Nigeria’s reforms drive stability, boost investor confidence - Edun
Nigeria is beginning to see the early results of a broad set of economic reforms introduced by President Bola Ahmed Tinubu’s administration. Officials say the country is gradually moving toward
Nigeria is beginning to see the early results of a broad set of economic reforms introduced by President Bola Ahmed Tinubu's administration. Officials say the country is gradually moving toward a more stable and resilient economy.
This position was presented by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press interaction held on the sidelines of the Spring Meetings of the World Bank and the International Monetary Fund in Washington, D.C.
Edun explained that the policy direction adopted since 2023 reflects a deliberate shift away from short-term interventions to deeper changes intended to reposition the economy for sustained growth. According to him, the reforms are structured to stand the test of time and better shield the country from shocks in the global economy.
He said the international environment remains difficult, with many countries grappling with tighter financial conditions, trade disruptions, and uncertainties affecting exports. Within this setting, he noted that Nigeria is focusing on maintaining discipline in its economic management to build a more reliable foundation for growth.
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The Minister said recent changes in the foreign exchange market and the removal of fuel subsidies are central to the government’s strategy. He explained that these steps are gradually correcting imbalances that had built up over the years and are helping the economy respond more effectively to external pressures.
Addressing concerns about rising prices, Edun acknowledged that inflation remains a challenge, driven largely by higher energy costs, food supply issues, and transportation expenses. He, however, said measures are being put in place to support vulnerable Nigerians, including targeted assistance programmes and efforts to boost agricultural output.
He maintained that careful management of government finances remains a priority, noting that resources are now being directed more efficiently following the end of costly subsidy arrangements.
Giving an update on the country’s performance, the Minister said economic activity has strengthened, with growth now above four per cent. He added that Nigeria’s external reserves have improved significantly, approaching $50 billion, while price pressures are beginning to show signs of easing. He also stated that the country’s debt level is still within manageable limits.
Beyond the macroeconomic figures, Edun said there are signs that investor confidence is returning. He pointed to large-scale projects such as the Dangote Refinery as examples of renewed private sector commitment, adding that smaller businesses are also benefiting from reforms aimed at improving the business environment.
He expressed optimism that the economy is entering a new phase where growth will accelerate, and employment opportunities will expand, particularly in key sectors like power, agriculture, infrastructure, and technology.
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Edun also said discussions with international partners at the meetings showed continued backing for Nigeria’s reform efforts, alongside growing interest from investors in sectors such as energy and agribusiness. He added that Nigeria is engaging in global conversations on how to reduce borrowing costs for developing countries.
According to him, the overall objective of the reforms is to place the country on a path of steady growth that will ultimately reduce poverty and improve living standards.
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Meanwhile, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said monetary authorities are aligned with the reform agenda and remain focused on maintaining stability.
Cardoso noted that the global economy continues to face pressures, including inflation and geopolitical risks, but said Nigeria has managed these challenges more effectively in recent months, supported by improved exchange rate conditions and stronger reserves.
He stressed that maintaining consistency in policy implementation will be key to sustaining investor trust over time.
On the banking sector, the CBN Governor disclosed that the recapitalisation programme has drawn substantial investor interest, leading to the mobilisation of about N4.65 trillion in fresh capital. He said most banks have met the new requirements, which will strengthen their ability to support lending and economic expansion.
Cardoso expressed confidence that continued adherence to the reform path will help stabilise the economy further, encourage investment, and support long-term growth.
