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Tag: Wale Edun

  • Economic indices remain positive, says Edun

    Economic indices remain positive, says Edun

    The key positive indicators are signs that the economy is on the road to revival,  Minister of Finance Wale Edun said yesterday.

    The coordinating minister of the economy stated this yesterday during a post Federal Executive Council (FEC) briefing at Aso Villa.

    The Minister, who said he presented a memorandum to Council on how to strengthen the Nigeria Customs Service (NCS), explained the volatile indices that have beclouded the true state of the economy, adding that the administration had straightened out practices that had hitherto burdened the economy

    According to Edun, the country’s total debt stock in US dollar terms decreased by 15% in the first quarter of this year, a development he described as “very positive.”

    However, when factoring in exchange rate movements and domestic debt issuance, the total debt stock in Naira terms increased by 25%.

    The Minister emphasized that the government’s revenue collection had been robust, due to technology-driven initiatives. He said expenditure controls are also being implemented.

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    He noted that the federal government had not relied on ways and means to fund its operations, a departure from past practices.

    Edun highlighted that the current administration inherited a legacy of N22.7 trillion in outstanding ways and means, which are being audited and securitized. He explained further that despite this, the current ways and means deficit stands at N3.4 trillion, which is offset by operating surpluses from revenue-generating agencies.

    “I gave the Council a verbal briefing that I’m given now, and I will start by saying that when we interrogate the figures over the first quarter of this year, starting end of December and end of March. If we want to be positive, all we will say is that the glass is half full, we are halfway there. If not, we can be negative and try and say the glass is half empty.

    “Why do I say this? The debt stock, the total debt stock of Nigeria in US dollar terms fell by 15%. That is very positive, any rating agency, any creditor, any investor looking at that will see it as a positive move.

    “We’re a country that has petro-dollars. We have ability to earn in dollars. So it’s highly relevant, that we look at what is our exposure in dollar terms. On the other hand, given the exchange rate movements, even though there was like an N8 trillion increase in actual debt issuance, the total debt stock, when you count domestic debt which, as I said there was increase in issuance when you count the total external debt and domestic debt in Naira terms, it has increased by 25%.

    “That’s mainly due to the foreign exchange movement, which can change tomorrow, as we know. Linked to that is the all-important question of the government’s capacity to pay its way, debt, credit is all about the revenue to service and of course, to use those funds properly, judiciously, accountably and in a way that gives positive returns.

    “I can say quite categorically that under President Bola Tinubu, the federal government does not rely on ways and means in order to fund itself. At no time have we gone to Mr. President and requested permission to seek funding from Central Bank to pay anybody, be it external debt service, be it share capital cash calls, or any other of the liabilities that the government has.

    “As with all agencies, we are focused on ensuring that the revenue that is due to the federal government is collected robustly, using technology avoiding the blockages, which manual processing can cause and it has led to a very robust revenue effort and likewise, we are implementing expenditure controls, also very ably empowered by technology.

    “So within that context, what we have is that we had legacy, Mr. President inherited a legacy of N22.7 trillion in outstanding ways and means, which have been securitized on the eve of the entry of President Tinubu’s administration.

    “Naturally, we are auditing, we’re doing a forensic audit and interrogating that figure, because it’s a liability which we have to pay interest on, so any deficits that you might see, to the ways and means, to the consolidated revenue account, maybe automatic debits on a figure that is still being interrogated, but as a matter of fact, the current ways and means deficit is N3.4 trillion.

    “As I said, we collect the operating surpluses of revenue generating agencies by law under the Fiscal Responsibility Act and other legal guidelines and when we look at how much is outstanding, and how much is owed, we are actually positive.

    “The amount that is owed and that we are claiming far out exceeds the N3.4 trillion in Ways and Means and as I’ve said before, we do not rely on ways and means to pay salaries, we don’t rely on it to pay external debt servicing or other obligations. That is the situation, the finances of Nigeria have been revamped”, Edun said.

  • Nigeria will receive large part of $2.2bn World Bank loan soon, says Wale Edun

    Nigeria will receive large part of $2.2bn World Bank loan soon, says Wale Edun

    The World Bank board of directors will examine a $2.25 billion loan for Nigeria in two weeks, according to Wale Edun, minister of finance and coordinating minister of the economy.

    Speaking during Channels Television’s ‘Sunday Politics’ programme on June 3, Edun said the country would receive part of the funding soon.

    He said: “In two weeks’ time, the board of the World Bank will consider a $2.25 billion package for Nigeria of, like I say, virtually free money or almost grant funding.”

    According to Edun, there are no conditions attached to the loan, and it has an extremely low interest rate.

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    “A large part of it, $1.5 billion, is what they call ‘development policy operation’,” the minister said.

    “Essentially, it is in recognition of what has been done to stabilise the Nigerian economy and get it back on the path to growth and the funding will come virtually immediately.

    “At least, the one part of it will come virtually immediately after that board meeting.”

    He stated that the nation is optimistic and anticipating the loan’s disbursement.

  • Nation’s economy growing, says Edun

    Nation’s economy growing, says Edun

    Nigeria’s economy grew by three per cent in the first quarter of this year, Minister of Finance and Coordinating Minister of Economy Wale Edun, said yesterday.

    He said the growth rate surpassed both the population growth rate of 2.4 per cent and last year’s Gross Domestic Product (GDP) growth rate of 2.31 per cent.

    Edun spoke on the prospects of consistent economic growth and increased government revenue during the ministerial scorecard presentation in Abuja.

    He attributed the growth to the effective policies and strategies initiated by the Tinubu Administration.

    The minister highlighted the importance of agriculture in driving economic progress and reducing inflation, noting that the sector grew by 1.8 per cent in the first quarter of the year from a decline of 0.9 per cent in the same period last year.

    Edun said: “There is still significant untapped potential in this sector.

    “Talking to the Minister of Agriculture and Food Security, I learned that the ongoing dry season harvest is promising.

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    “Coupled with state-level initiatives, such as special agriculture processing zones, we expect a significant increase in food production.

    “This will not only boost the economy but also help tackle inflation, as food prices constitute 50 per cent of our inflation index.”

    Edun expressed optimism that a good wet season would further reduce inflation by increasing food availability, adding that lower inflation would allow monetary authorities to stabilise the exchange rate, lower interest rates, and spur investment.

    The minister said the chain reaction would boost productivity, create jobs, and ultimately reduce poverty.

    Edun said the sustenance of President Tinubu’s agenda, both at the state and federal levels, is crucial to growth and improvement in the living standards of Nigerians.

    The minister highlighted key initiatives of the government, including the protection of the poor and vulnerable during the time of high inflation.

    Edun, who chairs the presidential panel on social investment programmes, announced the restart of direct payments to the poorest households.

    He said the programme would assist, at least, 75 million Nigerians (15 million households) with N75 million in immediate payments.

    Edun said to ensure transparency, the programme would leverage a robust system developed in collaboration with various ministries, including Communications and Digital Economy, Health, and Youth.

    Edun alluded to a substantial revamp in revenue generation, underscored by the government’s ability to service its debts without resorting to borrowing, especially from the Central Bank of Nigeria (CBN) through Ways and Means.

    He said international and domestic debt obligations are being met promptly due to improved financial management and the National Assembly’s insistence on proper handling of public funds.

    The minister explained that Nigeria has cleared outstanding payments, including a $200 million shareholding in the Islamic Development Bank, which has restored international confidence and national pride.

    On wages, Edun clarified that the recently introduced wage award set a minimum standard for both the private and public sectors.

    He said the measure would ensure fair compensation and set the stage for ongoing discussions to reach satisfactory conclusions.

  • BREAKING: Nigeria’s economy growing, says Wale Edun

    BREAKING: Nigeria’s economy growing, says Wale Edun

    The Nigerian economy is experiencing a positive growth rate of 2.99 percent surpassing the 2.3 percent growth seen in the first quarter of 2023.

    Minister of Finance and Coordinating Minister of the Economy, Wale Edun made this known during the presentation of his ministry’s performance, one year into the administration of President Bola Tinubu in Abuja on Tuesday, May 27.

    This improvement in economic growth, Edun said highlights the effectiveness of President Bola Tinubu’s economic strategy.

    Edun noted that agriculture, a critical sector of the economy, is showing marginal growth. This sector’s progress is expected to play a significant role in combating inflation, especially through a favourable wet season harvest that should stabilize food prices. By managing the food price index effectively, the government aims to alleviate one of the major pressure points on inflation.

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    He said: “This growth in agriculture provides the monetary authority with the leverage needed to stabilize foreign exchange (FX) rates,” Edun explained. “By continuing on this path and intensifying our efforts, we are on track to lift many Nigerians out of poverty.”

    Revenue collection has also seen significant improvements, according to Edun.

    This enhanced revenue generation has enabled the government to service its debts without resorting to the Central Bank’s Ways and Means advances, a practice that has previously been a cause for concern regarding fiscal discipline and inflation.

    The finance minister emphasized that these positive economic indicators reflect the current administration’s commitment to sustainable economic growth and fiscal responsibility. The government plans to maintain this momentum to ensure long-term economic stability and prosperity for all Nigerians.

    Details shortly…

  • Fed Govt pledges robust pension management, improved welfare for retirees

    Fed Govt pledges robust pension management, improved welfare for retirees

    The minister of finance and coordinating minister for the economy, Wale Edun, has pledged the federal government’s commitment to improved pension management and enhanced retiree wellbeing.

    Edun’s remarks came during a working visit to the headquarters of the Pension Transitional Arrangement Directorate (PTAD) in Abuja. 

    The minister underscored the importance of strong public finance governance, stating that, “Our resolve is to ensure that the systems managing our pension funds are not only robust and efficient but also aligned with our broader economic goals of transparency and accountability.”

    The visit, according to a statement from the Ministry, represents a “historic initiative” in Nigerian pension management. 

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    Edun noted the government’s commitment to pensioners through “deliberate and timely increments” in pensions as well as a focus on eliminating pension arrears and ensuring all retirees receive their rightful entitlements.

    “This visit underscores President Bola Ahmed Tinubu’s unwavering commitment to pensioners’ welfare even amid essential economic reforms,” Minister Edun stated. 

    He reassured the staff of PTAD of the Ministry’s support for the recent pension increment, which he said aligns with the provisions of Section 173(3) of the Nigerian Constitution.

    The minister commended PTAD staff for their dedication and essential role in pension administration.  Discussions during the visit reportedly focused on “vital backend computation projects” aimed at streamlining and ensuring transparency in pension calculations.

    The minister’s assurance of continued support for recent pension increases and his focus on eliminating pension backlogs are positive indicators for Nigeria’s retirees. 

    The emphasis on “backend computation projects” further suggests a data-driven approach to ensuring accurate and timely distribution of pension benefits.

  • Nigeria eyes growth with offshore funds

    Nigeria eyes growth with offshore funds

    The Federal Government is pursuing a multi-pronged strategy that includes the issuance of a new Diaspora Bond, a World Bank loan facility and increased engagement with foreign direct investors in a bid to attract foreign exchange (forex) and bolster economic growth.

    The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed plans for a Diaspora Bond during the wrap-up press briefing following the 2024 World Bank-IMF Spring Meetings in Washington DC.  “There are Nigerians abroad who are doing very well. We want to attract those funds through a Diaspora Bond, an instrument we believe will be attractive to Nigerians abroad and foreign currency holders,” Mr. Edun said.

    The issuance of the bond, targeted for later this year, aims to capture a significant source of foreign exchange – remittances from Nigerians living abroad.

    Beyond the Diaspora Bond, Nigeria secured a $2.25 billion loan facility from the World Bank.  “This is practically a grant,” Mr. Edun emphasized, highlighting the favorable terms: a 40-year repayment period with a 10-year grace period and a low-interest rate of one per cent.

    The World Bank-IMF Spring Meetings provided a platform for Nigeria to engage with international investors also.

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    He said: “We’ve had the opportunity to speak with international portfolio investors and those seeking direct investments that create jobs.” He expressed optimism, stating, “The response from all of them has been one of greater confidence in our economic management and a stronger interest in investing.”

    The Finance Minister underlined the government’s commitment to tackling inflation. He pointed to the recent issuance of government securities at rates closer to the Central Bank of Nigeria (CBN’s) Monetary Policy Rate (MPR) as an example of collaboration between fiscal and monetary authorities.

    Mr. Edun outlined key areas where the administration is prioritizing growth.

    These include: agriculture, by distributing fertilizers and seeds to reduce food prices and ensure food security; power generation, by increasing power generation to 6,000 megawatts within six months; infrastructure development, particularly affordable housing through low-interest mortgages; revamping existing social programs and development of a comprehensive economic stabilization plan.

    While international funding is crucial, Mr. Edun emphasized the importance of private sector investment, both domestic and foreign. He reiterated President Bola Tinubu’s commitment to fostering a private-sector-driven economy that creates jobs and reduces poverty.

    The Minister highlighted the government’s engagement with a broad range of stakeholders, including: Multilateral organizations (World Bank, African Development Bank); Development banks; bilateral financiers; grant-givers and Foundations (e.g., Bill and Melinda Gates Foundation)

    Mr. Edun concluded by expressing optimism for Africa’s role in the global financial landscape.  “We secured an additional Chair position on the Board of Directors of the International Monetary Fund,” he announced. “This is a major win for Africa as a whole.”

    The Nigerian government’s multi-pronged approach to attracting forex and stimulating economic growth shows promise. Whether these initiatives achieve their intended goals remains to be seen, but the engagement with international institutions and a focus on private sector investment offer a ray of hope for a more prosperous future for Nigeria and Africa.

  • Gains of IMF/World Bank meetings, by finance ministry

    Gains of IMF/World Bank meetings, by finance ministry

    Last week’s World Bank, International Monetary Fund (IMF) Spring Meetings in Washington DC, United States (U.S.) offered a platform for the Federal Government to show Nigeria’s economic resilience, the Federal Ministry of Finance said yesterday.

    Finance Minister and Coordinating Minister of the Economic, Mr. Wale Edun, who led the delegation, emphasized the Nigeria’s role in pushing for Africa’s economic interests on the global stage.

    The ministry said the country stood out during the Spring Meetings as it garnered encomiums from world leaders for its proactive measures in the face of international challenges.

    The 2024 Spring Meetings, which held amidst a backdrop of persistent inflation and geopolitical tensions, underscored Nigeria’s ascent as a regional trailblazer in fostering sustainable economic practices.

    The ministry said: “Notably, the IMF and World Bank commended Nigeria’s robust efforts, citing the tightening of monetary policies and subsequent upward revision of the country’s growth forecast to 3.4 per cent this year as testament to the effectiveness of the government’s economic strategies.

    “Of particular significance was Nigeria’s ratification of the third chair for Sub-Saharan Africa at the IMF, a move aimed at amplifying the continent’s voice in international economic discourse.”

    Speaking at the meetings, Edun, who chairs the African Caucus, outlined the government’s multi-faceted approach to economic stability, highlighting initiatives geared towards bolstering key sectors such as agriculture, manufacturing, and electricity.

    The minister emphasized the dual purpose of the efforts – stabilising prices and reducing dependency on imports to secure the nation’s food supply.

    He was quoted as saying: “Our focus on agriculture, manufacturing, and electricity aims not only to stabilize prices but also to secure food and reduce dependency on imports.

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    “These initiatives, coupled with the inflation targeting policies of the Central Bank of Nigeria, are expected to reduce inflation by the second half of the year, which would allow for a potential reduction in interest rates.”

    Besides sector-specific initiatives, the minister listed the feat recorded in the housing sector to support sustainable value chains in anticipation of its catalytic effect on the economy.

    Edun also highlighted the revamping of the National Social Investment Programme (NSIP), ensuring targeted delivery and efficiency in supporting the vulnerable population.

    The minister reiterated government’s commitment to maintaining the naira as a strong store of value and ongoing dialogues with the private sector to align policies with their growth and sustainability needs.

    Looking forward, Edun expressed confidence in future: “With the ongoing adjustments and the resilient and resourceful spirit of our people, we are confident of a brighter, more prosperous future for all Nigerians.”

     “Notably, efforts to enhance liquidity and transparency in the foreign exchange market, spearheaded by the Central Bank of Nigeria (CBN) with support from the Ministry of Finance, are yielding positive results,” the ministry said.

    The Permanent Secretary, Mrs. Lydia Shehu Jafiya, reaffirmed the ministry’s dedication to swift policy implementation.

    “We are committed to aligning our actions with the administration’s policy thrust, ensuring effective execution and goal attainment,” she stated.

    On the relationship with the global financial institutions, the statement reads: “The Federal Ministry of Finance continues to collaborate closely with the World Bank to secure a substantial financing package, further underscoring Nigeria’s commitment to sustainable economic development.

    “The upcoming Board meeting in June 2024 is expected to finalise approval for the $2.25 billion financing proposal, comprising development policy financing and Programme-for-Results Financing, reflecting a shared vision for Nigeria’s economic progress on the global stage.”

  • Boosting investment

    Boosting investment

    • While government keeps working to improve FDI, local investors too should be encouraged

    On the surface of it, the observation by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, as regards the downward trend of foreign direct investment flows into the country over the last 10 years may appear to be only stating the obvious and thus of microscopic utilitarian value in terms of policy. But, given the critical role that foreign investment has come to play in the growth and prosperity of modern economies, it is imperative that economic policy planners keep an eye on this very important variable with a view to tracking its performance and coming up with policy options to maximise its developmental impact.

    In a recent presentation to top business leaders in Lagos under the aegis of the Lagos Business School Breakfast Club, the minister noted that foreign direct investment inflow into Nigeria nosedived from $22.7 billion in 2014 to $14.5 billion in 2015, $10.4 billion in 2016 and $9.8 billion in 2017. The foreign direct investment inflows improved slightly to $11.9 billion in 2018, fell again to $9.2 billion in 2019, rebounded slightly again to $10.2 billion in 2020 but then continued its downward slide to $6.9 billion, $4.6 billion and $3.7 billion in 2021, 2022 and 2023, respectively.

    Mr Edun’s analysis of the trajectory of foreign investment inflows into the country enables us to focus on why the situation is as it is and what can be done to enhance the country’s capacity to attract significantly improved foreign investment. There is no doubt that Nigeria should be a huge magnet for massive foreign investment patronage given, among others, her large and dynamic population, her strategic geographical location and the rich reserves of mineral and natural resources she possesses. That the country is not maximising her potential in attracting foreign investment at present makes it imperative for our economic policy makers to identify why and proffer solutions to change the narrative.

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    The current chronic infrastructure deficit as indicated by desultory electricity supply, huge mileages of bad roads as well as derelict and inefficient ports are some contributory factors. No less critical are the pervasive insecurity across the country, the multiplicity of often identical taxes collected by different levels of government and the debilitating bureaucracy that compounds the ease of doing business. Although the President Bola Tinubu administration has introduced policy measures and reforms to tackle these bottlenecks to smooth investment flows, there is the urgent need to accelerate the tempo of these efforts to achieve maximum gain within the shortest possible time.

    Within his about eight months in office so far, President Tinubu has devoted considerable time and energy to marketing the country abroad for enhanced investment patronage. The Minister of Trade, Industry and Investment, Doris Uzoka-Anite, recently stated that the country has attracted at least $30 billion worth of investment commitment so far under the Tinubu administration. Sustained and aggressive efforts to address the obstacles mentioned above will help speedily transform such commitments into reality.

    The finance minister noted that the essence of attracting investment into the economy is to increase productivity, growth, create jobs and reduce poverty. He identified rising inflation in western countries and the need to keep interest rates high by tightening the money supply in those countries as some of the reasons for lukewarm foreign direct investment into the country.

    In the light of the poor foreign investment appetite to inject external funds into the economy, he said the country would turn to the corporate world for solutions and investment, stressing that government would place emphasis on “our domestic resource mobilisation”. This is as it should be, as domestic investment is as critical as foreign investment in boosting economic growth and development.

  • Edun: Fed Govt to address inflation, liquidity issues

    Edun: Fed Govt to address inflation, liquidity issues

    • Targets 60% increase in revenue this year using digital technologies

    The Federal Government has outlined its strategic plan to counter the challenges posed by excess liquidity in the financial system, curb inflation and stabilise the economy.

    The disclosure was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a press briefing at the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC.

    Mr Edun confirmed the administration’s commitment to tackling the issue of 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 mobilization,” Mr 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.

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    “At 10 percent to GDP, what should I say? It would appear as if some people are not paying their taxes,” Mr 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 maximize 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 to create agro clusters to increase food production nationwide.

    At another event in Washington DC, the Finance Minister revealed that the Federal Government is aiming for over 60 percent increase in revenue this year using digital technologies.

    This strategic move the Finance Minister said is pivotal in reducing the nation’s fiscal deficit from 6.1 percent to 3.8 percent of GDP as well as easing economic strains on Africa’s largest economy.

    Edun spoke at the Semafor World Economy Summit, held concurrently with the World Bank and IMF Spring Meetings. He emphasised the critical role of digitisation and fiscal reforms stressing that stabilising the economy requires bringing down inflation, steadying the exchange rate, and ultimately lowering interest rates to encourage borrowing by investors.

  • Minister applauds firm’s role in digital transformation

    Minister applauds firm’s role in digital transformation

    The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has commended one of the nation’s leading smartcard manufacturing companies, SecureID Limited, for its contributions towards the nation’s digitization efforts.

    He also praised the company for its sustainability and viability in the last two decades. The minister thanked the company for its top-notch service delivery in the critical areas of payments (banking cards), telecoms (SIM cards), and biometric identification of Nigerians.

    Edun spokes during his visit to the company’s corporate headquarters. The minister further said he was impressed with the capacity of the factory to produce 200m cards annually which included voter registration cards, national identity cards, drivers’ license and other identity management cards.

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    The visit marked a significant milestone in Nigeria’s journey toward digital transformation and enhanced security measures in the ever-evolving digital landscape.

    A statement quoted the minister saying: “You are creating a vibrant and forward-looking organisation that has not only achieved a lot but has laid the basis for doing a lot more, sustainably and in an exemplary manner. A strong brand is evolving.”

    The minister said the visit was to acquaint himself with SecureID Limited’s world-class capabilities.

    Group Managing Director of SecureID Limited Kofo Akinkugbe, expressed optimism for the company’s future collaboration with the government and its positive implications.