Minister of Finance Wale Edun has attributed the economic challenges Nigerians face under President Bola Ahmed Tinubu’s administration to past governments’ failure to implement critical reforms.
Speaking on Friday, November 22, in Abuja, during the launch of the Federal Civil Service Policies and Guidelines on Rewards, Edun acknowledged the hardships caused by Tinubu’s policies, including fuel subsidy removal and the floating of the Naira.
He, however, maintained that the reforms were necessary and were beginning to yield results.
“After 18 months of bold and necessary reforms that Mr. President has implemented, the country has changed,” Edun stated. “Yes, the reforms were so long overdue that it caused an element of pain, discomfort, difficulty, and increased cost of living. But the successes and the gains are coming through.”
The removal of the fuel subsidy in June 2023 led to a dramatic increase in petrol prices, soaring from ₦234 to over ₦1,060 per litre, while the Naira depreciated sharply, reaching ₦1,652 per dollar from ₦195. These changes have sparked widespread economic hardship.
Edun emphasised that market-driven foreign exchange pricing has bolstered government revenues at all levels, redirecting funds previously lost to subsidies.
“An amount of 5 per cent of GDP is what goes to subsidies,” he said, highlighting the fiscal benefits of the reforms.
Meanwhile, October 2024 data from the National Bureau of Statistics shows headline inflation at 33.88 per cent and food inflation at 39.16 per cent, significantly weakening the purchasing power of many Nigerians.
Despite public discontent, Edun expressed optimism, stating that the long-term gains of these reforms would outweigh their initial pains.