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We inherited a bad economy | FG won’t rely on borrowing —Wale Edun

 


Wale Edun, minister of finance and coordinating minister of the economy, says the federal government has no intention to borrow from any local or foreign organisation.

 

He spoke with state house correspondents at the end of the inaugural federal executive council (FEC) meeting on Monday in Abuja.

 

Edun said the benefits of petrol subsidy removal would be plowed back into various sectors in order to boost government revenue and improve the business environment.

 

“Clearly, the federal government is not in a position to borrow at this time. Rather, the emphasis has to be on creating a stable, macroeconomic environment. Stable inflation, stable exchange rate, an environment within which people can come and invest and thereby increase production and further grow the economy. Improve and create jobs and reduce poverty,” he said.

 

 “So, the aim of all reforms at this time is to focus on what we call equity to focus on investment to attract investment by Nigerians. Investment by foreign direct investors and even investment by portfolio investors that want to invest in the financial aspects of the Nigerian economy, such as the stock market, such as the bond market.

 

“So that is the plan. That is the expectation and it is that there will not be a reliance on borrowing. Rather, as revenues increase, as the benefit of removing fuel subsidy and the subsidy on the exchange rate, those mean more money for the government at all levels.

 

“Because, of course, through oil revenue, the federation earns dollars and if those dollars are feeding through, at let’s say, 700/750 or so naira to one dollar as opposed to 460 where it was before; clearly, that is repairing the finances of government at federal, state and local government levels.”

 

Edun said the President Bola Tinubu-led administration inherited a “bad” economy with an unacceptable high rate of unemployment and inflation.

 

“Per capital has fallen steadily, inflation is at 24 percent, unemployment is high, you know they are rebasing the way in which it’s calculated. Either way, it is high and youth unemployment is even unacceptably high. These are the key metrics that we have met,” he said.

 

“We met a bad economy and the promise of Mr. President is to make it better.”

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1 comment

  1. Wale Edu, may be you have forgotten so soon. Your master Tinubu was and still is the leader of APC. So which one is inheritance in this process. It has been APC in the past 8yrs and counting. Well, let me tell you, you guys do not have the magic wand to revive nigeria. Its that simple but you still will not allow the person that economic blue prints to take us out of the woods to do the job so you can learn. Occupy Aso villa because it is your turn cannot transform nigeria. You do not have what it takes. Look at the calibre of your ministers? These guys failed in their various states and even ministries they were appointed previously. Imagine appointing a Wike that has pathological grudge to destroy nigeria simply because he did not win his party nomination even when he was not a member of the party per say. He is still on that mission to destroy both APC and even the FCT. Just watch how it will happen.

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