Nigeria’s Economic Overhaul Rebuilding Confidence, Attracting New Investments – Budget Minister

Nigeria’s economy is showing strong signs of renewal, driven by a wave of sweeping reforms and strategic policy shifts under President Bola Tinubu’s administration, according to Minister of Budget and Economic Planning, Abubakar Bagudu.

Bagudu, in a statement issued Wednesday, said the country is witnessing a revival of investor trust and macroeconomic stability, attributing the progress to deliberate choices anchored in the administration’s Renewed Hope Agenda.

“Over the past two years, the President has taken bold decisions, often tough, but they are now producing tangible results,” he said. “We are seeing steady GDP growth, a more stable exchange rate, and a return of investor optimism.”

The minister revealed that Nigeria’s economy has expanded for four consecutive quarters, with private sector interest growing across key sectors such as agriculture, infrastructure, and energy.

“There’s been an uptick in international partnerships—from Brazil, Belarus, and Saudi Arabia, particularly in agriculture. Multilateral institutions are increasingly showing confidence in Nigeria’s economic direction,” he noted.

Bagudu also underscored the importance of transparency and structural reform in rebuilding global investor confidence, highlighting that returns-focused policies have made Nigeria an attractive investment destination.

Highlighting progress in the energy sector, he pointed out that Nigeria has resumed refining crude oil domestically for the first time in 25 years. He credited President Tinubu’s approval for selling crude in naira to local refiners as a groundbreaking step that reflects belief in local capacity.

He described the elimination of fuel subsidies and the integration of the foreign exchange market as critical actions to stabilise Nigeria’s finances. “We were losing nearly 5% of GDP through fuel subsidies benefiting only a few. Removing that inefficiency was essential,” he explained.

Reforms in the foreign exchange system, according to Bagudu, have reduced distortions and created a more level playing field, which in turn has boosted revenue and revived private sector engagement.

On fiscal matters, Bagudu said the budgets for 2024 and 2025 were crafted to strike a balance between responsible spending and investment in key sectors like education, infrastructure, healthcare, and security. “The 2024 budget notably reduced the deficit, reinforcing investor belief in our fiscal discipline,” he said.

He also highlighted the administration’s respect for the Central Bank of Nigeria’s independence, particularly in managing the controversial N22.7 trillion Ways and Means financing. “That level of restraint has improved our international credibility,” he added.

Bagudu praised the coordination between the Presidential Economic Coordination Council and the Economic Management Team, led by Wale Edun and chaired by President Tinubu, for ensuring unified and purposeful governance.

“This is not just a government-driven effort. The private sector is a partner in the reform process, and the President’s leadership is widely respected by global economic stakeholders,” he said.

He acknowledged the challenges Nigerians are facing due to ongoing adjustments but compared the situation to physical training: uncomfortable now but necessary for long-term strength.

“This phase may be tough, but we’re building the economic muscles needed for growth,” Bagudu concluded. “The President is taking on the burden today to guarantee a more prosperous Nigeria for future generations.”