…As Nigeria exits Ways and Means Borrowing for economy stability
Joel Ajayi
The Minister Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun, has revealed that the immediate priority of present government is to ensure reduction in the high cost of food, supporting MSMEs, to reduce inflation as well as provision of critical infrastructure that will improve 5he standard of living of every Nigerians.
FG who has made significant strides in its economic reforms, well on its way to achieving a step-change in the revenues of the Federal government; closely in line with the budget for 2024.
To this end, government announced its exit from the Ways and Means borrowing mechanism for economy stability and growth.
Speaking at the Quarterly Ministerial Press Briefing held on Thursday in Abuja the Minister of Finance and Coordinating Minister of the Economy who highlighted the direction and travel of the present government in the in the area of economy recovery and growth, progress and prospect.
Theme: Economic Recovery and Growth: Progress and Prospects 2024 half year review.
According to him, the most critical thing for President Ahmed Tinubu is to ensure food prices go down by all means.
The Minister informed that one of the major priorities of the President Bola Ahmed Tinubu-led Administration in the immediate term is to reduce food prices and focus on providing all the necessary support to increase local food production, given the impact of high food prices on inflation. He noted that efforts are underway to achieve this goal.
He highlighted successes of the Government’s reforms, citing a projected budget deficit of 4% in the 2024 Fiscal Year. He also acknowledged the temporary hardships caused by the reforms but assured that Nigerians would soon benefit from the expected outcomes as the well coordinated economic policies of the Federal Government are beginning to yield results as shown in the slowing in the rate of growth of inflation, increasing foreign investments relative to the same period in the previous year, amongst other positive fiscal yardsticks that are being noted.
“Part of what government is doing is to reduce high cost of food is the released of 20 trucks each to all the state governors and some ongoing initiatives toward stabilization of food price “
He then appealed to all Nigerians to give president Tinubu more time toward ameliorate the suffering of Nigerians especially the vulnerable.
Edun emphasized the President’s commitment to the welfare of ordinary Nigerians and the Government’s efforts to ensure transparency and accountability in its social protection initiatives including but not limited to the acceleration of the direct benefit transfer programme that has now been restarted following an initial pause of the programme to improve transparency in its delivery. He mentioned that, following the resumption of payments, over 600,000 households have already received this direct transfer this week.
As part of efforts to further improve foreign exchange liquidity and to showcase the resilience of the Nigerian financial system as economic stability takes root, the Minister also announced plans for the Federal Government to issue domestic USD denominated securities of up to US$500 million, in the first instance to attract investment from Diaspora Nigerians and Nigerians with savings held abroad.
Edun acknowledged the Supreme Court’s judgment on direct payment of federation allocations to Local Government Councils, and reiterated the Government’s commitment to implementing the judgement .
The Minister affirmed that with the outcome of the first half of 2024, indeed the Nigerian economy is turning the corner; and with macro-economic stability, the economy is being well positioned for sustained and inclusive growth that creates jobs, lifts millions out of poverty, and drives domestic and foreign investments that would improve the general well-being of the average Nigerian.
