By Goodluck Ikiebe
The Nigerian government says that it has made steady progress in its economic reforms towards achieving a step-change in the revenues in line with the budget for 2024.
It also announced the exit from the Ways and Means borrowing mechanism.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, stated this on Thursday in Abuja during the half-year review Ministerial Press Briefing with the theme: Economic Recovery and Growth: Progress and Prospects 2024.
He highlighted successes of the Government’s reforms, citing a projected budget deficit of 4% in the 2024 Fiscal Year.
Mr Edun also acknowledged the temporary hardships caused by the reforms but assured that Nigerians would soon benefit from the expected outcomes as the well coordinated economic policies of the Federal Government are beginning to yield results as shown in the slowing in the rate of growth of inflation, increasing foreign investments relative to the same period in the previous year, amongst other positive fiscal yardsticks that are being recorded.
The Finance Minister explained that one of the major priorities of the President Bola Tinubu-led Administration in the immediate term is to reduce food prices and focus on providing all the necessary support to increase local food production, given the impact of high food prices on inflation, noting that efforts are underway to achieve this goal.
Mr Edun emphasized the President’s commitment to the welfare of ordinary Nigerians and the Government’s efforts to ensure transparency and accountability in its social protection initiatives including but not limited to the acceleration of the direct benefit transfer programme that has now been restarted following an initial pause of the programme to improve transparency in its delivery.
He noted that, following the resumption of payments, over 600,000 households have already received this direct transfer this week.
As part of efforts to further improve foreign exchange liquidity and to showcase the resilience of the Nigerian financial system as economic stability takes root, the Minister also announced plans by the Federal Government to issue domestic USD denominated securities of up to US$500 million, in the first instance to attract investment from Diaspora Nigerians and Nigerians with savings held abroad.
Mr Edun acknowledged the Supreme Court’s judgment on direct payment of federation allocations to Local Government Areas, and reiterated the Government’s commitment to implementing the judgement.
The Finance Minister affirmed that with the outcome of the first half of 2024, the Nigerian economy is turning the corner; and with macro-economic stability, the economy is being well positioned for sustained and inclusive growth that creates jobs, lifts millions out of poverty, and drives domestic and foreign investments that would improve the general well-being of the average Nigerian.
Figures from the National Bureau of Statistics (NBS), showed that Nigeria’s inflation stood at 33.25 per cent in June, while food inflation rose to an all-time-high of 40.8 per cent in the same month.
