Nigeria: Insights from Wale Edun’s Addresses at the IMF and G24 Meetings

Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of Economy, took the stage on Thursday at the International Monetary Fund (IMF) and World Bank meetings in Washington D.C. His presence was also felt at the G24, represented by Ben Akabueze, Director General of the Budget Office of the Federation. Here are the key highlights from his discussions at these influential forums.

At the IMF and World Bank meetings, Edun emphasized Nigeria’s stance on borrowing, clarifying that the government led by President Bola Tinubu hasn’t resorted to borrowing from the Central Bank of Nigeria (CBN). Instead, he highlighted the commitment to using ‘Ways and Means’ to address liquidity oversupply. This approach aims to collaborate between fiscal and monetary authorities to combat inflation, stabilize prices, and lower interest rates for affordable borrowing, thereby driving economic recovery.

Edun stressed the importance of reducing reliance on borrowing and boosting domestic resource mobilization through tax reforms. Plans include streamlining tax structures, leveraging technology, and doubling tax revenue within three years. Despite concerns over Nigeria’s low tax-to-GDP ratio, the government remains focused on increasing revenue generation.

Switching gears, Ben Akabueze, representing Edun at the G24, urged member countries to increase investments and trading partnerships. This call aligns with the group’s goal of coordinating positions on international monetary policy and development financing. Akabueze highlighted Nigeria’s implementation of intervention programs and robust policies, which have begun to narrow the gap between parallel and official foreign exchange rates.

Edun also addressed Nigeria’s potential to attract foreign investments across various sectors, including manufacturing, agriculture, and oil and gas. He emphasized Nigeria’s vast arable land and suggested the country could become a major food exporter. Regarding the Dangote Refinery, Edun defended prioritizing domestic petroleum product demands over exports, questioning the logic of exporting refined products while still importing them.

He assured continued execution of the capital component of the 2023 supplementary budget and confirmed the implementation of the 2024 budget as planned, with promises of improved citizen welfare.

Overall, Nigeria’s proactive steps toward economic repositioning and openness to international collaboration signal a commitment to mutual growth and stability.

In a statement, the Minister highlighted the need for investment and increased trading relationships from G-24 member countries to ensure stable economic growth. He emphasized the positive outcomes of Nigeria’s economic policies and intervention programs under President Tinubu’s administration, which have narrowed the gap between parallel and official exchange rates.