The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has revealed that the Bola Tinubu administration inherited an economy on the brink of collapse but is steadily reversing the trajectory through bold and targeted reforms.
Speaking during a briefing with the Senate Committee on Appropriations regarding the 2025 Appropriation Bill, Mr. Edun noted the administration’s economic stabilization strategy, noting significant progress in fiscal recovery and growth.
“The administration inherited an economy on the brink, but through targeted reforms, we are now on a recovery path,” Edun stated.
“Our focus remains on growing revenues, improving fiscal discipline, and ensuring sustainable economic growth for all Nigerians.”
He cited the over 3% GDP growth recorded in the previous year as a testament to the effectiveness of these reforms.
Edun, alongside the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, provided critical updates on the performance of the 2024 budget and explained the low implementation rate of capital expenditure.
According to Edun, the overall performance of the 2024 budget stands at 43%, with recurrent expenditure achieving full (100%) implementation, while capital expenditure lagged significantly at just 25%.
Despite the challenges, Edun emphasized the government’s commitment to extending the capital expenditure period to June 30, 2025, to ensure project funding and completion.
“Our focus remains on growing revenues, improving fiscal discipline, and ensuring sustainable economic growth for all Nigerians,” he stated.
Bold Reforms Yielding Results
- The minister credited the fiscal recovery to reforms introduced by the Tinubu administration, particularly the market-based pricing of Premium Motor Spirit (PMS) and foreign exchange policy adjustments.
- These measures, he said, could save the country up to 5% of previously lost revenue and lay the foundation for sustained economic growth.
- He further acknowledged improvements in revenue collection from key agencies like the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS), which have shown stronger performances under the administration’s macroeconomic reform agenda.
Challenges and Future Outlook
- Addressing the challenges associated with the 2024 capital budget implementation, Senator Bagudu pointed to cash flow constraints and procurement delays but reassured the Senate that measures are being taken to address these issues.
- Edun echoed this sentiment, reaffirming the government’s resolve to overcome obstacles and accelerate capital expenditure to drive infrastructure development and job creation.
- Edun also noted the administration’s long-term vision for economic sustainability, anchored on revenue diversification, fiscal discipline, and strategic investments in critical sectors such as energy, infrastructure, and technology.
“Our macroeconomic reforms have begun to deliver results,” he noted.
“We are confident that consistent revenue growth will provide the resources needed to fund our developmental goals.”
The Finance Minister assured the Committee that the government’s reforms are setting the stage for sustained economic growth and fiscal recovery.
He noted that the administration remains determined to achieve higher growth rates and create a more stable economic environment that benefits all Nigerians through increased job opportunities, higher investments, and inclusive growth.
Key Takeaways
- The Tinubu administration which commenced on May 29, 2023, inherited a severely strained economy but has embarked on bold reforms to stabilize it.
- Budget performance in 2024 saw recurrent expenditure fully implemented, while capital expenditure recorded just 25%.
- Revenue from agencies like FIRS and NCS is growing steadily, contributing to fiscal recovery.
- Economic reforms, such as market-based PMS pricing and forex adjustments, are projected to save 5% of previously lost revenue.
- The administration remains committed to funding capital projects and achieving sustainable growth for all Nigerians.
