The Pacesetter Frontier Magazine

Tag: Economic Reforms

  • FG Warns Fuel Subsidy Return Could Trigger Capital Flight

    FG Warns Fuel Subsidy Return Could Trigger Capital Flight

    Precious Nwonu, Enugu

    The Federal Government has warned that restoring petrol subsidies could trigger capital flight, weaken the naira and reverse gains made through its economic reforms.

    The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, gave the warning during a briefing in Bangkok, Thailand, following the 2026 IMF-World Bank Annual Meetings.

    Oyedele said investors had repeatedly sought assurances that the government would not reverse the removal of fuel subsidies or the unification of exchange rates, particularly as Nigeria approaches another election cycle.

    He warned that any indication of a return to subsidies could undermine investor confidence, prompt capital withdrawals and increase pressure on the foreign exchange market.

    The briefing was also attended by the Central Bank of Nigeria Governor, Olayemi Cardoso, and the Minister of Budget and Economic Planning, Atiku Bagudu.

    The delegation clarified that the Federal Government’s 30-day petrol price reduction did not amount to a reinstatement of fuel subsidies.

    Bagudu stressed the need for closer coordination between fiscal and monetary authorities to sustain the gains of ongoing reforms. The government also announced a seven per cent economic growth target.

    At the meetings, Nigeria called for reforms of the International Monetary Fund and World Bank to strengthen the representation of developing economies in global financial decisions and improve their access to funding.

    Presenting the Group of 24 communiqué, Oyedele said geopolitical conflicts, trade uncertainties, volatile commodity prices and climate-related shocks were threatening global growth, with emerging and developing economies bearing a disproportionate share of the impact.

  • Oyedele Warns Against Taxing Poor Nigerians, Urges AfCFTA Policy Alignment

    Oyedele Warns Against Taxing Poor Nigerians, Urges AfCFTA Policy Alignment

    Precious Nwonu, Enugu

    The Minister of Finance, Taiwo Oyedele, has warned African governments against imposing additional taxes on vulnerable citizens and productive businesses to address fiscal challenges, saying such measures could worsen hardship and undermine economic growth.

    Oyedele also called for stronger policy coordination among African countries to remove trade barriers and maximise the benefits of the African Continental Free Trade Area.

    He made the remarks during discussions at the Annual Meetings, where he addressed taxation, economic reforms, employment, development financing and regional trade integration.

    The minister said governments should focus on improving domestic revenue mobilisation and eliminating inefficient expenditure rather than introducing tax measures that place additional pressure on low-income households and businesses.

    According to him, excessive taxation could leave vulnerable families with fewer resources for essential needs, including food, healthcare and education, while placing pressure on businesses that generate jobs and economic activity.

    He noted that both taxation and borrowing had consequences, adding that governments needed to strike a balance that ensured sustainable public finances without compromising citizens’ welfare.

    “The essence of tax and of debts is to cater for the people. If you put people always at the centre of your policies, you will not be perfect, but you are likely to strike a balance that works and is sustainable,” he said.

    Oyedele also stressed that economic growth should be measured by its ability to create jobs, promote inclusion and improve living standards rather than by macroeconomic indicators alone.

    He warned that the growing adoption of artificial intelligence could affect employment opportunities if governments failed to develop appropriate policies to manage its impact.

    The minister said economic stability remained essential for sustainable growth, investment and prosperity, noting that governments needed a stable foundation to implement structural reforms and infrastructure programmes.

    On regional integration, Oyedele said the AfCFTA offered African countries an opportunity to combine their fragmented national markets into a larger continental market capable of attracting investment, expanding production and boosting trade.

    He, however, warned that the agreement would achieve limited results unless governments addressed barriers to cross-border commerce, particularly non-tariff restrictions.

    “The AfCFTA is trying to turn 54 countries into one market, so that way it’s easy for us to scale. But that will not happen until we remove the barriers, and many of them are actually non-tariff,” he said.

    Oyedele explained that effective implementation required consistent regulations, clear standards, supporting infrastructure and coordinated economic policies across the continent.

    He cited Nigeria’s National Single Window initiative as an effort to simplify border procedures and improve trade facilitation through technology.

    The minister also disclosed that Nigeria was developing an economic policy framework that incorporates its international commitments, including regional agreements.

    He said differences in trade, fiscal and monetary policies among African countries could make regional integration difficult, stressing the need for governments to align their approaches.

    Oyedele further identified policy consistency, strong institutions and public trust as essential conditions for attracting private investment to Africa.

    “Capital follows trust before it follows returns. They need to be able to plan and predict what you are going to do,” he said.

    Reflecting on Nigeria’s economic reforms, he said governments must clearly explain policy changes, communicate the consequences of inaction and implement reforms in the right sequence.

    He argued that reforms should be supported by legislation and strong institutions to ensure continuity beyond changes in political leadership.

    Oyedele also emphasised the need to protect vulnerable citizens from the immediate effects of economic adjustments while waiting for the benefits to materialise.

    He cited cash transfers reaching more than 10 million households and education funding supporting over 1.5 million students as examples of measures introduced to cushion the effects of reforms in Nigeria.

    The minister maintained that sustainable economic progress depended on combining macroeconomic stability with inclusive growth, reliable institutions, social protection and stronger regional cooperation.

  • Tinubu Says World Bank Report Validates Economic Reform

    Tinubu Says World Bank Report Validates Economic Reform

    Precious Nwonu, Enugu

    President Bola Tinubu has described the World Bank’s latest assessment of Nigeria’s economy as evidence that his administration’s economic reforms are yielding results, citing improvements in economic growth, government revenue and external reserves.

    Tinubu’s position was contained in a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, following the release of the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.

    The President said the report indicated that the country’s economy was becoming more stable and better positioned for sustained growth, while noting that poverty had stabilised for the first time since 2019.

    According to the statement, the World Bank reported that Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025.

    The bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028, while poverty was expected to decline gradually as economic growth outpaced population growth.

    On inflation, Tinubu said the report showed that the rate fell from 27.6 per cent in January 2025 to 15.2 per cent in December of the same year.

    However, the statement noted that higher global fuel prices linked to the conflict in the Middle East had slowed the decline in inflation. The World Bank expects inflation to ease to about 12 per cent by 2028.

    The President also highlighted improvements in Nigeria’s external position, saying the country’s current account surplus rose to $12bn, representing seven per cent of gross domestic product, in the first half of 2026.

    This compared with $8.6bn recorded in the corresponding period of 2025.

    According to the statement, gross external reserves increased from $45.5bn at the end of 2025 to $53.8bn at the end of August 2026.

    Tinubu further said the World Bank attributed a 69 per cent real-term increase in federation revenue between 2023 and 2025 to reforms introduced by his administration, with state governments emerging as the largest beneficiaries.

    He said states used the additional revenue to increase capital expenditure by 151 per cent in real terms over the same period.

    The statement identified roads and other transport infrastructure, agriculture, energy and housing as major areas that benefited from the increased spending.

    It added that 29 of 33 states shifted more of their spending towards economic infrastructure, while real social spending per person increased in all but one state.

    The President also cited the report’s findings that internally generated revenue rose in real terms in 31 of 35 states, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.

    Nigeria’s overall public debt was projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026, according to the statement.

    Tinubu said the findings reinforced his administration’s position that the removal of petrol subsidy, unification of the foreign exchange market and efforts to strengthen fiscal discipline had increased government revenue and created more resources for public investment.

    “The dividends of reform are becoming visible. But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people,” he said.

    He added that the government would continue implementing its Renewed Hope Agenda, with a stronger focus on inclusive growth and improved living conditions.

    Tinubu said the administration would expand targeted cash transfers, which he stated had reached more than 10 million households, accelerate the deployment of compressed natural gas, improve agricultural productivity and widen access to affordable healthcare and quality education.

    He also urged state governments to manage their increased revenues prudently and prioritise projects that would improve living standards, healthcare and education.

    The President commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, alongside state governors and other stakeholders, for their role in implementing the reforms.

    He said the government remained committed to accelerating the delivery of shared prosperity under the Renewed Hope Agenda 2.0.

  • Independence Day: Tinubu Declares Nigeria Has Entered Age Of Prosperity

    Independence Day: Tinubu Declares Nigeria Has Entered Age Of Prosperity

    Precious Nwonu, Enugu

    President Bola Tinubu has declared that Nigeria has moved beyond the period of economic reforms and entered what he described as an “age of prosperity,” following measures implemented by his administration over the past three years.

    Tinubu made the declaration in his Independence Day address to Nigerians on Thursday, marking the 66th anniversary of the country’s independence.

    The President acknowledged the economic difficulties faced by Nigerians, saying the country had endured years of insecurity, economic crises, political upheaval and other challenges since gaining independence.

    He said his administration inherited an economy burdened by what he described as deep structural distortions and difficult choices that could no longer be postponed.

    Using a cancer treatment analogy, Tinubu said previous governments had focused on managing the symptoms of the country’s economic problems rather than confronting their underlying causes.

    He defended the reforms introduced since his administration came into office, saying the measures had been difficult but were necessary to correct the direction of the economy.

    According to the President, Nigeria’s economy has grown by more than four per cent in 2026, with both the oil and non-oil sectors contributing to the growth.

    He also said oil theft had declined, inflation had fallen from its peak, foreign reserves had been rebuilt and the foreign exchange market had stabilised.

    Tinubu further stated that Nigeria recorded more than $6bn in non-oil export revenue in 2025, describing the figure as evidence of growing activity among Nigerian businesses.

    The President said the focus of his administration would now shift from economic stabilisation to achieving widespread prosperity.

    He identified reducing the cost of living as a major priority and said the government would pursue measures aimed at lowering the cost of producing and transporting goods.

    Tinubu said the administration would expand mechanised irrigation and dry-season farming, improve access to seeds and fertiliser, increase agricultural mechanisation and invest in storage and transportation.

    He also said the government was continuing to develop roads, railways and ports to improve connections between farms, factories and markets.

    On employment, the President said job creation, enterprise and industrial growth would remain central to his administration’s policies.

    He said the government planned to use Nigeria’s gas resources to power industries, support the revival of factories, expand digital connectivity and invest in skills needed by employers.

    Tinubu also called for increased production of Nigerian goods for both domestic consumption and export, while encouraging young Nigerians to build businesses and create employment opportunities.

    The President acknowledged that many Nigerians continue to struggle with food, education, healthcare and transportation costs.

    He said the hardship predated his administration and was the result of decades of low productivity, inadequate infrastructure and limited economic opportunities.

    Tinubu said the government was strengthening social interventions to support vulnerable households, while improving the National Social Register to ensure assistance reaches people who need it.

    He also highlighted the Nigerian Education Loan Fund as a means of helping students from low-income families access higher education.

    The President cited the Consumer Credit Corporation as another intervention designed to provide working Nigerians with access to credit for assets such as vehicles, solar systems and digital devices.

    Tinubu said his administration would continue working with state and local governments to strengthen primary healthcare, basic education and other essential public services.

    He added that salaries and pensions had been paid on time and in full since 2023, while reforms had also been introduced in the national pension system.

    According to him, the government’s social programmes were intended to support Nigerians while broader economic growth creates sustainable opportunities.

    Tinubu said defeating poverty would require sustained economic growth, discipline and the creation of millions of productive jobs.

    He maintained that the reforms had corrected the country’s economic direction and laid the foundation for long-term prosperity.

    “The age of reform has done its work. Now begins the age of prosperity,” Tinubu said.

    The President urged Nigerians to remain hopeful and united, saying the country had passed through difficult years and must now focus on building a future of greater opportunity.

    He concluded by calling on Nigerians to move forward together and avoid returning to policies that, in his view, had contributed to the country’s previous economic difficulties.

    “Let us go forward together, with faith in ourselves, faith in our country, and faith that the sacrifices we have made will yield their reward,” he said.

    Tinubu wished Nigerians a happy Independence Day and prayed for the continued progress of the Federal Republic of Nigeria.