Edun gives insight into Tinubu’s administration’s effort in stabilising economy, reducing poverty

Minister of Finance and Coordinating Minister of the Economy, Wale Edun

Edun gives insight into Tinubu’s administration’s effort in stabilising economy, reducing poverty.

President Bola Ahmed Tinubu is stabilising the economy through bold socio-economic reforms aimed at revitalising critical sectors, reducing poverty and restoring public confidence, Minister of Finance and Coordinating Minister of the Economy Wale Edun said yesterday.

The administration, he affirmed, would focus on major infrastructural projects this year to stimulate growth and job creation.

Edun, who appeared before the Senate Committee on Finance to defend the ministry’s N13.51b budget, maintained that President Tinubu’s economic policies are yielding positive results but need time to take full effect.

The minister acknowledged the rising inflation, assuring Nigerians that the Federal Government is working to make food affordable and available.

Also, Minister of Communications, Innovation and Digital Economy Dr. Bosun Tijani, at another forum, said the President plans to build a trillion-dollar economy with a 21 per cent increase in Gross Domestic Product (GDP) through reforms by his ministry.

Other ministers who appeared before the Senate committee are: Atiku Bagudu (Budget and National Planning), Dele Alake (Solid Minerals) and Muhammadu Dingyadi (Labour and Employment).

The committee, which emphasised the urgency of diversifying the economy from oil dependence, queried the inadequate allocation to the Ministry of Solid Minerals.

Edun was optimistic about Nigeria’s economic direction, highlighting a projected GDP growth rate of 3.5 per cent and increased revenue from both the oil and non-oil sectors.

He said: “Having stabilised the Nigerian economy to a large extent and still committed to the fight against inflation, which on behalf of Nigeria, the government will win, this will bring down food prices and make food more affordable and available.”

Edun also explained that most of the government’s spending this year would be on major infrastructure projects to further stimulate economic growth and job creation.

The minister said: “Within that context, the growth of the Nigerian economy is to come from investment, private sector investment.

“The government’s spending and prioritisation of its projects will be on major infrastructure, including digital infrastructure and fibre optics to make the economy more productive so that it can grow, create jobs, and reduce poverty, which is the overall goal of President Bola Tinubu.

“The policies of the President are working, but they do take time. Even when you go through a physical operation, there will be pain at first, and it will ameliorate over time. It will be no different for the Nigerian economy and Nigerians.”

The finance minister also enumerated government interventions aimed at alleviating economic hardship, including support to farmers, cash transfers, student loans, Compressed Natural Gas (CNG) powered buses, and low-interest loans.

He stressed: “These are all interventions to ameliorate the situation of the relatively high cost of living, which is coming down and is predicted to come down as we have said earlier today.

“So, much brighter times are ahead for the Nigerian economy, the Nigerian society, and the people of Nigeria.”

After Edun’s presentation, Committee Chairman Sani Musa said the lawmakers had scrutinised the ministry’s proposal and found the proposed spending justifiable.

He said: “We have heard you and we have looked at your budget 2025 proposal here, and in the view of the committee, you need these things that you have presented before us.”

Musa commended the Tinubu Administration for its efforts at reflating the economy.

He disagreed with Senator Seriake Dickson, who said the improvements in the economy were not being seen nor felt by Nigerians.

Senators Sunday Karimi Steve, Aliyu Ahmed Wadada, Oyewunmi Olarere, Mohammed Onawo Ogoshi, and Abdul Ningi commended the Federal Government’s strides in stabilising and improving the economy.

However, some senators questioned the feasibility of the inflation target, citing persistent challenges such as exchange rate instability, high interest rates, and rising food prices.

Senator Orji Uzor Kalu said while the Central Bank of Nigeria (CBN) had taken measures to combat inflation through monetary tightening, structural economic issues remain unresolved.

He said: “Pegging inflation at 15 per cent assumes a level of fiscal discipline and policy coordination that we are yet to see materialise.

“It’s not just about monetary policy; we need aggressive efforts in food security, energy stability, and industrial output.”

Senator Tokunbo Abiru said the government’s reliance on an envelope budgeting system could further strain fiscal resources.

“Inflation is not just a monetary phenomenon. If we are not addressing revenue leakages and inefficiencies in public spending, achieving this target will remain a mirage,” he said.

Defending the 15 per cent inflation benchmark, Edun explained that it reflected the CBN’s confidence in its monetary policy framework and the government’s efforts to boost food production.

The minister stressed: “The CBN is indicating a 15 per cent inflation rate by the end of 2025. It is achievable. We are working hard towards it, and we look forward to achieving it. And it is their (CBN) signalling of where inflation is expected to lie that has given us this interest rate. However, we all have a role to play.

“Even if monetary policy helps to try to bring down inflation, however, on the fiscal side, it is important that we contribute to lower inflation, not just by really squeezing demand, but by increasing supply.

“Increasing the supply of food is one of the major commitments that is already laid out. We are having a dry season harvest now and we have mobilised 250,000 farmers to be able to produce 750,000 metric tonnes of assorted grains from the dry season farming.”

Edun also said that under President Tinubu, the country’s economy was growing as the budget deficit was falling while the debt service was improving.

He said: “After 18 to 20 months under the able and visionary leadership of President Bola Tinubu, the economy is very much turning the corner, it is growing.

“The budget deficit as a percentage to Gross Domestic Product is falling while debt service ratio as a percentage to revenue is improving.”

Muhammadu Dingyadi said the government was doing its best to comprehensively tackle unemployment.

Dingyadi, who defended his ministry’s vote in the 2025 Budget before the Senate Committee on Employment, Labour and Productivity, chaired by Diket Plang (APC-Plateau Central), said: “We have been fighting unemployment in the ministry because that is our key assignment.

“That is the key responsibility that the Minister of Labour and Employment is saddled with. All the skill development programmes that this ministry is doing, we are doing it to fight unemployment.

“This is our major responsibility. And like I said, we are on top of the situation to ensure that we fight unemployment to finish.”

The minister asked for more time to furnish the committee with unemployment statistics.

He said: “I didn’t come with them and we have to coordinate them because all our parastatals and agencies are working on this issue of fighting unemployment.

“So, we’ll coordinate and provide our committee with these figures. I know members of this committee are very serious and very intelligent.

“When we bring these figures, you will know whether what we are telling you is correct or not. So, please give us a little time. We will get these figures ready for you and we will make them public if you want us to do so.”

Senator Plang appreciated Tinubu’s commitment to the welfare, well-being and happiness of workers (both in the public and the private sectors).