The economy is growing faster and government’s financial position becoming better as ongoing reforms continue to address fundamental pillars for sustainable development.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday gave a full overview of the national economic data, with significant improvements in fiscal and monetary positions.
Speaking at the newly introduced quarterly media briefing yesterday in Abuja, Edun highlighted that the economy grew faster in the first quarter of 2024 compared to 2023.
According to him, economic activity in the first quarter of 2024 was not only faster than first quarter of 2023, but it was also the second fastest first-quarter growth in the last six years.
He noted that the economic growth was broad-based across several sectors including agriculture, industries and services, with agricultural growth recovering from negative in the first quarter of 2023 to a modest growth in the first quarter of 2024.
He pointed out that the industrial sector grew seven times faster in first quarter 2024 than in first quarter 2023.
He attributed this positive economic performance to the government’s well-coordinated fiscal and monetary policies.
Edun explained that aggregate federal government revenue in the first half of 2024 was more than double of the corresponding period in 2023.
He attributed the revenue growth to the reconfiguration and improvement in government finances, with oil revenue as a percentage of gross revenue increasing from 11 per cent in the first half of 2023 to 30 per cent in the first half of 2024.
The finance minister also highlighted the strong performance of non-oil revenue, which not only surpassed the revenue in the first half of 2023 but was also 30 per cent above the 2024 budget target, without any increases in taxes.
He emphasised the government’s commitment to further improving revenue through increased oil production and sales, as well as enhancing the fiscal policy landscape to attract more investment into the sector.
He pointed out that Nigeria’s debt burden has reduced in dollar terms, and the government’s fiscal deficit has improved, as the country’s economic reforms continue to yield positive results.
“Our debt has fallen in dollar terms from $108 billion to $91 billion. Not only that, the government has diligently serviced all its loans and obligations with no recourse to ways and means financing. The government has met all its obligations,” Edun said.
He noted that the government is not relying on ways and means borrowing, which can be inflationary, and has paid back the previous N7.3 trillion obligation within a year of President Bola Tinubu’s administration.
He highlighted the improving debt service-to-revenue ratio, which has declined from 97 per cent in the first half of 2023 to 68 per cent in 2024, indicating the government’s strong position in managing its debt obligations.
On the budget, Edun said that the 2024 budget deficit has moved in the right direction, with a target of 4.1 per cent of GDP, an improvement from the 6.1 per cent deficit recorded in 2023.
“On an annualized basis, we are at 4.4 per cent, so you can see we are effectively very, very close to the budgetary target,” Edun said.
He noted government’s efforts to attract foreign inflows, including the implementation of the national single window project, which is expected to generate $2.7 billion per annum in economic benefits.
He added that the government’s accelerated stabilisation and advancement plan has already attracted $500 million in investment in the gas sector, with $7 billion more on the sidelines waiting to come in.
According to him, to address the high cost of living, the government has implemented several initiatives and interventions, including a strategic input programme to increase the supply of food, a pivot to Compressed Natural Gas (CNG) fuel for mass transit vehicles, and providing lower-cost financing for the manufacturing industry and production.
He expressed optimism that inflation, despite being “quite sticky at the moment,” will moderate soon due to the government’s commitments and actions.
“Clearly, as part of the reform program, on the monetary side, monetary policy has been tightened. CBN has been proactive in adjusting the monetary policy rate to address inflation head-on, which is in line with its legal mandate,” Edun said.
Addressing the concerns about social unrest, Edun acknowledged the right to protest and freedom of speech in a democracy, but urged Nigerians to give the government more time to push through the necessary reforms that have come at a cost.
He emphasized the government’s plans to provide long-term, low-interest mortgages to ordinary Nigerians to help alleviate the high cost of living.
[TheNation]