Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the country must sustain a minimum of 7% annual economic growth to meaningfully uplift its poorest citizens. Speaking at a policy dialogue on local government fiscal autonomy in Abuja, Edun highlighted that the Tinubu administration has already begun addressing key macroeconomic distortions, laying the groundwork for stability and long-term resilience.
Edun explained that the government’s reform journey is transitioning into its second phase, focusing on stabilising inflation, narrowing fiscal deficits, and increasing revenue. He noted that the earlier phase successfully tackled major macroeconomic imbalances related to food pricing, employment, and structural bottlenecks. According to Edun, these steps are essential for ensuring that economic gains reach Nigeria’s most vulnerable populations.
The minister welcomed the Supreme Court’s recent ruling mandating direct funding for democratically elected local governments, calling it transformative. He argued that true fiscal autonomy at the grassroots level is crucial for inclusive growth, as it decentralizes decision-making and resource control. Edun also unveiled federal plans to support local governance through national nutrition initiatives and digital infrastructure projects across Nigeria’s 774 LGAs.
Victor Muruako, chairman of the Fiscal Responsibility Commission, urged local governments to match their new autonomy with transparency and discipline. While autonomy permits LGAs to seek development financing directly, Muruako warned against irresponsible borrowing. He stressed that financial freedom should be geared toward improved human development and not abused for political or institutional gain.
Ojobo Ode Atuluku, Chair of Agora Policy, emphasized the need for comprehensive institutional reforms beyond legal judgments. She called for the dismantling of political patronage systems and a revamp of local elections to create more accountable governance. To support this goal, Agora Policy announced the upcoming launch of a Local Governance Accountability Portal to track funding, officials, and historical performance of local governments since 1999.
Source: The nation