Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the federal government’s economic reforms under President Bola Tinubu are beginning to yield visible results.
In an opinion piece released over the weekend titled “Nigeria Turning Towards Prosperity,” Edun revealed that key economic indicators are improving, including a noticeable drop in food prices — with a 50kg bag of rice now averaging ₦80,000, down from between ₦100,000 and ₦120,000 last year.
“Despite some historical shortfalls and present-day challenges, I believe the most difficult phase of our economic journey is behind us. Nigeria has turned a decisive corner,” Edun said. “The road ahead will demand hard work and discipline, but we are firmly on the right path.”
Economic Recovery Gaining Momentum
Edun explained that when President Tinubu took office in 2023, Nigeria’s economy was battling sluggish growth, soaring inflation, and structural distortions — including fuel subsidies and multiple exchange rates — that discouraged foreign investment.
He noted that reforms implemented since then are now stabilizing the economy. According to Punch, Nigeria’s GDP grew by 4.23% in Q2 2025, inflation has moderated to 18.02% after six consecutive months of decline, and foreign reserves have surpassed $43 billion, the highest level since 2019.
The gap between the official and parallel exchange rates has also narrowed to just 1%, compared to nearly 70% two years ago — a sign of restored confidence in the foreign exchange market.
Food Inflation Eases
While acknowledging that food prices remain a major concern for citizens, the minister said government interventions in agriculture and logistics are beginning to show results.
“A bag of rice that cost about ₦120,000 last year now averages around ₦80,000,” he noted. “The prices of garri, pepper, tomatoes, and other essentials have also decreased.”
He added that government support programs are designed to ensure smallholder farmers receive adequate incentives to boost production in the next planting season.
Welfare and Fiscal Stability Measures
Edun disclosed that over 8.1 million households have so far benefited from the government’s direct cash transfer initiative to cushion the effects of economic reforms. The program aims to reach 15 million households once identity verification challenges are fully resolved.
On fiscal management, he admitted that Nigeria’s debt-service burden and low revenue-to-GDP ratio (around 10%) remain key challenges but expressed optimism that the Nigeria Tax Act, signed in June 2025, will broaden the tax base and strengthen public revenue.
“Our medium-term target is 7% GDP growth by 2027/2028,” Edun stated. “If we work together, we can not only meet this target but surpass it.”
Nigeria’s Rising Debt Profile
Meanwhile, data from the Debt Management Office (DMO) shows that Nigeria’s total public debt has risen to ₦152.39 trillion as of June 2025 — up from ₦87.4 trillion in June 2023, when President Tinubu assumed office.
The figures mean each Nigerian now carries a debt burden of about ₦662,600, nearly double the per capita level two years ago.
Despite this, Edun maintained that the government’s fiscal reforms, debt management strategies, and investor-friendly policies are setting the stage for sustainable growth and shared prosperity.
