Abuja, Nigeria – Nigeria’s economy is showing signs of relative stability following months of turbulence, with key economic indicators moving in a positive direction, Minister of Finance and Coordinating Minister of the Economy Wale Edun said on Thursday.
Addressing the media in Abuja, Edun highlighted that the Nigerian economy had narrowly avoided collapse after heavily relying on illegally borrowed central bank funds that exceeded regulatory limits. He noted that recent policy measures had helped stabilize economic conditions and improve growth prospects.
“Where we are now is that, in the last quarter of 2024, the economy grew at roughly 3.84 percent, close to the annual target of 3.4 percent,” Edun stated. The growth figure suggests a steady recovery from the economic shocks the country experienced in the past 18 to 20 months.
Inflation Eases, Food Prices Stabilizing
One of the most significant improvements has been in inflation, which has shown early signs of easing. Edun noted that the inflation rate had dropped by 1.3 percentage points between January and February, bringing the overall rate down to 23.18 percent, according to data from the National Bureau of Statistics (NBS).
Food inflation, a major concern for millions of Nigerians, has also started to decline, providing relief for households struggling with high costs of essential commodities.
The minister attributed these improvements to ongoing economic reforms, stabilization of the exchange rate, and strategic interventions to control price surges.
Stronger Currency and Increased Revenues
The government’s efforts to stabilize the exchange rate have had a positive impact on imported goods and services, including healthcare and education, Edun said.
Nigeria’s currency had faced extreme volatility in the past year, but government interventions and a shift in monetary policy have helped reduce uncertainties in the forex market.
Additionally, government revenues increased by 20 percent in 2024, aided by improved tax collection and a more favorable trade balance. “All economic indicators are moving in the right direction, and most importantly, the cost of living is gradually improving,” Edun emphasized.
The administration is now focused on further stabilization and fostering a business environment that encourages private-sector investment. “With this progress, the government is now focusing on creating an environment that supports private-sector growth,” he said.
Proposed Tax Reforms and Technology-Driven Revenue Generation
As part of efforts to sustain economic stability, the government has introduced a tax reform bill aimed at increasing public revenues. The proposed legislation will raise the top-end personal income tax rate from 18.6 percent to 25 percent while simultaneously tightening government expenditure.
Edun also highlighted the role of technology in enhancing revenue collection from government-owned enterprises, ensuring that leakages are minimized and funds are efficiently allocated.
Despite these positive developments, experts caution that Nigeria still faces economic hurdles, including high unemployment, external debt burdens, and persistent security challenges. However, Edun remains optimistic, stating that the government’s economic roadmap is gradually yielding results.
With inflation slowing, the currency stabilizing, and revenues increasing, Nigeria appears to be on a path toward economic recovery—offering hope for businesses and households across the nation.
