File photo for representational purposes only.
Abuja: As one of the largest economies in Africa, Nigeria is seeing signs of relative stability despite the challenges faced in the past 18 to 20 months, a senior official said Thursday.
Wale Edun, minister of finance and coordinating minister of the economy, told the media here that the Nigerian economy narrowly avoided collapse, having relied on illegally borrowed central bank funds that far exceeded regulatory limits. "Where we are now is that, in the last quarter of 2024, the economy grew at roughly 3.84 percent, close to the annual target of 3.4 percent," Edun said.
The senior official noted that inflation had begun to slow down, dropping by 1.3 percentage points between January and February, and food inflation was also declining. Data from the National Bureau of Statistics showed that the West African country's inflation rate eased to 23.18 percent in February.
Edun said stabilizing the exchange rate had positively impacted imported goods and services, such as healthcare and education, adding that government revenues increased by 20 percent in 2024, with positivity in the country's trade balance.
"All economic indicators are moving in the right direction, and most importantly, the cost of living is gradually improving. With this progress, the government is now focusing on further stabilization and creating an environment that encourages private-sector investment," the minister noted.
According to him, the government was leveraging technology to enhance revenue generation from government-owned enterprises.
He added that the government-proposed tax reform bill is expected to increase the top-end personal income tax rate from 18.6 percent to 25 percent while tightening government expenditure.
