Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced that the significant increase in the country’s revenue recorded in the 2024 fiscal year is being strategically channeled into various social intervention programs aimed at improving citizens’ living standards and addressing critical societal needs.
Edun highlighted that the social investment program will target the 60% poorest population, directly impacting 20 million Nigerians. He also outlined a comprehensive economic reform agenda designed to reduce inflation, create jobs, and stimulate growth in key sectors such as agriculture, manufacturing, oil, and housing.
At the October 1, 2024 address, President Bola Tinubu revealed that government revenue for the first half of 2024 (January to June) exceeded N9.1 trillion, more than doubling the N4.06 trillion generated in the same period in 2023.
Speaking during the 30th Nigeria Economic Summit in Abuja, Edun elaborated on the increased revenue, stating it is being used to finance social programs that cushion the effects of essential but challenging economic reforms.
“In terms of revenue, the number one focus was domestic resource mobilization. By the first half of this year, revenue had more than doubled, thanks to the application of technology in reforming the civil service and ensuring compliance from government agencies and companies,” Edun said.
The minister emphasized that the social investment initiative includes direct cash transfers to support 20 million individuals from four million households, with plans to expand to 15 million households.
“This is how President Tinubu’s government is spending the money generated from improved oil production,” Edun explained.He further highlighted the government’s focus on food production to curb inflation, making food more available and affordable to reduce the cost of living for Nigerians.
Additionally, Edun revealed that reforms in the oil sector have attracted significant foreign investments, including $10 million from ExxonMobil and other key players.
The government is also supporting one million small and micro-enterprises with grants and loans totaling N75 billion, while larger companies are receiving N1 billion each at a nine percent annual interest rate to manage production costs amid foreign exchange adjustments.
Edun noted that these reforms, along with initiatives like the student loan scheme and consumer credit for workers, are part of President Tinubu’s broad strategy to drive economic growth and stability.
World Bank Country Director for Nigeria, Ndiamé Diop, also spoke at the summit, commending Nigeria’s revenue growth and its potential to improve the country’s revenue-to-GDP ratio.
He warned, however, that ongoing reforms are critical to avoiding fiscal instability, which had previously been a significant concern due to the country’s reliance on debt to cover deficits.
These combined measures, according to Edun, are expected to stabilize the economy and contribute to long-term sustainable growth.
