
Finance Minister and Coordinating Minister of the Economy, Olawale Edun, stated this during a visit to the JET Motor Company (JET) Assembly Plant in Lagos, where CNG buses are being assembled.
According to a statement on Saturday by Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, Edun noted he had seen the vehicles being assembled, expressing confidence that the benefits of the initiative will soon be accessible to Nigerians.
“I have come to see the CNG buses that Nigerians are asking about. I have seen them. I have tested them and driven them. I have seen them being assembled. The benefits will soon be available to Nigerians,” Edun said.
Edun highlighted the significant cost savings that CNG buses offer compared to their petrol-powered counterparts.
“Two critical aims will be achieved. Whereas it costs about N55,000 to fill a 15-20 seater buses with petrol, it will cost between N12-15,000 to fill a CNG bus of the same capacity. This is three times, if not four times less. This is a huge savings that will help reduce transport costs and at the same time, help reduce inflation,” he said.
He said the PCNGi is about affordable mass transit.
Edun praised JET’s employment of local talents in the assembly of the vehicles.
The chairman and founder of JET, Chidi Ajaere, took the Minister round during the visit.
Also on hand were the CEO of JET motor company, Engr Derek Ewelukwa and other members of the JET team, such as Sanjay Rupani of the Technical development department and Ebimo Ofongo, the plant manager.
Present also were Tosin Coker, Commercial director PCNGi and Joseph Osanipin, Director General of the National Automotive Development and Design Council.
Ajaere commended President Bola Tinubu for his initiative in promoting local production of the CNG vehicles and the entire PCNGi team’s resolve to make the project a success.
JET was established in 2018 to build Electric Vehicles (EV) vans, pickups and CNG/Petrol buses tailored to meet Nigeria’s unique transportation needs.
The company aims to transition from Semi Knocked down components to completely knocked Down components in the next three to four years.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, inaugurated the new board members of the National Insurance Commission (NAICOM) in Abuja on Tuesday.
During the ceremony, Edun emphasised the critical role the insurance sector plays in stabilising the economy but acknowledged the immense responsibility entrusted to the board.
“The weight of this responsibility and the significance it holds is not lost on me,” he said.
He expressed full confidence in the board’s ability to deliver, citing their proven track records and experience.
Edun noted the nation’s long-term saving potential and its demographic advantage with a youthful population and urged the board to leverage these factors to drive economic growth.
“Effective resource utilization within the insurance sector is crucial,” Edun stressed.
The board’s inauguration follows President Bola Tinubu’s approval of their appointments on April 19th.
The new board, led by chairperson Ms. Halima Kyari; includes Mr. Olusegun Omosehin (Commissioner for Insurance); Mr. Olawoye Gam-Ikon (Deputy Commissioner, Technical Operations); Dr. Usman Jimada (Deputy Commissioner, Finance and Administration); Dr. Miriam Kachikwu; Mr. Adeniyi Fabikun and Mr. Umar Mohammed.
Tinubu had emphasised the importance of probity in the insurance sector.
The new NAICOM board is tasked with ensuring a safe, sound, and stable industry while protecting policyholders, serving the public interest, and fostering trust within the sector.
NAICOM, established in 1997, is responsible for regulating and overseeing the Nigerian insurance industry, ensuring consumer protection and adherence to best practices.
The Commission’s Chairman. Kyari, upon receiving the appointment on behalf of the board, expressed gratitude for the President’s trust and their team’s commitment to fulfilling their mandate.
“We are a united team, committed to upholding the trust placed in us,” Kyari declared. “Our loyalty will remain steadfast to the directives entrusted to us.”
The Permanent Secretary of the Ministry of Finance, Mrs. Lydia Jafiya, urged them to fulfill their responsibilities with diligence.
In Nigeria’s complex economic landscape, effective fiscal management and debt strategy are paramount. Finance Minister Coordinating Minister of the Economy Wale Edun’s leadership has been pivotal amid challenges like revenue generation, inflation and infrastructure needs. This report examines Edun’s multifaceted approach to economic stewardship, emphasising fiscal resilience and debt management. Against global uncertainties, Edun aims to balance short-term financial pressures with long-term sustainability. Assistant Editor NDUKA CHIEJINA reports
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stands as a beacon of pragmatic economic stewardship, weaving together innovative strategies to propel economic growth. From championing social consumer credit programmes to spearheading the modernisation of revenue collection systems, his leadership is defined by a rare blend of foresight and practicality.
Edun’s initiatives reflect a nuanced understanding of both local imperatives and global dynamics, ensuring that fiscal policies resonate with Nigeria’s diverse needs while aligning with international trends. Whether addressing revenue challenges, navigating foreign exchange constraints, or driving trade facilitation initiatives, his interventions prioritise efficiency, transparency and unwavering accountability. Edun’s vision extends beyond mere management; it encompasses transformation, laying the groundwork for a resilient and dynamic economy that empowers all citizens. Through his steadfast commitment to progress, he not only navigates economic complexities but also shapes them, leaving an indelible mark on Nigeria’s trajectory towards prosperity.
The withdrawal of fuel subsidy under the Bola Ahmed Tinubu administration marks a significant policy shift aimed at bolstering fiscal sustainability and prioritising efficient resource allocation. Edun has provided insights into the rationale behind this decision and its implications for government finances and service delivery. His remarks underscore the substantial financial burden that fuel subsidy imposes on the government, estimated at £1.6 billion monthly at its peak. By removing this subsidy, the government stands to save significant resources, redirecting them towards addressing pressing needs and promoting economic development.
Edun’s decision to eliminate fuel subsidies has yielded a significant boon for the government, with monthly federation revenue soaring to an average of £2 billion. This influx of funds presents an invaluable opportunity to channel resources towards critical infrastructure projects, bolstering social welfare initiatives, and addressing other priority areas crucial for national development. Moreover, the removal of fuel subsidies is poised to transform the financial landscape of state governments, granting them enhanced fiscal autonomy. This newfound flexibility equips them to better address the diverse needs of their constituents across essential sectors like healthcare, education, infrastructure, and poverty alleviation.
From a macroeconomic perspective, ceasing fuel subsidies underscores the government’s commitment to fiscal prudence and efficacy. Subsidies have long been criticized for distorting market dynamics, fostering inefficiency, and draining public resources. By phasing out fuel subsidies, the government signals its dedication to streamlining public expenditure and fostering sustainable economic growth, paving the way for a more resilient and prosperous future.
Indeed, the decision to terminate fuel subsidies is not without its complexities and potential repercussions. Critics rightly point out that the removal of subsidies might lead to an increase in fuel prices, which could directly impact the cost of living for everyday citizens and exacerbate inflationary trends. Furthermore, the success of this policy pivot relies heavily on transparent communication and stringent accountability in managing public finances. It is essential for the government to demonstrate prudence and integrity in the allocation of savings generated from the discontinuation of fuel subsidies. These funds must be directed towards initiatives that benefit all segments of society and contribute to holistic development.
Navigating these challenges demands a delicate balance between economic imperatives and social welfare considerations. Effective policymaking necessitates not only foresight and pragmatism but also a genuine commitment to the well-being of the populace. Therefore, it is incumbent upon the government to implement measures that mitigate any adverse effects of subsidy removal while maximizing the long-term benefits for the nation as a whole.
Ways and Means: A balancing act
Mr. Edun’s stance on the contentious issue of the Central Bank of Nigeria’s (CBN) use of Ways and Means to finance government deficits has sparked considerable debate. While acknowledging the legitimacy of this financing tool, concerns have been raised regarding its extensive utilisation, which has the potential to fuel inflation and compromise monetary independence. In response to these apprehensions, Mr. Edun has emphasised the importance of transparency and accountability in the management of Ways and Means. He has pledged to work closely with the CBN to establish a transparent framework for its use, thereby ensuring responsible financial management. However, critics argue for more concrete measures and a defined timeline to reduce reliance on this mechanism.
The announcement of a forthcoming audit of the N23 trillion Ways and Means debt represents a significant step forward. This audit is poised to provide much-needed transparency, offering insights into the government’s outstanding obligations and paving the way for the formulation of a sustainable long-term repayment strategy. Moreover, Mr. Edun’s proposal to eliminate “nuisance taxes and levies” from the system is a welcome development. By creating a more business-friendly tax environment, this initiative has the potential to expand the tax base and generate additional revenue, thereby reducing the necessity for Ways and Means financing in the future. Overall, Mr. Edun’s proactive approach to addressing concerns surrounding Ways and Means reflects a commitment to fiscal prudence and transparency. By pursuing measures to enhance accountability, streamline tax policies, and conduct a thorough audit of outstanding debts, he endeavors to foster a more stable and sustainable economic framework for Nigeria’s future growth.
Furthermore, the government’s decision to utilize Nigerian Treasury Bills (NTBs) and Bonds issued in 2024 as a means to partially repay Ways and Means advances demonstrates a commitment to diversifying funding sources. This strategic shift, if maintained, has the potential to decrease reliance on CBN lending, thereby promoting fiscal sustainability and bolstering monetary independence. The government’s proactive approach to reining in Ways and Means advances aligns with the Central Bank of Nigeria’s (CBN) stated goal of managing liquidity in the system and controlling inflation. Excessive money creation through Ways and Means can indeed exacerbate inflationary pressures, underscoring the importance of addressing this issue.
Mr. Edun’s acknowledgment of the necessity for collaboration between fiscal and monetary authorities to combat inflation is a welcome development. Effective communication and coordinated policy measures will be crucial in achieving this shared objective and maintaining macroeconomic stability. The finance minister’s firm stance on the unsustainability of funding the federal budget through Ways and Means advances represents a significant shift in mind-set. Identifying and implementing more sustainable methods for financing government expenditure is essential for ensuring long-term economic stability and fostering investor confidence in Nigeria’s fiscal management.
Indeed, despite the positive steps taken by Mr. Edun’s administration, significant challenges remain. The effectiveness of the planned audit and the specific details of proposed tax reforms are yet to be fully disclosed. Additionally, transitioning the government away from Ways and Means financing necessitates sustained discipline and a commitment to implementing alternative revenue generation strategies. While Mr. Edun has outlined a comprehensive approach to address the Ways and Means issue, his tenure as Minister is still in its early stages. The translation of these plans into concrete actions and the achievement of measurable progress will ultimately determine his success in addressing Nigeria’s economic challenges. The coming months will be crucial in assessing the effectiveness of the government’s strategy and its impact on the country’s overall economic stability.
Consumer credit: Fueling growth or a recipe for trouble?
During his tenure, Edun has championed strategic initiatives to fortify Nigeria’s economic resilience and empower its citizens financially. Central to his agenda is advocating for a social consumer credit programme, seen as transformative for enhancing affordability and driving demand. However, concerns arise regarding potential risks of increased consumer debt without promoting responsible borrowing and financial literacy. Thus, maintaining a delicate balance between facilitating credit access and safeguarding financial well-being is crucial.
Edun’s leadership is pivotal in implementing robust safeguards and financial education alongside the programme to mitigate risks and ensure sustainable growth. This vision aligns with broader efforts to foster inclusive growth and poverty alleviation. His involvement in enhancing the National Social Investment Programme demonstrates commitment to addressing poverty and improving livelihoods. Emphasizing digital payment mechanisms underscores his acknowledgment of technology’s role in enhancing financial inclusion and efficiency. Overall, Edun’s tenure reflects a proactive approach to economic management, advocating for initiatives that foster sustainable development and empower all Nigerians financially.
Forex challenges: Charting a navigational course
As Coordinating Minister of the Economy, Mr. Edun has made addressing the persistent issue of foreign exchange scarcity a top priority. He advocates for a market-driven approach to FX management, aiming to establish a more stable and predictable exchange rate by allowing supply and demand to determine the value of the naira. However, achieving a truly market-driven FX system requires tackling various underlying challenges. These include the presence of multiple exchange rates, speculative activities, and limited export earnings, all of which contribute to FX volatility. Mr. Edun’s success in this endeavour hinges on his ability to address these issues comprehensively while instilling confidence in the FX market.
In addition to his focus on consumer credit and social investment programmes, he has been vocal about the need to address the foreign exchange challenges facing the Nigerian economy. He recognises the critical role of foreign exchange reserves in maintaining currency stability and achieving a positive balance of trade. Acknowledging Nigeria’s insufficient foreign exchange reserves, Edun advocates for a strategic shift towards bolstering export earnings and curbing import expenditure. This approach aligns with established economic principles, emphasising the importance of attaining a trade surplus to strengthen the domestic currency and promote economic stability.
The Minister’s focus on achieving a stable economy characterised by robust growth, low inflation and stable foreign exchange rates underscores a broader commitment to fostering an environment conducive to investment and productive activities. He rightly recognises that a stable currency is fundamental for attracting both domestic and foreign investment, as it reduces uncertainty and mitigates currency risk. However, Mr. Edun acknowledges that realising these objectives is an ongoing endeavour that requires collaborative efforts from all stakeholders. He appreciates the leadership of the President’s Chief of Staff, Femi Gbajabiamila, in spearheading economic reforms and expresses confidence in the government’s capacity to confront the prevailing challenges.
The Minister’s statements underscore the multifaceted nature of the FX challenges confronting Nigeria and highlight the importance of implementing comprehensive policy measures to address them. These may include initiatives aimed at promoting export-oriented industries, enhancing the competitiveness of domestic manufacturers, and implementing prudent fiscal and monetary policies to uphold macroeconomic stability. During his participation in recent World Bank/IMF meetings, Mr. Edun has actively advocated for Nigeria, pitching the nation to rating agencies and foreign investors. The optimism expressed by rating agencies and the increasing interest from foreign investors are encouraging signs. The influx of Foreign Direct Investments (FDIs) in recent times has had a positive impact on the health of the naira, leading to its appreciation over the past month. These developments signify growing confidence in Nigeria’s economic prospects and underscore the potential for sustained growth and stability under Mr. Edun’s leadership.
Single Window Initiative: Streamlining for efficiency
The Minister’s advocacy for the implementation of a single window initiative for trade facilitation is a testament to the government’s commitment to modernising and enhancing efficiency in trade processes. By consolidating various government agencies involved in trade clearance into one platform, this initiative aims to streamline import and export procedures, reducing bureaucratic bottlenecks and expediting trade flows to the benefit of businesses and the economy at large. The success of the single window project depends on effective collaboration between different government agencies and the development of a user-friendly, technologically advanced platform. Additionally, ensuring transparency and addressing potential corruption risks within the new system will be critical to its effectiveness.
Edun’s endorsement of the single window initiative underscores the government’s dedication to modernising trade facilitation processes and improving revenue collection efficiency. This initiative represents a significant departure from traditional customs procedures, aiming to streamline operations, minimise bureaucratic hurdles and reduce opportunities for corruption and revenue leakage. The Minister’s assertion that Nigeria stands on the cusp of transformative change in trade facilitation highlights the potential impact of the single window project on the country’s economic landscape. By embracing automation and electronic data transmission, the initiative seeks to accelerate clearance procedures, decrease processing times and enhance the overall ease of doing business.
Moreover, Edun emphasises that the single window project goes beyond mere technological upgrades; it is a strategic imperative aimed at strengthening customs operations and revenue generation. By consolidating all trade-related processes into a single platform, the initiative promotes transparency, accountability, and compliance, thereby bolstering the government’s capacity to mobilise resources and facilitate legitimate trade.
The Minister’s endorsement of the single window project extends to broader efforts aimed at enhancing revenue collection and reducing leakages within the tax system. The implementation of a single-window revenue collection system has the potential to centralise and streamline tax administration processes, minimising opportunities for evasion and enhancing the efficiency of revenue collection efforts. However, while the single window project holds promise as a transformative tool for both trade facilitation and revenue mobilisation, its successful implementation depends on several critical factors. These include adequate investment in technology infrastructure, capacity building for customs officials, stakeholder engagement, and ongoing monitoring and evaluation to address implementation challenges and ensure sustainability.
Moreover, Edun’s emphasis on the community-driven nature of the single window project underscores the importance of collaboration between government agencies, private sector stakeholders and international partners in driving its success. By fostering a conducive environment for public-private partnerships and knowledge sharing, the government can leverage collective expertise and resources to maximise the benefits of the initiative, further enhancing its impact on revenue generation and trade facilitation.
Revenue challenges: Plugging the leakages
Mr. Edun’s acknowledgment of Nigeria’s revenue challenges highlights the urgent need for comprehensive strategies to enhance fiscal sustainability. While acknowledging the necessity of broadening the tax base and combating corruption, he stresses the importance of translating these acknowledgments into concrete actions. Diversifying revenue sources beyond oil dependency and fostering tax compliance are vital for long-term fiscal resilience.
Edun’s emphasis on Nigeria’s low tax-to-GDP ratio underscores the need for broad tax reforms to improve revenue collection. His advocacy for infrastructure investment to generate non-oil revenues aligns with efforts to reduce dependence on volatile oil revenues. Additionally, Edun advocates for fiscal discipline to mitigate excessive borrowing and highlights the importance of centralising revenue collection to enhance efficiency and transparency. Proposals for tax rebate reforms and comprehensive cost-benefit analyses underscore his commitment to fiscal sustainability. Overall, Edun’s initiatives reflect a holistic approach to addressing revenue challenges, aiming to fortify Nigeria’s fiscal framework and promote sustainable economic growth and development.
Strategic grain release: Between affordability and stockpiling
The Minister’s proposal to release strategic grain reserves to tackle food price inflation reflects a proactive approach to addressing food insecurity and economic hardship. However, effectively managing reserves requires careful consideration to strike a balance, avoiding depletion while ensuring distribution to those most in need. The release of 102,000 metric tonnes of grains underscores the government’s commitment to aiding vulnerable populations. This initiative, part of a broader strategy, aims to provide immediate relief and lay the groundwork for long-term solutions.
Additional interventions, such as releasing another 60,000 metric tonnes, demonstrate sustained support for those in need. Yet, while crucial, these releases are just part of a comprehensive strategy requiring coordination across sectors. Effective implementation and distribution mechanisms, coupled with transparent governance, are essential to maximize impact and address root causes of vulnerability. The government’s responsiveness and readiness to mobilize resources highlight its commitment to tackling pressing challenges and building resilience within communities.
Debt management: Juggling commitments and growth
Mr. Edun’s emphasis on prudent debt management reflects the government’s commitment to alleviating immediate financial pressures and ensuring long-term fiscal sustainability. By exploring the use of bonds and other financial instruments, the aim is to spread out debt repayments over an extended period, thus easing the strain on government finances. Furthermore, on the concessional loan front, the Minister has announced the securing of a $2.25 billion single-interest loan from the World Bank. This loan, with favourable terms including a 40-year term and a 10-year moratorium at a low 1% interest rate, underscores efforts to access financing on favourable terms to support critical initiatives while minimising debt service costs.
However, concerns persist regarding the sustainability of Nigeria’s current debt level. Balancing debt service obligations with investments in infrastructure and social programmes poses a significant challenge for Mr. Edun. Effective management of these competing priorities will be crucial in ensuring that debt remains manageable while addressing pressing developmental needs. As his tenure as Minister is still in its early stages, the translation of plans into concrete actions and measurable outcomes will indeed be the true test of his performance. Moving forward, the successful implementation of prudent debt management strategies alongside targeted investments will be essential in driving sustainable economic growth and development in Nigeria.
The Federal Government has outlined its strategic plan to counter the challenges posed by excess liquidity in the financial system, curb inflation and stabilise economy.
Minister of Finance and Co-ordinating Minister of the Economy, Mr. Wale Edun, stated this during a briefing at the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC.
Edun confirmed the administration’s commitment to tackling surplus money circulating within the economy, stating “We are determined to pin down Ways and Means to alleviate the pressure of excess money in the system.”
This measure, he explained, is aimed at facilitating a collaborative effort between fiscal and monetary authorities to reduce inflationary pressures and stabilize the exchange rate.
“We need to borrow less and focus more on domestic resource mobilisation,” Edun emphasised.
He stressed the urgency of improving tax revenue, citing Nigeria’s tax-to-GDP ratio of 10 percent as insufficient compared to regional averages, signaling the need for comprehensive reforms.
“At 10 percent to GDP, what should I say? It would appear as if some people are not paying their taxes,” Edun remarked, underscoring the importance of leveraging technology and policy reforms to optimize tax collection efficiency.
The Minister outlined plans to streamline the tax system by consolidating revenue streams to maximise returns from key tax heads, ultimately doubling tax revenue within three years.
“If we eliminate the large number of taxes and bill people properly, we will gain in terms of the people’s willingness to pay and you will collect more revenue,” Edun said, advocating for a strategic overhaul of the tax framework to enhance compliance and revenue generation.
The Minister stated that the government is tackling agricultural issues worsened by insecurity, which is affecting farmers’ ability to reach their farms.
The government, he said, is working with organizations such as the African Development Bank (AfDB) to create agro clusters to increase food production nationwide.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun on Tuesday, March 19, launched the 2023/2024 Human Development Report (HDI).
The report was put together by the United Nations Development Programme in Nigeria.
The 2023/24 Human Development Report (HDR), titled Breaking the Gridlock: Reimagining cooperation in a polarized world, reveals a troubling trend.
The report revealed that the country has not done well in all areas of Sustainable Development Goals.
It noted that there was a rebound in the global Human Development Index (HDI) – a summary measure reflecting a country’s Gross National Income (GNI) per capita, education, and life expectancy – has been partial, incomplete, and unequal.
Speaking at the launch, Edun said: “The HDR is a rallying cry that we can and must do better than this, and it charts a way forward for conversations on reimagining development cooperation for a better world. In re-imagining cooperation, international financial architecture ought to be structured to proactively support the implementation of the Sustainable Development Goals (SDGs) and the realization of human rights.
He added: “The only way to facilitate such a structure is through ambitious reforms, starting with more inclusive, representative and, ultimately, more effective global economic governance.”
For the last 34 years, UNDP has released the Human Development Report and Index annually, ranking all countries by health, education and living standards. In the last 3 decades, UNDP has produced more than 800 global, regional, national, and sub-national reports, and organized hundreds of workshops, conferences, and other outreach initiatives to foster human development.
Human development is about expanding the richness of human life rather than simply the richness of the economy. It focuses on people and their opportunities and choices.
On his part, UN Resident and Humanitarian Coordinator, Mohamed Fall said: “The HDR argues that polarization and mismanagement of cross-border interdependencies are at the root of many contemporary challenges, ranging from debt distress in numerous low- and middle-income countries to threats to food security to a pervasive sense of disempowerment around the world.
He further added: “Polarization within and amongst our countries is creating “a global gridlock,” and preventing us from forging international cooperation towards addressing our shared challenges. This polarization, whether at the sub-national, national, regional, or global levels signifies an erosion of trust, that is dividing societies into opposing camps and poisoning domestic and international cooperation.”
The HDI is projected to reach record highs in 2023 after steep declines during 2020 and 2021. But this progress is deeply uneven. Rich countries are experiencing record-high levels of human development while half of the world’s poorest countries remain below their pre-crisis level of progress.
While presenting her remarks, the Resident Representative for UNDP Nigeria, Ms. Elsie G Attafuah said, “Since its [HDR] inception, the Human Development Report has become a flagship knowledge product. This unique annual report has not only helped to establish a new broad definition of development but also to evaluate the progress made and highlight key challenges drawing on statistics.
“This report encourages political leaders and development practitioners around the world to keep raising our ambitions and following up on areas that need support. Ms. Attafuah further added: “The Report calls us to change course, otherwise the world may not recover from the decline in human progress.
“The repercussion of not changing course and removing the gridlock is in the additional lives that will be lost, in opportunities that will be forgone, and in feelings of despair.
“The report presents ways forward that hinge on reimagining cooperation in ways that do not assume away divergent interests or opinions but work with them to deliver global public goods – where we all stand to benefit.
“This report opens a new trilogy of human development reports that will explore further the layers of uncertainty identified in the latest HDR: how to address polarization (2023-24), shape our shared digital future to advance human development (2025), and marshal human aspirations to navigate the Anthropocene (2026).”
Also, present at the launch were the Minister of Budget and Economic Planning, Sen. Abubakar Bagudu, Honourable Minister of State for Labour and Employment, H.E Nkiruka Onyejeocha, Honourable Minister of Youth Development, Dr Jamila Bio Ibrahim and the UN Resident and Humanitarian Coordinator, Mr. Mohamed M.M Fall.
UNDP published the first Human Development Report in 1990 with an introduction of a new Human Development Index (HDI) to measure development progress. The underlying principle of the HDI, considered radical in 1990, was very simple: national development should be measured not simply by per capita income, as had long been the practice, but also by health, education and other important indicators.
Minister of Finance and Coordinating Minister for the Economy Wale Edun yesterday shed light on the two-pronged strategy being applied by the Federal Government to combat foreign exchange shortage.
The plan, the minister revealed, hinged on attracting foreign investors and boosting government revenue.
He made the revelation in a podcast “BC Advisory Dialogue” hosted in Abuja by Bruit Costaud in collaboration with Ballard Partners.
The Central Bank of Nigeria (CBN), Edun explained, shifted its focus from development funding to tackling inflation, a move the government believes, is essential for economic stability.
With inflation high and government borrowing rates low, the government raised its own interest rates on bonds. This higher interest rate attracted foreign investors seeking better returns, and they in turn injected much-needed United States (U.S.) dollars into the local economy.
The minister said: “The CBN indicated that they were stepping back from intervention funds or development financing, and they were focusing on their core mandate fighting inflation because without inflation coming down you can’t have a stable economic environment and CBN signalled that they felt that inflation will be on average in 2024 at 21.5 per cent.
“At the time Treasury Bill rates were at 13 per cent and government was selling securities and bonds at the top level around 13 per cent or even lower, way below the targeted rate of inflation; so, the DMO immediately followed that signal and raised their own interest rate and that was by selling more bonds because the more you want to sell, the lower the price you have to accept, the higher the rate you have to be willing to pay and that automatically triggered the interest of foreign portfolio investors and it brought dollar liquidity into the system.
“The figures have been announced we all know but that is how that mechanism works and that has brought dollar liquidity which is much needed because there are some outstanding dollar obligations which need to be paid, suggesting that more foreign exchange are on their way into the country.”
On the fiscal side, the finance minister said that “Nigeria is capitalising on elevated oil prices. Oil production and sales have significantly increased compared to last year, bringing in more dollars.
“The government aims to raise tax revenue, currently lower than in neighboring countries.
“Economic growth is a key focus, with the government seeking to encourage investment in agriculture, manufacturing, and power generation.
“These sectors he said hold the potential to create jobs and strengthen the overall economy. Recent announcements included incentives to attract investment in the gas sector.”
Speaking to the performance of the Nigerian Stock Exchange (NSE), the minister said “this indicates investor confidence, but cautioned that the government desires a shift towards real-sector investment that creates jobs and produces goods.”
Acknowledging the rising cost of living, the minister said: “The government is finalizing a wage increase for workers. President Bola Ahmed Tinubu is also exploring unemployment benefits for young Nigerians.”
On the current economic challenges, Edun stressed the importance of collaboration in tackling the challenges, saying: “the federal government is working alongside states and Labour unions. While the CBN enjoys some independence, the president sets the overall economic direction.”
The minister attributed the rise in crude oil production from 1.25 million barrels per day (mbpd) to 1.65mbpd million barrels per day as against the million bpd to improved security in the Niger-Delta.
According to Edun, the quickest way to get revenue for critical infrastructure is to shore up earnings from the oil sector.
He said: “This is the quickest way of giving the government the needed revenue to address our urgent needs.
“The government doesn’t have enough revenue for critical infrastructure and social services which are crucial to Nigerians now.
“The prices are still elevated and as you know in June 2023, the oil production and sales were roughly 1.25 million barrels per day.
“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary.”
The Federal Government plans to surpass the N13 trillion it raked in last year from non-oil remittances by its agencies, Minister of Finance and Coordinating Minister for the Economy, Wale Edun, said yesterday.
Edun, who dropped the hint when he appeared before the Senate Committee on Finance, said that N100 billion had been remitted in January as against the N20 billion that was remitted into the Consolidated Revenue Fund of the Federal Government same period in 2023.
The Committee, chaired by Senator Sani Musa (APC, Niger East), is investigating the “Remittance of Internally Generated Revenue (IGR) by Ministries, Departments and Agencies (MDAs) and Evidence of Payment of one per cent Stamp Duty into the Consolidated Revenue Fund Account from 2020 to 2023.”
According to Edun, while the remitted revenue from June to December last year stood at N3.6 trillion, the collection for last year stood at N13 trillion.
Relying on the policies initiated by President Bola Ahmed Tinubu, the minister said: “What we can see is a substantial increase in remittances by MDAs and revenue generation agencies.
“We will keep this up and there will be a time we can give further data on this to the committee and the National Assembly.”
Edun, also spoke on the government’s one per cent Stamp Duty collection, saying that a total of N53 billion remitted in 2023 or an average of N3.7 billion every month.
The minister explained that the final tally exceeded the N44 billion target set by the National Assembly.
“This, I will say was a positive development. N44 billion was approved by the National Assembly, and the actual collection was N53 billion”, he told lawmakers.
Speaking briefly on capital and recurrent budget performance for 2023 and the first quarter of this year, Edun informed the lawmakers that N2.9 trillion was the capital spending in 2023.
For 2024, he disclosed that first quarter capital releases so far stood at N124 billion, while N581 billion had been spent on salaries and other recurrent expenditure, aside from the N71 billion released for overhead costs.
When asked about the N3.7 trillion the government allegedly lost to import duty waivers in 2023, the minister, who corroborated the records of the Nigeria Customs Service (NCS), said the Tinubu administration had introduced a new duty waiver policy to prevent leakages or losses.
Edun said: “This time around, all import duties would first be paid in full, while waivers would later be deducted and paid back to the affected importers.”
On the steps being taken to revamp the economy, Edun explained that the government has done a lot, including initiatives at stabilizing the naira against the dollar and the implementation of a more transparent social welfare scheme for the weak and vulnerable.
He said one of the major errors of the past, which brought the economy to its knees, was the free printing of the naira for eight years up to N22.7 trillion by the
The federal government on Wednesday, March 6, said it realised the sum of N13 trillion from non-oil remittances by its agencies in 2023, with a target to surpass the record by the close of 2024.
The Minister of Finance and Coordinating Minister for the Economy, Dr. Wale Edun, who made the revelation in Abuja said in January 2024 alone, over N100 billion had been remitted.
Edun noted that compared to the same period in 2023, only N20 billion was remitted into the Consolidated Revenue Fund of the Federal Government.
He made these assertions when he appeared before the Senate Committee on Finance, chaired by Senator Sani Musa (APC – Niger East).
The Committee is investigating the “Remittance of Internally Generated Revenue by MDAs and Evidence of Payment of 1% Stamp Duty into the Consolidated Revenue Fund Account from 2020-2023.”
Edun said while remitted revenue from June to December 2023 stood at N3.6 trillion, the total collection for the 12 months of the year was N13 trillion.
He told the panel that due to policies introduced by President Bola Tinubu, including digitalising operations for speedy transactions, the government was looking forward to higher non-oil revenue output by the end of December 2024.
“What we can see is a substantial increase in remittances by MDAs and revenue generation agencies.
“We will keep this up and there will be a time we can give further data on this to the committee and the National Assembly”, he said.
Edun also spoke on the government’s one per cent Stamp Duty collection, saying that a total of N53 billion was remitted in 2023 or an average of N3.7 billion every month.
The minister explained that the final tally exceeded the target of N44 billion set by the National Assembly.
“This, I will say was a positive development. N44 billion was approved by the National Assembly, and the actual collection was N53 billion”, he told lawmakers.
Speaking briefly on capital and recurrent budget performance for 2023 and the first quarter of 2024, Edun informed the lawmakers that N2.9 trillion was the capital spending in 2023.
For 2024, he disclosed that first-quarter capital releases so far stood at N124 billion, while N581 billion had been spent on salaries and other recurrent expenditures, aside from the N71 billion released for overhead costs.
When asked about the N3.7 trillion the government allegedly lost to import duty waivers in 2023, Edun who corroborated the records of the Nigeria Customs Service (NCS), said the current administration had introduced a new duty waiver policy to prevent leakages or losses.
According to Edun, this time around, all import duties would first be paid in full, while waivers would later be deducted and paid back to the affected importers.
He explained that paying the duties before deducting the waivers would address “the uncertainty on the process works”, adding that the old method of waiver application would be stopped and replaced by automation.
On measures to revamp the economy, Edun explained that the present administration has done a lot, including initiatives at stabilizing the naira against the dollar and the implementation of a more transparent social welfare scheme for the weak and vulnerable.
For instance, he said one of the major errors of the past, which brought the economy to its knees, was the free printing of the naira for eight years up to N22.7trillion by the administration of former President Muhammadu Buhari without a corresponding improvement in tangible production.
“The inflation is due largely to eight years of printing the naira, which was not matched by production”, Edun said.
To ameliorate the effects of the current hardship on Nigerians, Edun said the government had re-started the cash transfer of N75,000 to 15 million households by identifying beneficiaries, using Bank Verification Number (BVN) and National Identification Number (NIN) to reach almost 75million Nigerians for a three months duration.
Speaking earlier, the Chair of the Committee, Senator Musa, said the Senate called for the investigation because unstable oil prices meant that Nigeria had to source alternative revenue windows internally to be able it to provide services to the people.
“Volatility in oil prices and global economic challenges have made it necessary for us to explore our IGR sources.
“The days of excessive reliance on oil are gone. So, we have to explore other internal avenues, including agriculture as well as encourage voluntary tax compliance”, Musa said.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that President Bola Tinubu’s administration inherited a surge in food and general commodity prices from the previous government.
However, he emphasized the government’s commitment to reducing food prices and tackling the nation’s high inflation rate.
Speaking at the Public Wealth Management Conference in Abuja on Tuesday, February 20, the finance minister acknowledged the hardships faced by Nigerians and outlined measures taken to alleviate their suffering.
He revealed that, as part of these interventions, the government has released 42,000 metric tons of grains, with an additional 60,000 metric tons scheduled for release soon.
