Finance Minister Wale Edun has attributed Nigeria’s current economic challenges to the lack of essential reforms in previous administrations, impacting Nigerians under President Bola Ahmed Tinubu’s leadership.
At an event in Abuja on Friday, November 22, to unveil the Federal Civil Service Policies and Rewards Guidelines, Edun recognized the difficulties stemming from Tinubu’s policies, such as the elimination of the fuel subsidy and the Naira’s market-based exchange rate.
Edun defended these policies, stating they were overdue and are starting to show positive effects.
He remarked, “After 18 months of President Tinubu’s necessary and bold reforms, the country is transforming. Although these changes have brought temporary hardship, higher costs, and discomfort, the benefits are beginning to emerge.”
The removal of the fuel subsidy in June 2023 caused petrol prices to surge from ₦234 to over ₦1,060 per litre, while the Naira’s exchange rate plummeted to ₦1,652 per dollar from ₦195, worsening economic strains.
Edun noted that a market-based foreign exchange system has significantly increased government revenue, redirecting funds previously spent on subsidies. He highlighted, “Subsidies consumed about 5 per cent of GDP.”
According to October 2024 data from the National Bureau of Statistics, Nigeria’s headline inflation stands at 33.