Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has said that the last time Nigeria’s economy exhibited a noteworthy period of stability was approximately a decade ago, during the tenure of former President Goodluck Jonathan.
During his inaugural press conference as the Finance Minister in Abuja on Friday, Mr. Edun highlighted that during 2013 and 2014, the foreign exchange (FX) rate remained consistent, as did interest rates, which contributed to economic growth.
He noted that following Jonathan’s presidency, a frail and devaluing exchange rate, coupled with security issues, led to an economy that has not experienced growth and has failed to uplift Nigerians from poverty.
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“If we think back to when was the last time when the economy was stable, when it was growing, when inflation was low, when the exchange rate was stable, and when interest rates were affordable; that period was about a decade ago,” he said.
Mr Ebun attributed Nigeria’s economic progress during Jonathan’s administration to the worldwide commodity boom that began around 2010. The minister said “economic growth was about 6 percent around 2013 to 2014” because “oil prices were high and also [output] volumes were high.”
“Nigeria earned and the government earned into its coffers over $80 billion per annum, compared to the figure now of around $25 billion. So you can see the difference.
“And what that points to is that there was a time when the government had enough foreign exchange. It had enough naira revenue to meet its obligations and to provide the funding for growth of the economy.
“It had enough foreign exchange such that when people came in to invest and they needed to import raw materials, import machinery, government could provide the wherewithal.”
Nigeria’s economy took a nosedive in 2015, following the emergence of President Muhammadu Buhari and the downturn in the oil market compounded by covid-19. Though the drop in oil prices during Buhari’s administration was notable, experts have attributed Nigeria’s economic turmoil to his poor policies.
The economic turmoil has pushed the country into near bankruptcy, forcing it into borrowing. Nigeria’s total debt has reportedly risen to N77 trillion in the last eight years.
But Mr. Edun, who had earlier said that Nigeria cannot afford to borrow now given its current debt standing, urged the federal government to allow private funding.
He said the government can fill the gap by accommodating other sources of funding, such as foreign direct investment, as well as domestic investment by Nigerians in all areas.
“And we saw some of that in Lagos. When Mr. President was governor of Lagos, he opened up the power sector to private investment, the road sector to private investment infrastructure, waste management, even cemeteries to private investment, because government did not have the funds,” he said.
“And they were those who were willing and able to provide jobs and grow the economy by making those investments.
“So, that is a pointer to the fundamentals of the president’s strategy, private investment and worldwide, there are huge flows of foreign direct investment, once you give investors the right conditions.
“Specifically, where are we headed, President Bola Ahmed Tinubu has pointed out, in priority areas where he is going to take Nigeria. And his key priorities are to improve the lives of Nigerians by providing food security, by ending poverty,” he said.
Is there anything to like about him? I get he came nmout with the truth, but, where was he during Buhari's disastrous 8 years.
— Ruminate Tribe (@jejelaye_peter) September 1, 2023