Wale Edun, Minister of Finance, has reassured Nigerians that the economy is booming under President Bola Tinubu’s leadership, pointing out that the country’s non-oil exports totaled $55 billion last year.
Edun disclosed this information while briefing the press at the State House in Abuja on Tuesday about the outcome of President Tinubu’s meeting with the council of states.
Edun added that the increase in exports has resulted in a trade surplus, indicating that both domestic and foreign investors are progressively returning to the economy. Edun stated that despite the high inflation rate, investors are creating substantial opportunities in the economy, notably in the infrastructure sector.
“In broad terms, the economy is growing. The balance of payment in particular. The trade balance and the current account balance are in surplus. The exchange rate is stabilizing. The inflation, though uncomfortably high for the liking of Mr. President and his team, is slowing and set to fall.
“Foreign investors, domestic investors who are participating in important private-public partnership, particularly in infrastructure sector,. Foreign direct investment is beginning to recover, I will say. On that basis, we reported, in particular, the opportunities for the economy to stabilize.
“We identified in the meeting that we had non-oil export at $55 billion last year with tremendous room to grow,” Edun said.
Emphasis on Service Sector
In addition, Edun stated that the government is focusing on the service sector to create job prospects for young Nigerians. He added that these young people working in the field can outsource their abilities via the internet and phone.
According to the Minister, the government will continue to support the economy with a variety of strategic measures aimed at lowering the high cost of living caused by rising inflation.
“In particular, we identify theservices, and service sector—such as software services, accounting services, computer services—that can be provided by young Nigerians. These Nigerians are staying in Nigeria and providing services through the internet and telephone. Outsourcing was a big area we emphasized.
“In a nutshell, we reported that there was good progress being made, and efforts are going to continue to ensure that the interventions to ameliorate the high cost of living for individuals, agricultural sectors, and small-scale businesses continue,” Edun added.
What you should know
For over four decades, Nigeria’s exportation has been heavily driven by crude oil production, contributing about 85 to 90% of the country’s total exports.
Although the government has launched numerous initiatives to boost non-oil exports, the results have been disappointing. The fact that Nigeria primarily exports raw materials while importing finished goods has made the economy highly import-dependent.
This dependency places significant strain on the country’s foreign exchange earnings, causing the local currency to lose value periodically.
However, in the first quarter of 2024, the country recorded an impressive trade surplus of N6.2 trillion, indicating a rise in exports.
