Finance Minister Defends Tinubu’s Economic Reforms as Tough but Essential for Recovery
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has come out in strong defense of President Bola Tinubu’s bold economic reforms. Speaking through Sayande Okoli, the President’s Special Adviser on Finance and Economy, Edun emphasized that the removal of fuel and foreign exchange subsidies, though painful, were essential steps towards restoring macroeconomic stability and fostering long-term economic recovery.
The comments were delivered during the 13th BusinessDay CEO Forum held in Lagos, where Edun reaffirmed the government’s commitment to reforms under the summit’s theme “From Reform to Recovery.” According to Okoli, the reforms began immediately upon Tinubu’s assumption of office, with the swift elimination of fuel subsidies. This move, Edun argued, was a deliberate strategy rather than a reactionary measure.
Edun recalled international pressure from institutions like the World Bank and IMF, who warned that without removing subsidies, Nigeria would struggle to attract foreign investment. The Tinubu administration acted decisively in response, signaling a new direction for the country’s economic governance. The urgency and planning behind this shift were seen as critical to regaining investor trust and rebuilding the economy.
However, the reforms did not come without side effects. Okoli acknowledged that the removal of subsidies triggered a sharp depreciation of the naira and a rise in inflation, prompting the government to prioritize economic stabilization. She noted that while the subsidy cuts were immediate, their economic impact would take longer to normalize, requiring patience and consistent policy implementation.
Finally, the Minister’s representative highlighted the importance of ongoing dialogue between the public and private sectors. Government engagement with business leaders and media, she said, is vital in shaping responsive policies. The forum, which brought together corporate executives and policymakers, served as a platform for collaborative thinking amid Nigeria’s evolving economic realities.
Source: Punch