Tinubu administration inherited near-collapsed economy – Edun

• Published On: 12 January 2025 at 05:01

Mr. Wale Edun, Finance Minister and Coordinating Minister of the Economy, revealed that the Bola Tinubu administration inherited a near-collapsed economy but is steadily improving through bold, targeted reforms.

During a briefing with the Senate Committee on Appropriations on the 2025 Appropriation Bill, Edun explained the administration's economic stabilisation strategy, which focusses on fiscal recovery and growth.

"The administration inherited an economy on the brink, but through targeted reforms, we are now on a recovery path," he said.

"Our focus remains on growing revenues, improving fiscal discipline, and ensuring sustainable economic growth for all Nigerians."

He cited the previous year's GDP growth of more than 3% as evidence of the reforms' effectiveness.

Edun and Senator Abubakar Bagudu, Minister of Budget and Economic Planning, provided key updates on the 2024 budget's performance, highlighting the low capital expenditure implementation rate.

He reported that the overall performance of the 2024 budget is 43%, with recurrent expenditure fully implemented at 100% and capital expenditure trailing behind at only 25%.

The minister emphasised the government's commitment to extending the capital expenditure deadline until June 30, 2025, to ensure adequate funding and project completion.

"Our focus remains on growing revenues, improving fiscal discipline, and ensuring sustainable economic growth for all Nigerians," according to him.

He attributed the fiscal recovery to reforms implemented by the Tinubu administration, particularly market-based pricing of Premium Motor Spirit and changes to foreign exchange policy.

Edun stated that these measures could save the country up to 5% of previously lost revenue and pave the way for long-term economic growth.

He also praised key revenue collection agencies such as the Nigeria Customs Service and the Federal Inland Revenue Service for their improved performance under the administration's macroeconomic reform agenda.

Addressing the challenges of implementing the 2024 capital budget, Senator Bagudu cited cash flow constraints and procurement delays, but assured the Senate that steps are being taken to address these issues.

Edun echoed this sentiment, reaffirming the government's determination to overcome these challenges and accelerate capital spending to promote infrastructure development and job creation.

"Our macroeconomic reforms have begun to deliver results," the governor said.

"We are confident that consistent revenue growth will provide the resources needed to fund our developmental goals."