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We Inherited Bad Economy, Wale Edun Laments

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, recently addressed the issue of Nigeria’s economic condition, outlining the government’s approach to borrowing and its emphasis on economic stability. Edun’s remarks came following the inaugural Federal Executive Council (FEC) meeting in Abuja, where he spoke with State House correspondents.

Edun clarified the government’s stance on borrowing, stating that the federal government is currently not considering borrowing from either local or foreign sources. He highlighted the importance of creating a stable macroeconomic environment that fosters investment, growth, and job creation, rather than relying on borrowing.

Regarding the removal of petrol subsidies, Edun underscored that the resulting benefits would be reinvested across various sectors. This strategic allocation is intended to enhance government revenue and cultivate a more favorable business environment.

He stated, “The primary goal of our reforms at this juncture is to promote equity and attract investment from both domestic and foreign sources. This encompasses investment in sectors such as the financial markets, including the stock and bond markets.”

Edun emphasized the impact of reforms on government finances at all levels, given the changes in oil revenue resulting from the removal of subsidies. He explained that the depreciation of the exchange rate had influenced government income, underscoring the need to enhance fiscal health.

He further elaborated, “Our approach envisions that with the removal of fuel subsidies and the adjusted exchange rate, the government will witness an improvement in its financial position. This will be especially evident at the federal, state, and local government levels.”

Edun also acknowledged the economic challenges inherited by the Bola Tinubu-led administration. These challenges included high unemployment rates and inflation. He acknowledged that per capita income had declined, inflation had reached 24%, and youth unemployment remained a pressing concern.

He concluded by reiterating the commitment of President Bola Tinubu’s administration to steer the economy toward improvement. “Our mandate is to enhance the economy we inherited, and the President is fully dedicated to this mission,” Edun asserted.

In summation, Wale Edun’s statements highlighted the government’s prioritization of economic stability, job creation, and investment attraction over borrowing. This approach aims to capitalize on the removal of subsidies to bolster government revenue and stimulate economic growth across sectors

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