Nigerians Struggle with Economic Reforms, But Gains Are Emerging – Finance Minister Wale Edun

Wale Edun, Nigeria’s Minister of Finance, acknowledged the financial strain and unease many Nigerians face due to President Bola Ahmed Tinubu's economic reforms. Speaking at the unveiling of the "Federal Civil Service Policies and Guidelines on Rewards" on Friday in Abuja, Edun attributed the challenges to the failure of previous administrations to implement necessary reforms.

The economic reforms, introduced in June 2024, included the removal of fuel subsidies and the floating of the naira, measures aimed at stabilizing the economy but with immediate impacts on the cost of living: Fuel prices surged from N234 to over N1,060 per litre. The naira’s value depreciated from N195 to N1,652 per dollar. These changes significantly affected purchasing power, with headline inflation climbing to 33.88% and food inflation reaching 39.16% in October 2024, as reported by the National Bureau of Statistics.

Edun emphasized that the reforms, though painful, are yielding benefits and correcting long-overdue economic mismanagement: "After 18 months of bold and necessary reforms that Mr. President has implemented, the country has changed. Yes, the reforms were so long overdue that it caused an element of pain, discomfort, difficulty, and increased cost of living. But the successes and the gains are coming through."

He highlighted key achievements such as: Market-based foreign exchange pricing generating increased revenue for federal, state, and local governments. Savings equivalent to 5% of GDP from eliminating subsidies. While the economic reforms have placed significant pressure on households, the federal government remains optimistic about long-term benefits. According to Edun, the policies are paving the way for fiscal sustainability and future growth despite the immediate hardships faced by Nigerians.