Wale Edun, minister of finance, says the country is experiencing growth in revenue and renewed investor confidence.
Edun spoke in Abuja on Monday at the opening ceremony of the annual conference and general assembly of the West Africa Association of Public Accounts Committees (WAAPAC).
He said the government’s goal is “not to crowd out private enterprise” but to remove distortions, unlock opportunities, and create the right conditions for investment and job creation.
The minister said the federal government’s role is to serve as an enabler, policymaker, lawmaker, and catalyst, adding that Nigeria’s economic vision is anchored on a strong, resilient, and inclusive economy.
Edun said President Bola Tinubu has tackled the age-long distortions which were “bedevilling” the Nigerian economy and holding back its prospects of achieving its potential.
“Following the removal of the major distortions, the next step was macroeconomic stability, creating a predictable environment where private investment can thrive and grow at scale and drive productivity,” he said.
“And the second one was strategic public investments. Before you can have the private sector come in, the key pillars have to be in place before you can have people investing and engaging in economic activity.
“The fiscal buffers, the financing, and the public sector funding for high-impact investments in educational health and infrastructure, even agriculture and technology, are the foundations of macro stability that will allow growth to thrive.
“And with the removal of fuel subsidies and the liberalisation of the exchange rate, these difficult decisions have also been taken because they were necessary and they’re yielding positive results.
“In addition, the government’s priorities include debt transparency, growth-enhancing borrowing, domestic revenue mobilisation, as I’ve emphasised, and coordinated debt treatment. And what are the results? If we look, the Nigerian economy is turning the corner.
“The reforms are delivering measurable impact in terms of investor confidence, in terms of lower spending on fuel imports, greater energy self-sufficiency, and value added.”
Edun said states and LGs have enjoyed substantial increases in funding due to the removal of the petrol subsidy, adding that the debt service ratio reduced remarkably in 2024 to about 60 percent of revenue.
“It kicked up slightly as a result of some of the necessary funding that had to be done earlier this year. But the commitment and the objective are to bring down those debt service levels,” he said.
“Likewise, the debt-to-GDP ratio is a comfortable 38.8 percent, partly based on the fact that there was a usual and correct rebasing of GDP by the Nigerian Bureau of Statistics. So, our aim is to restore fiscal discipline.
“Nigeria stands at, I would say, not so much a crossroads as a bend, a turning point, turning round into the right direction. We do have rising revenues.
“There are growing investment inflows, growing foreign exchange inflows, as the central bank has remarkably achieved in recent months, as well as a stable exchange rate and a stronger foundation for inclusive growth.
“And in particular, the manufacturing sector has an important opportunity based on a very competitive exchange rate.”
Edun said while the country is experiencing a positive revenue trend, it is also grappling with elevated debt levels and significant debt service costs, similar to other nations.
He explained that the challenge of maintaining monetary stability has pushed interest rates higher — rising from eight percent in 2023 to nearly 20 percent at present.
Edun said the government is ensuring that debt obligations are met despite the higher rates, hoping that interest rates will also fall as inflation declines.
He said social safety nets must be preserved and strengthened, while governments commit to prudent, realistic budgeting, transparent reporting, and rigorous parliamentary oversight.
Edun added that decisive actions must be taken to strengthen oversight, deepen fiscal discipline and “ensure that public resources deliver real and measurable value and facilities that are fit for purpose to our people”.
Shaakaa Chira, the auditor-general of the federation, said the annual audit report provides parliament with independent evidence to strengthen accountability and debt oversight.
The auditor-general stressed that debt challenges cut across West Africa, describing WAAPAC as a vital platform for peer learning and reform.
Chira added that his office is committed to providing credible audits that promote transparency and sustainable development in the region.
