By Goodluck Ikiebe
The Honourable Minister of Finance and Co-ordinating Minister of the Economy, Mr Wale Edun, has stated that
the heart of President Bola Ahmed Tinubu’s eight point agenda falls squarely within the purview of his Ministry on which he says lies the imperative for effective economic management and strategic coordination.
The Minister disclosed this on Tuesday at Radio House, Abuja during the Sectoral Briefing on the achievements of his Ministry in celebration of the one year anniversary of the President Bola Ahmed Tinubu-led Administration.
He informed
that within the first year of the present administration, the financial processes of the country has improved significantly with an increase in Government revenues substantially and sustainably.
The Minister, who rolled out the state of the Economy for the year in review
informed further
that “expenditure processes have been tightened through automation. From economic revitalization to social development, from infrastructure enhancement to good governance. This administration’s bold reform measures reflect a commitment to building a more prosperous, equitable and resilient Nigeria”, he noted.
Edun explained that the President Bola Ahmed Tinubu-led Administration within the year under review was able to boost oil revenues through increased oil production of 1.65mbd as at January 2024.
He assured that the country’s economy is growing with a Gross Domestic Product (GDP) growth rate of 2.98 per cent in the first quarter of 2024, which is higher than the population growth rate of 2.4 per cent and last year’s growth rate of 2.31 per cent.
“The economy is growing at 2.98 per cent for the first quarter of this year, which is higher than the population of 2.4 per cent. It is higher than last year’s 2.31 per cent. So, on balance, we can say that the President’s policy strategies and his programmes have turned the country in the right direction, upwards, growing”, he assured.
The Minister maintained that the Ministry, under his stewardship will continue to ensure the full implementation of the reform policies and programmes of the government in order to restore stability to the economy, in line with the Renewed Hope Agenda of the present administration.
Edun noted that the reforms have led to an increase in revenue, enabling the government to pay its debts and invest in infrastructure.
The Minister
explained that the government has also implemented social investment programmes to protect the poor and vulnerable, with direct payments of N75,000 to 15m households.
Additionally, he said, efforts are being made to improve food security, with 200bn Naira allocated to intervention programmes.
Edun added further that access to credit has also been improved, with N100bn allocated to consumer credit and grants of N50,000 being given to one million nano industries.
He informed further that government has implemented a system of payment to ensure that Nigeria’s money is spent wisely and accountably.
The Minister, who emphasised the importance of infrastructure in growing the economy and creating jobs, added that the fund has been set up to provide institutional long-term funds to support housing construction and low-interest mortgages for the average Nigerian.
“The government’s efforts have led to an improvement in Nigeria’s international credit rating, with Moody’s and Fitch increasing and improving Nigeria’s rates to positivity”
Edun expressed optimism that continuing on this path will lead to a growing economy and improved living standards for all Nigerians.
“We have room to feel that continuing on these paths, redoubling our efforts, following Mr President’s agenda at the state and federal level, will lead us to a growing economy that takes us out of poverty and produces a better life for all Nigerians”, Edun noted.
In a remark, the Minister of Information and National Orientation, Mohammed Idris, urged journalists to ensure they provide wider publicity for the Briefing through patriotic and positive reportage for the benefit of the country.
He assured that the President Bola Ahmed Tinubu-led Administration is determined to improve the lives of its citizens through deliberate strategic initiatives, programmes and projects that have direct impact on their lives.
Nigeria Records Major Milestone in Debt Reduction; Pays Off N4.5 Trillion Ways & Means
In another development, the Federal Government has disclosed that it
has taken bold steps towards reducing the N7.3 trillion Ways and Means it inherited with the
payment of the sum of N4.8 trillion.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun stated this during the Ministerial Press Briefing on the achievements of his Ministry in the one year administration of the President.
He informed that in addition to having paid the N4. 8 trillion, another N2.5 trillion will be paid in the second quarter of 2024
On Debt Servicing Without recourse to Ways and Means,
the Minister informed further that due to improved fiscal discipline, “The Government has largely financed debt service obligations,
including foreign debt service, without resort to Ways and Means Account”, Edun stated.
Such payments he added included outstanding commitments/shareholding to multilateral development banks
(MDBs) and international organizations, including over US$200m to Islamic Development Bank.
Wale Edun stated that on the National Single Window, the Federal
Government launched the NSW, a technology platform for trade facilitation & import administration with the potential of annual economic benefit of US$2.7 billion.
He added that, the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) is in the process of tax Harmonization and streamlining of tax collection processes which he said has come up with strategies for broadening tax net as well as advanced in the single-digit tax system to reduce the number of taxes in the country,
Briefing on the Oil Revenue Increases, the Minister noted that Oil revenue of N1.1 trillion was achieved in the first quarter of 2024, as against N460 billion in the same period of the preceding year (2023).
Edun maintained that the oil revenue flowed from an impressive increase in oil production, which recorded 1.7mbpd in the first quarter of this year, up from 1.3mbpd in June 2023.
The Minister said that Federal
Government revenues from GOEs also substantially
increased (Q1’2024 ₦835.7B vs ₦154.3B Q1’2023). The impressive revenue record of the period under consideration was made possible by the introduction of technology-driven strategy systems to automatically deduct revenue due to FGN.
Similarly, the FGN has earned more FX income under the new revenue model.
Specifically, the Nigeria Customs Service recorded unprecedented increases in the first quarter 87% Increase in 2023 revenue mobilization, as well as a 122% revenue increase in Q1 2024 compared to Q1 2023
In addition, he said that the Federal Inland Revenue recorded a 107% achievement of 2023 target and a 56% revenue improvement in Q1 2024 compared to Q1 2023.
Under the
Fiscal Policies & Financial Management, Edun said, “the administration launched the Incentives Monitoring & Evaluation Platform (IMEP) to prevent the misuse of tax incentives by blocking and limiting access to those who do not qualify for the incentives”.
“We also strengthened the implementation of fiscal policies around the Import Duty Tax Incentive to boost key
economic sectors and deliver more sustainable socio-economic impacts”.
He disclosed that the FGN, via the Debt Management Office (“DMO”), raised ₦4.8 trillion from domestic capital markets to repay outstanding obligations to the Central Bank of Nigeria as it
works towards bringing the Ways and Means balance within legal limits and progressed to the final approval stages
of a $2.25 billion single-digit interest loan from the World Bank for a 40-year-term with 10 years moratorium at 1% interest rate.
On Domestic USD Bond Issuance, the Minister revealed that the President has issued an executive order for local issuance of foreign-denominated securities. In a move that will showcase the resilience of Nigerian capital markets, “the issuance of the first domestic foreign currency debt instrument is being processed by the capital market
firms. These bonds will be mainly marketed to both Nigerian and non-Nigerian investors with foreign exchange balances abroad”, he clarified.
FDIs, MoF, under the leadership of Mr. President, he said, has actively engaged with a broad range of international investors from the Middle East, Europe and India to showcase the reformed economic policies of the FGN.
“It is anticipated that well advanced discussions with investors from the Middle East will yield positive results in the near term”, Edun affirmed.
He said that Infrastructure/Housing Finance Fund (MOFI) is partnering with Government Agencies and the private sector to boost investment in infrastructure, housing,
and to provide 25-year low interest rate mortgages.
*It is anticipated that long term funding from institutional investors will be mobilized via capital market funding, he noted.
While briefing on Improved Credit Rating, the Minister stated that over the last 12 months, two international credit rating agencies have reviewed Nigeria’s credit rating from ‘stable’ to ‘positive’ outlook.
Wale Edun, who was accompanied to the media briefing by the Permanent Secretary Federal Ministry of Finance, Mrs Lydia Shehu Jafiya and the Permanent Secretary Special Duties, Federal Ministry of Finance, Mr Okokon Ekanem Udo,
Heads of Agencies under his supervision as well as Directors of the Ministry explained to the media the issue of Coordination of Fiscal and Monetary Policies, that through the issuance of government debt securities by the DMO at higher interest rates, MoF has supported monetary policy authorities in attracting the inflow of foreign exchange from FPIs; and in stabilizing the exchange rate of the Naira.
New Monetary and Fiscal Coordination Committee was established.
He stated that on Financing of Major Infrastructure Projects,
MoF has provided from internal finances critical initial funding to kick-start major infrastructure projects such as the Lagos-Calabar Coastal Road.
In a closing remarks, the Honourable Minister of Information and National Orientation, Mohammed Idris, stated that the detailed presentation by the Honourable Minister of Finance and Co-ordinating Minister of the Economy, Mr Wale Edun on the state of the Economy in year review has shown the commitment of the President Bola Ahmed Tinubu-led Administration in its avowed determination to ensure the general improvement in the lives of Nigerians and as such deserves our commendation.
He assured that Government will continue to formulate and implement policies, initiatives, programmes and projects that will impact positively on the lives of the citizens in line with its Renewed Hope Agenda.
