The Ministry of Finance has announced a strategic collaboration with the Organisation for Economic Co-operation and Development (OECD) to address illicit financial flows and strengthen Nigeria’s economic framework.
This partnership was formalized during a courtesy visit by Carlos Conde, Head of the Middle East and Africa Division at OECD, to Wale Edun, Nigeria’s Honourable Minister of Finance and Coordinating Minister of the Economy.
According to a statement shared on the Ministry of Finance’s X account, the OECD emphasized its growing engagement in Africa through partnerships with the African Union, regional blocs, and direct country-level initiatives.
Nigeria was identified as a key partner in West Africa, with discussions focusing on economic priorities such as capital market development, regional integration, sustainable finance, and investment in human capital.
“Discussions focused on Nigeria’s economic priorities, including capital market development, regional integration, curbing illicit financial flows, sustainable finance, and investment in human capital,” the statement noted.
Technical support offerings
The OECD also outlined its technical support offerings, including assistance in digitalization, governance, and statistical systems.
- Minister Edun welcomed the collaboration, highlighting the importance of harmonized data systems to drive reforms, attract investments, and create opportunities for Nigeria’s youth.
- In January, Minister Edun commended President Bola Tinubu for implementing critical reforms that have stabilized Nigeria’s economy and reclaimed 5% of GDP previously lost to inefficiencies.
- Speaking at the World Economic Forum in Davos, Edun noted that the removal of wasteful subsidies and the adoption of market-driven pricing mechanisms for petroleum products and foreign exchange have been pivotal in achieving this milestone.
“These steps have set the stage for the return of foreign direct investments,” Edun stated, citing significant commitments from Shell and TotalEnergies, which announced $5 billion and $3 billion investment decisions, respectively. These developments reflect renewed confidence in Nigeria’s economic potential.
In December 2024, Edun led a delegation to the Kingdom of Saudi Arabia on behalf of President Tinubu and the Presidential Economic Coordination Council to strengthen the economic partnership, focusing on enhancing export credit, insurance frameworks, and market access between the two nations.
The minister said “What we have brought back is foreign exchange. What we have brought back is jobs for Nigerians.”
What you should know
When asked whether the federal government is considering another Eurobond sale in 2024, Edun confirmed that it remains a viable option to address the country’s deficit spending.
- The Tinubu administration’s bold economic reforms have received both domestic and international attention.
- The removal of fuel subsidies, though controversial, is one of the defining actions of the administration.
- Analysts have estimated that these subsidies cost the government trillions of naira annually, a financial burden that exacerbated Nigeria’s fiscal deficit.
Additionally, the unification of exchange rates has been widely viewed as a necessary step to attract foreign investors and eliminate the distortions created by multiple exchange rate windows. These measures are expected to improve Nigeria’s balance of payments and foster sustainable growth in the long term.
