Nigeria’s Economic Recovery Gathers Momentum — Edun

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has declared that the nation’s economic recovery has officially begun, following months of consistent policy reforms and fiscal adjustments introduced by the administration of President Bola Ahmed Tinubu. Speaking during a recent media briefing in Abuja, Edun said key indicators show that Nigeria’s economy is gradually regaining stability, with growth driven by renewed investor confidence, foreign exchange reforms, and improvements in fiscal management.

According to the minister, several measures introduced in the past year have started yielding positive results, including the removal of fuel subsidies, foreign exchange market liberalisation, and increased revenue mobilisation through improved tax collection. He said these reforms were initially painful but necessary to restore macroeconomic balance and lay the foundation for sustainable growth.

“The evidence of recovery is becoming clearer. We have stabilised the foreign exchange market, reduced dependence on central bank financing, and recorded a healthy trade surplus. Inflationary pressures are easing gradually, and our reserves are improving. These are clear signs that economic recovery has taken off,” Edun said.

He explained that the government’s primary objective has been to create a stable and transparent economic environment that encourages private-sector participation. The minister added that efforts by the Federal Government to attract both local and foreign investment are beginning to yield results, particularly in sectors such as manufacturing, agriculture, technology, and energy.

Recent data from the National Bureau of Statistics (NBS) supports Edun’s statement, showing marginal improvements in economic performance. Nigeria’s GDP growth rate, which had slowed in the second quarter of 2024 due to high inflation and currency volatility, rebounded in the first quarter of 2025, driven by increased production in non-oil sectors. The manufacturing and services industries recorded strong gains, while the agricultural sector showed signs of recovery following improved access to inputs and financing.

Edun emphasised that the administration’s economic strategy is anchored on fiscal discipline, revenue diversification, and targeted investments in infrastructure and human capital. He said the government has reduced reliance on Ways and Means borrowing from the Central Bank of Nigeria (CBN), opting instead for more sustainable financing options that minimise inflationary effects.

The finance minister also noted that Nigeria’s trade balance has turned positive for the first time in years, with exports exceeding imports. He attributed this to increased crude oil production and new incentives for non-oil exports. He added that Nigeria’s foreign reserves have risen steadily, providing a stronger buffer for the naira and greater stability in the foreign exchange market.

Despite these gains, Edun acknowledged that challenges remain. Inflation, though slowing, continues to erode purchasing power, while unemployment and cost of living pressures persist. He assured Nigerians that the government is working to cushion these effects through targeted social investment programmes, subsidies for small-scale producers, and ongoing efforts to strengthen food supply chains.

According to him, the success of the economic reforms depends on continued coordination between fiscal and monetary authorities. The CBN’s monetary tightening measures, alongside fiscal reforms, have contributed to stabilising the naira and moderating speculative demand in the foreign exchange market. “We are working hand-in-hand with the Central Bank to ensure that the monetary and fiscal policies complement each other. The focus is on growth, stability, and jobs,” Edun stated.

Economic analysts have described the government’s current trajectory as a cautious but positive turnaround. Financial experts note that while Nigeria’s economy is not yet out of the woods, the indicators suggest the beginning of a new growth cycle. They pointed out that fiscal responsibility, improved oil revenues, and a stronger regulatory framework are key elements driving the recovery.

Some analysts also observed that the return of foreign portfolio investors to the Nigerian Exchange Limited (NGX) is a strong sign of restored confidence. The equities market has recorded steady gains in recent weeks, driven by demand for banking and industrial stocks. This, according to market watchers, indicates that investors believe the economy is stabilising.

In addition, Edun reiterated that President Tinubu’s Renewed Hope Agenda remains central to the government’s economic direction. He said the administration’s priority is to ensure inclusive growth that benefits all Nigerians, not just the elite. Programmes focusing on youth empowerment, digital skills, and micro-enterprise support will be expanded under the 2026 budget to promote productivity and job creation.

He maintained that Nigeria’s economic fundamentals are gradually strengthening and that the reforms will yield greater results over the next few quarters. “The difficult decisions we took last year are paying off. We have moved from an economy struggling to survive to one that is beginning to thrive. The journey is long, but the direction is right,” he added.

Observers believe that if current reforms are sustained, Nigeria could achieve a stronger fiscal balance and single-digit inflation by the end of 2026. They, however, urged the government to maintain transparency, curb corruption, and ensure that the benefits of recovery reach ordinary Nigerians.

 

As the government continues to consolidate on these early gains, the finance minister’s declaration that “economic recovery has begun” captures the renewed optimism that Nigeria’s economy is indeed finding its footing after years of instability and economic uncertainty.