Finance Minister Wale Edun acknowledged the pain of recent economic reforms in Nigeria but emphasized their necessity for growth. Key changes include subsidy removal and foreign exchange market unification, resulting in doubled revenue. Initiatives such as the Nigeria Education Loan Fund aim to support citizens and stimulate the economy.
At the Nigeria Economic Summit, Finance Minister Wale Edun addressed the challenges posed by the government's recent economic reforms, recognizing the difficulties many Nigerians are experiencing. He stressed that while these reforms are painful, they are essential for ensuring the country's future growth and stability.
Edun pointed out the significant financial hurdles Nigeria faced last year, such as declining oil revenues and a budget deficit that approached 6% of GDP, which he deemed unsustainable. This situation necessitated difficult choices, including the removal of fuel subsidies and the unification of the foreign exchange market. He asserted that these actions have already resulted in a doubling of overall revenue in the first half of this year, thanks to advancements in technology.
To enhance governance transparency, the government has implemented a system allowing direct payments for procurement to third parties, ensuring that resources are used effectively. Edun explained how the savings from subsidy removal are being reinvested in critical sectors, particularly agriculture, positively impacting over 20 million people across four million households, with plans to expand this initiative.
Additionally, he introduced the Nigeria Education Loan Fund (NELFUND), which has processed 250,000 applications, with 30% of students receiving funding. The government is also rolling out a consumer credit scheme aimed at improving the financial situation of Nigerians. According to Edun, these reforms have contributed to saving 5% of the GDP.
