Nigerian Govt Ends Ways And Means Borrowing Era – Edun

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has stated that the Federal Government has exited from the Ways and Means borrowing mechanism.

Mr Edun stated this in Abuja on Thursday, 25th July during the half-year review Ministerial Press Briefing with the theme: “Economic Recovery and Growth: Progress and Prospects 2024.”

According to a statement signed by Mohammed Manga, Director, Information and Public Relations, Ministry of Finance, Edun also disclosed that the Federal Government has made significant strides in its economic reforms, and is well on its way to achieving a step-change in its revenues in line with the 2024 budget.

The statement further said Edun highlighted successes of the Government’s reforms, citing a projected budget deficit of 4 per cent in the 2024 Fiscal Year.

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“He also acknowledged the temporary hardships caused by the reforms but assured that Nigerians would soon benefit from the expected outcomes as the well coordinated economic policies of the Federal Government are beginning to yield results as shown in the slowing in the rate of growth of inflation, increasing foreign investments relative to the same period in the previous year, amongst other positive fiscal yardsticks that are being noted.”

The Minister also stated that one of the major priorities of the President Bola Ahmed Tinubu-led Administration in the immediate term is to  drastically reduce food prices which has remained a major driver of inflation and focus on providing all the necessary support to increase local food production.

Edun stress the President’s commitment to the welfare of ordinary Nigerians and the Government’s efforts to ensure transparency and accountability in its social protection initiatives including but not limited to the acceleration of the direct benefit transfer programme that has now been restarted following an initial pause of the programme to improve transparency in its delivery.

He mentioned that, following the resumption of payments, over 600,000 households have already received this direct transfer this week.

Measures to Boost Forex Liquidity 

Minister also disclosed plans of the Federal Government to issue domestic USD denominated securities of up to $500 million, in the first instance to attract investment from Diaspora Nigerians and Nigerians with savings held abroad as part of efforts to further improve foreign exchange liquidity.

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“Edun acknowledged the Supreme Court’s judgment on direct payment of federation allocations to Local Government Councils, and reiterated the Government’s commitment to implementing the judgment.

“The Minister affirmed that with the outcome of the first half of 2024, indeed the Nigerian economy is turning the corner; and with macro-economic stability, the economy is being well positioned for sustained and inclusive growth that creates jobs, lifts millions out of poverty, and drives domestic and foreign investments that would improve the general well-being of the average Nigerian,” the statement added.