Nigeria?s economy growing faster on reform gains – Wale Edun

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, presented a comprehensive overview of the national economic data, highlighting significant improvements in both fiscal and monetary positions.

Speaking at the newly introduced quarterly media briefing in Abuja, Edun reported that the economy grew faster in the first quarter of 2024 compared to the same period in 2023, marking the second-fastest first-quarter growth in the last six years. He noted broad-based economic growth across various sectors, including agriculture, industries, and services. Agricultural growth, in particular, recovered from a negative rate in the first quarter of 2023 to a modest increase in 2024, while the industrial sector grew seven times faster year-over-year.

Edun attributed the positive economic performance to well-coordinated fiscal and monetary policies. He revealed that federal government revenue in the first half of 2024 more than doubled compared to the same period in 2023, driven by reconfiguration and improvements in government finances. Oil revenue as a percentage of gross revenue increased from 11% in the first half of 2023 to 30% in the first half of 2024.

The minister said non-oil revenue also saw a strong performance, surpassing 2023 levels by 30% and exceeding the 2024 budget target without any tax increases. Edun emphasized the government’s commitment to further enhancing revenue through increased oil production and sales, as well as attracting more investment into the sector.

Edun also disclosed that Nigeria’s debt burden has reduced in dollar terms, with the government’s fiscal deficit improving significantly. “Our debt has fallen in dollar terms from $108 billion to $91 billion,” Edun said. He noted that the government has diligently serviced all its loans and obligations without resorting to inflationary ways and means of financing, and has repaid a N7.3 trillion obligation within a year of President Bola Tinubu’s administration.

According to him, the debt service-to-revenue ratio has improved from 97% in the first half of 2023 to 68% in 2024, indicating a stronger position in managing debt obligations. The 2024 budget deficit is targeted at 4.1% of GDP, down from 6.1% in 2023, with current projections showing a near achievement of this goal at 4.4%.

Edun highlighted the government’s efforts to attract foreign investments, including the implementation of the national single window project, expected to generate $2.7 billion annually in economic benefits. He said the accelerated stabilization and advancement plan has already attracted $500 million in gas sector investments, with an additional $7 billion on the horizon.

To address the high cost of living, the government has implemented several initiatives, such as a strategic input program to increase food supply, a pivot to Compressed Natural Gas (CNG) for mass transit vehicles, and lower-cost financing for the manufacturing industry. Edun expressed optimism that inflation will moderate soon, noting the Central Bank of Nigeria’s proactive monetary policy adjustments.

Addressing concerns about social unrest, Edun acknowledged the right to protest and freedom of speech in a democracy but urged Nigerians to give the government more time to implement necessary reforms. He emphasized plans to provide long-term, low-interest mortgages to help alleviate the high cost of living for ordinary Nigerians.