Economic Reforms Prevented Deeper Hardship in Nigeria, Says Oyedele

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has maintained that the Federal Government’s economic reforms prevented more severe economic difficulties, despite the hardship many Nigerians continue to experience.

Oyedele made the remarks on Wednesday while speaking at Chatham House in London, where he defended the removal of the petrol subsidy and the unification of the foreign exchange market. He acknowledged, however, that the benefits of improved macroeconomic stability had yet to translate sufficiently into better living conditions for households.

He said falling headline inflation did not necessarily mean that families were finding essential goods more affordable, particularly food. According to him, food inflation remained a major concern because of low agricultural yields, seasonal farming practices, post-harvest losses, inadequate storage and transportation, and insecurity in farming communities.

The minister cited tomato production as an example of the challenges affecting food supply, stating that Nigeria loses up to 60 per cent of its tomato output after harvest.

To address these problems, he said the government was prioritising agricultural technology, irrigation, storage facilities, rural roads and improved security in farming areas. It was also expanding access to financing for smallholder farmers and small businesses.

Oyedele disclosed that the government’s cash transfer programme had reached more than 10 million households, with payments made digitally and beneficiaries verified through their National Identification Numbers to improve transparency and reduce diversion of funds.

Defending the reforms introduced under President Bola Tinubu’s administration, the minister said the country faced an unsustainable economic situation in 2023, characterised by heavy petrol subsidy expenditure and multiple foreign exchange market rates.

He argued that reversing the policies would expose Nigeria to deeper economic problems, even as he acknowledged that the adjustments had placed considerable pressure on households and businesses. Inflation peaked at 34.6 per cent in November 2024, he noted, describing the resulting hardship as a real cost that the government must account for.

Oyedele said the administration’s performance should not be assessed solely through macroeconomic indicators but also by whether economic improvements were improving the daily lives of citizens.

He added that the next phase of the government’s programme would focus on converting economic stability into faster and more inclusive growth through private investment, infrastructure development and increased domestic production.

The minister said the government was working to reduce reliance on public borrowing by attracting private capital into priority sectors, including power, transport, agriculture and agro-processing.

He also pledged continued transparency in reporting public revenue, borrowing, debt servicing and expenditure, arguing that credible economic policies and stronger institutions were necessary to sustain the reforms beyond the 2027 general elections.