Wale Edun, minister of finance and coordinating minister of
the economy, says the last time the foreign exchange (FX) rate was stable, and
interest rates were affordable, was a decade ago.
Edun spoke about the state of the economy at a press
briefing in Abuja on Friday.
He said a weak, depreciating exchange rate, as well as
security concerns, resulted in an economy “that is not growing and that is not
lifting our Nigerians out of poverty”.
“If we think back to when was the last time when the economy
was stable, when it was growing, when inflation was low, when the exchange rate
was stable, and when interest rates were affordable; that period was about a
decade ago,” he said.
The minister said “economic growth was about 6 percent
around 2013 to 2014”.
The increase, according to Ebun, was due to the worldwide
commodity boom that began around 2010.
“Oil prices were high; volumes were high,” he said.
“Nigeria earned and
the government earned into its coffers over $80 billion per annum, compared to
the figure now of around $25 billion. So you can see the difference.
“And what that points to is that there was a time when
government had enough foreign exchange. It had enough naira revenue to meet its
obligations and to provide the funding for growth of the economy.
“It had enough foreign exchange such that when people came
in to invest and they needed to import raw materials, import machinery,
government could provide the wherewithal.”
‘GOVERNMENT SHOULD
ALLOW PRIVATE FUNDING’
This, the minister said, indicates that if the government
does not have the funds, it must facilitate and allow private funding.
He advised the government to accommodate other sources of
funding, such as foreign direct investment, as well as domestic investment by
Nigerians in all areas.
“And we saw some of that in Lagos. When Mr. President was
governor of Lagos, he opened up the power sector to private investment, the
road sector to private investment infrastructure, waste management, even
cemeteries to private investment, because government did not have the funds,”
he said.
“And they were those who were willing and able to provide
jobs and grow the economy by making those investments.
“So, that is a
pointer to the fundamentals of the president’s strategy, private investment and
worldwide, there are huge flows of foreign direct investment, once you give
investors the right conditions.
“Specifically, where are we headed, President Bola Ahmed
Tinubu has pointed out, in priority areas where he is going to take Nigeria.
And his key priorities are to improve the lives of Nigerians by providing food
security, by ending poverty.”
Edun said the president is concerned about job creation,
access to capital, particularly consumer credit that makes foods affordable to
the average Nigerian; and utilising human resources by focusing on inclusivity
— women and youth.
In this manner, he said, everyone has an opportunity to
contribute to the growth of the economy and society.
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