President Bola Tinubu’s economic reforms have restored stability to Nigeria’s economy, reclaiming 5% of the country’s GDP once lost to fiscal inefficiencies, according to Finance Minister Wale Edun.
The announcement, made during the World Economic Forum (WEF) in Davos, signals a pivotal shift for Africa’s largest economy.
“Under President Bola Tinubu, Nigeria has stabilized the economy; it has taken back 5% of GDP that was wastefully lost,” Edun said, emphasizing the transformative impact of recent policy changes.
These reforms include the removal of costly fuel subsidies and the adoption of market-driven pricing for petroleum products and foreign exchange. Analysts have estimated that fuel subsidies alone drained trillions of naira annually, worsening the country’s fiscal deficit.
Investment Surge Reflects Renewed Confidence
Edun highlighted the early success of these measures, pointing to major foreign investment commitments. “Shell has announced a $5 billion final investment decision, and TotalEnergies has committed $3 billion,” he revealed. “These are significant signs of renewed confidence in Nigeria’s economic trajectory.”
Experts say these investments could create thousands of jobs and improve foreign exchange inflows. “What we’ve brought back is foreign exchange. What we’ve brought back is jobs for Nigerians,” Edun stated.
Saudi Economic Ties and Global Diplomacy
The Tinubu administration has also intensified economic diplomacy efforts, with Saudi Arabia emerging as a key partner. In December 2024, Edun led a delegation to Riyadh to strengthen trade ties, focusing on export credit and market access.
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Addressing concerns about stalled Saudi investments, Edun clarified, “It’s an ongoing conversation. It’s part of the President’s global economic diplomacy to attract investments and deepen partnerships.”
Addressing Deficit Spending Without Printing Money
On Nigeria’s budget challenges, Edun noted that deficit spending remains a concern. However, he assured stakeholders that the government would not resort to money printing, a practice that previously destabilized the economy. Instead, Nigeria plans to tap financial markets under “reasonable terms” and explore Eurobond sales in 2024 to bridge the funding gap.
Reforms Poised for Long-Term Growth
Economic analysts widely regard Tinubu’s reforms as bold but necessary. The unification of exchange rates has eliminated distortions caused by multiple rate windows, while subsidy removal is expected to free up funds for critical infrastructure and social programs.
“These reforms are not just about short-term stabilization,” Edun explained. “They set the foundation for sustainable growth and a stronger economy for all Nigerians.”
This strategic recalibration, despite its challenges, is positioning Nigeria for a brighter economic future, drawing in global investments, and opening opportunities for millions of Nigerians.
