NewStats: 3,261,379 , 8,173,841 topics. Date: Thursday, 29 May 2025 at 04:59 AM 135q53

Minister of Finance, Wale Edun, has highlighted the unique difficulties facing the country as it grapples with inflation far more resistant to control than that of advanced economies, saying that the situation is compounded by structural factors including dependency on imports and a large informal economy.

Addressing the National Economic Council (NEC) on Tuesday at the Presidential Villa, Abuja, he said while developed nations have largely achieved stable inflation rates, Nigeria faces ongoing economic challenges linked to high inflation, subsidy removal, and foreign exchange reforms, which have placed significant strain on the populace.

Edun presented a range of government measures intended to mitigate the economic pressures on Nigeria’s citizens and spur sustainable growth.

He told correspondents that in his briefing to NEC, he emphasized the contrast between Nigeria’s inflationary pressures and the controlled inflation in advanced economies.

According to him, countries like the US and many in the Eurozone are seeing inflation levels close to their target of around 2% per annum, with countries such as Italy experiencing inflation rates even lower than 1%.

This stability is partly due to what Edun described as a “soft landing,” achieved by carefully balancing inflation control measures with continued economic growth and infrastructure spending.

“In our case,” he said, “inflation remains high, growth is relatively low, and debt levels continue to challenge economic stability.” Nigeria’s challenges are compounded by structural factors that affect inflation, including dependency on imports and a large informal economy.

He said the Tinubu istration has taken bold steps to address Nigeria’s economic woes by implementing long-overdue reforms, including the removal of subsidies on petroleum and foreign exchange.

According to the minister, previously, these subsidies cost the nation between $15 and $20 billion annually, a burden equivalent to around 5% of the country’s GDP.

While the subsidies’ removal was necessary, Edun acknowledged that it has led to a substantial increase in living costs, disproportionately affecting Nigeria’s poorer citizens.

However, he pointed out that the revenue freed up from these subsidies is now being redirected into critical social and infrastructure investments.

He noted that one of the istration’s notable initiatives is requiring local refineries to pay for crude oil in Naira, thereby stabilizing domestic petroleum pricing and reducing dependency on volatile international fuel markets.

According to Edun, this policy change alone has yielded an immediate fiscal boost of approximately N700 billion per month since October, with the funds funneled into the Federation to national priorities.

The minister outlined a series of welfare initiatives aimed at alleviating the cost of living for Nigeria’s most vulnerable citizens.

These include a new minimum wage increase, direct financial assistance to households ed on the government’s social , and wage for low-income workers.

Edun reported that financial payments have been disbursed to five million households, benefiting an estimated 25 million Nigerians.

Additionally, these payments are processed biometrically to ensure accuracy and avoid fraud.

He said a robust consumer credit scheme was also introduced to provide workers with access to affordable loans for essential goods and services.

Edun noted that over N3.5 billion has been distributed to 11,000 beneficiaries, enabling them to purchase compressed natural gas (CNG) kits for a more affordable and eco-friendly alternative fuel source.

Meanwhile, he stated, the istration’s student loan program has reached over half a million students, disbursing N90 billion to help cover educational costs and living expenses.

According to the minister, with food inflation a critical issue, the government has taken steps to address both the affordability and availability of staple foods.

Edun outlined a program to allow millers to import brown rice duty-free, which will be processed and sold at lower prices to ease the burden of high food costs.

In addition, he stated, the istration is encouraging increased domestic crop production, particularly in rice and wheat, with plans to 600,000 farmers in planting seasons through subsidies on fertilizers, herbicides, and improved seeds.

Edun argued that recognizing the vital role of small businesses in Nigeria’s economy, the government has allocated nearly N50 billion in grants to micro-enterprises, 90% of which has already been distributed.

Small and medium enterprises (SMEs) and large-scale industries are also receiving 9% interest loans to bolster growth and create jobs, with loan sizes capped at N1 billion to prevent excessive debt accumulation.

On foreign exchange and dollar repatriation programme, while acknowledging the impact of foreign exchange volatility on inflation, Edun announced a nine-month program encouraging Nigerians to deposit their offshore dollars into the local banking system.

The program, which begins October 31, aims to draw out dollars from informal holdings and integrate them into the formal economy.

The finance minister emphasized that no penalties or taxes would be imposed on deposits made through this program, as long as the funds comply with anti-money laundering regulations.

This initiative, Edun explained, seeks to strengthen Nigeria’s foreign reserves and ease exchange rate pressures, ultimately aiming to improve currency stability. The program guidelines, developed by the Ministry of Finance in conjunction with the Central Bank, will be released in detail in the coming weeks.

He underscored the government’s commitment to navigating Nigeria through this challenging economic period.

“We are making strides in addressing the country’s long-standing economic vulnerabilities,” he said, noting that the istration’s policies are both immediate and forward-looking, focused on creating an economy capable of sustained growth and resilience.

As Nigeria continues to battle its inflation crisis, the Tinubu istration remains under pressure to deliver on its promises to stabilize the economy and alleviate the financial strain on its citizens.

Edun expressed optimism that Nigeria can overcome its inflationary challenges and chart a path toward economic stability through a mix of subsidy reforms, targeted social interventions, and innovative financial policies.

https://tribuneonlineng.com/nigerias-inflation-made-worse-by-import-dependency-large-informal-economy-edun/amp/

Okay

We should stop giving excuses over voting incompetent leaders.

We've had good economy overtime even while depending on import goods for the country.

Tinubu is very ignorant of his economic policies and I don't hink he's consulting anyone. He's just dishing the stupid policies out and inflicting suffering from all angles.

Abi

Imagine wasting our FX to import embalmed fish and chicken

helinues:
Abi

Imagine wasting our FX to import embalmed fish and chicken

Learn how economies work oga

This man should stop speaking ego massaging grammar and hit the nail on the head for uncle Yekini to know he is seriously failing. Lack of imports connotes local production and he cannot man up to those in charge to tell them squarely. Instead he pretends their few chesslike moves and CBN polixies is what controls Naira value.

Local production is down yet they expect the people not to seek imports and at same time, submit their dollar and forex to govt to keep Nigeria as one.
Food. Clothes, Pharmaceuticals. Machines. Name it. Local production has suffered under this govt.

AFONJAmiracle:


Learn how economies work oga

Economies work by solely depending on importation? Tell just one country that excels by importing just everything. Just tell me one.

This was the same mistake Venezuela made that contributed to the crash of the economy. They sold crude just like us and imported just everything, like we are doing. From food to drugs, to tech, to wears and textiles. Everything was imported... Because we have people like you who say, oh well, let's import everything because we don't have to brains to build and grow an economy organically.

Even before the US sanctions on Venezuela, the economy was already crumbling. There's no magic out of this mess. Either we become productive or we crumble as a race.

Life isn't for the weak and if we as blacks can't take the painstaking journey towards industrialization. Then we will continue to deal with poverty.

Efewestern:


Economies work by solely depending on importation? Tell just one country that excels by importing just everything. Just tell me one.

This was the same mistake Venezuela made that contributed to the crash of the economy. They sold crude just like us and imported just everything, like we are doing. From food to drugs, to tech, to wears and textiles. Everything was imported... Because we have people like you who say, oh well, let's import everything because we don't have to brains to build and grow an economy organically.

Even before the US sanctions on Venezuela was already crumbling. There's no magic out of this mess. Either we become productive or we crumble as a race.

Life isn't for the weak and if we as blacks can't take the painstaking journey towards industrialization. Then we will continue to deal with poverty.

Ignore that guy, he's a troller

helinues:


Ignore that guy, he's troller

I've come to the conclusion that the Nigerian people and her government do not want the country to progress.

The whole black continent is a mess because we have been doing one thing over and over again. Under our nose, European/Asian refineries captured our west African markets when we have oil producing Nigeria. We could have cornered the whole region with our refined products and this would have created thousands of jobs.

But well, we have zero thinking people occupying government seat that prefer the easy way out of everything while they loot.

..empty headed incompetent governor..

..always releasing useless press statements without having an iota of idea what he is talking about..

..trial & error Ojuelegba emilokonomics which has destroyed the economy..

..no policy is working just increasing tax upandan & releasing hopeless statement

helinues:


Ignore that guy, he's a troller

Learn how economies work jobless man

Importation of chicken and fish is not your problem

helinues:
Abi

Imagine wasting our FX to import embalmed fish and chicken

..you snatched & grabbed emilokan power..& still gnashing about importers..

..will you gnash until you discover one achievement of bulaba..?

..hellanuis..

Tochi3:


..you snatched & grabbed emilokan power..& still gnashing about importers..

..will you gnash until you discover one achievement of bulaba..?

..hellanuis..

We need to knock sense enter helinues and APC chanters head

AFONJAmiracle:


We need to knock sense enter helinues and APC chanters head

..sense will never enter their heads..tribalism, nepotism, bigotry, hatred has eaten them up..

..they csn never have sense again..

Na una dey make an worse every single day !

Your commander in Chief can. Not even give a simple directive to NNPC to stop fuel importation because na una hands dey inside Nyafu Nyafu .

These blockheads have finished Nigeria with their deliberate cluelessness and lies. Is this how they built Lagos ?

This is why I keep saying that Tinubu’s head (including all those serving in his istration) is not correct.

So, you know that OUR ECONOMY IS IMPORT-DEPENDENT; and yet - YOU DECIDED TO FLOAT THE NAIRA?

You also know that NONE OF OUR REFINERIES ARE WORKING; and yet - YOU REMOVED THE PETROLEUM SUBSIDY?

I SINCERELY WISH THE MILITARY CAN TAKE OVER AND SENTENCE ALL OF YOU TO FIRING SQUAD FOR THE UNTOLD SUFFERINGS & IRREPARABLE DAMAGES THAT YOU HAVE BROUGHT TO NIGERIANS.

Tinubu sacked the wrong ministers. Wale Edun and Cardoso should have been sacked if Tinubu is serious about turning things around.

They blame everyone else but themselves for the mess they have sunk this country into.

BeeBeeOoh:


https://tribuneonlineng.com/nigerias-inflation-made-worse-by-import-dependency-large-informal-economy-edun/amp/

And how are you encouraging businesses to remain? a huge no of multinational are closing shop..and you are blowing grammar about import and export. U can't keep the ones already presents and you want others to come shey no be juju be that. Every quarter they keep posting billion of naira of loss thanks to your policies

Freed up is 15-20billion dollars so how much is external reserve increase since your media touted /informed/out of form/self-claimed reforms from hell

Since you guys entered no single significant achievement is always one excuse or the other. Get to work and leave complains abeg . Your policies are crippling the nation try and fix them

we are not the only import dependent economy we have hyper inflation cos

what we consume are majorly imported and most of these items are on contra ban list or levied with crazy import duties .... thats a call for inflation.

if govt can reduce import duties and lift some items from being contra ban it will go a long way to cut down inflation


My probem with Tinubu govt is how they pretend and look helpless as if they are not the ones spiking inflation, reverse most of your policies n lets see

Our leaders are evil clueless and confused SMH

Education knows this, yet he creates policies that hampers growth of productivity. If 1 ministry cannot coordinate and synergize their own policies, how will the entire cabinet of plenty ministries coordinate their activities to align and aim for similar goal.

We know the importers. The same ppl making noise about PRODUCTION.

Its alwats my container dey for sea. Container of fake drugs, spare parts etc

The very reason why they're crying all over social media about $ as if naira is no more Nigeria currency

iamtoofan:
we are not the only import dependent economy we have hyper inflation cos

what we consume are majorly imported and most of these items are on contra ban list or levied with crazy import duties .... thats a call for inflation.

if govt can reduce import duties and lift some items from being contra ban it will go a long way to cut down inflation


My probem with Tinubu govt is how they pretend and look helpless as if they are not the ones spiking inflation, reverse most of your policies n lets see

If government reduce import duty on food, it kills our agriculture sector and the same ppl will smuggle the food to neighboring countries.

Incompetence fool

Which kind human being is this

We are not interested in tales

GET TO WORK!!!!

But NBS stats is showing surplus trading balance in our favour nau.
Check my signature for affordable foreign used phones.

lol.

You, your boss, lawmakers all use foreign made cars and vehicles that cost millions of USD in total.

You’re as guilty as the Nigerians and informal sectors you blame.

Rubbish talk ...how Much be rice now... No be for Naija we dey produce now

BeeBeeOoh:


https://tribuneonlineng.com/nigerias-inflation-made-worse-by-import-dependency-large-informal-economy-edun/amp/