KEY POINTS
- The Federal Government says it expects economic reforms to deliver greater benefits to households as macroeconomic conditions improve.
- Presidential aide Tope Fasua says Nigeria is targeting six per cent economic growth, with seven per cent possible in subsequent years.
- Nigeria’s inflation rate declined to 14.63 per cent in September, while investment engagements in Thailand showcased 65 transactions and more than $6 billion in private capital commitments, according to the supplied report.
- The government says it is developing social protection measures for vulnerable citizens while maintaining its reform programme.
MAIN STORY
The Federal Government says Nigerians should begin to experience greater benefits from its economic reforms as it seeks to consolidate improvements in inflation, foreign reserves, economic growth and investment.
Dr Tope Fasua, Special Adviser to the President on Economic Affairs in the Office of the Vice President, made this known in an interview with the News Agency of Nigeria (NAN) on the sidelines of the IMF and World Bank Annual Meetings in Thailand.
According to NAN, Nigeria’s investment engagements in Thailand showcased 65 transactions and secured more than $6 billion in private capital commitments.
Fasua said the government intended to sustain its economic reforms while introducing social protection measures to reduce the impact of economic hardship on vulnerable Nigerians.
He cited the decline in inflation to 14.63 per cent in September as one of the indicators suggesting that the economy was moving in a more favourable direction. He expressed optimism that inflation could continue falling, subject to unforeseen developments.
“I am optimistic that the downward trend will continue towards the 10 per cent range in the coming months, barring unforeseen circumstances.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
Fasua also identified easing interest rates, improved foreign reserves and economic growth as signs of progress. He said these developments had improved Nigeria’s reception among international investors.
“What we have seen here is a very good reception towards Nigeria because they see that the macro-economy is doing extremely well.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
The presidential aide cited developments in the capital market, which he said had attracted investments estimated at ₦133 trillion, equivalent to about $100 billion.
However, he acknowledged that improved macroeconomic indicators had yet to provide corresponding relief for many households facing high living costs.
“The micro-economy can only stand on the macro-economy. If you do not fix the macro, you can not do anything with the micro.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
He compared economic reforms to laying a foundation for a building, arguing that a stable macroeconomic environment was necessary for lasting improvements in household welfare.
Fasua said President Bola Tinubu had indicated that the period of economic sacrifice was approaching its end, with the government shifting attention towards consolidating reform gains. He nevertheless acknowledged that high fuel prices continued to put pressure on households and businesses.
He identified real estate, oil and gas, entertainment and electronic commerce as sectors recording encouraging developments. He also argued that the government should resist calls to reverse the reforms, maintaining that abandoning them at this stage would be counterproductive.
On social protection, Fasua said the government was developing a package targeting vulnerable groups, including older people, children and persons whose conditions limited their ability to support themselves.
He favoured measures that could help beneficiaries improve their livelihoods but acknowledged that direct financial assistance remained necessary for people requiring immediate support.
“We are not very much a big fan of just collecting money and giving people money. It is better to teach people how to fish than to just give them fish.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
Fasua said the government was working on documentation to identify eligible beneficiaries and provide assistance directly to them.
He also stressed the importance of domestic investment alongside foreign capital, saying both were necessary to expand economic activity and improve living standards.
The government is targeting economic growth of six per cent from the current rate of 4.43 per cent, with the possibility of reaching seven per cent in subsequent years, Fasua said.
Addressing concerns about when citizens would feel the impact of the reforms, he said the government recognised its responsibility to deliver on its commitments. He added that the approaching election year provided an additional incentive to focus on public welfare.
“We can continue to assure them, but I am personally working on looking at different aspects of the economy to be able to price out what exactly is going on and reduce the level of frustration.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
Fasua also urged the media to communicate economic developments accurately, arguing that public awareness and reliable information were important to national development.
“Building a prosperous country requires sustained effort, cooperation and patience. Meaningful development can not be achieved within two, three or four years.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
He expressed confidence that Nigeria could achieve its development objectives if the government sustained its reforms and citizens continued supporting efforts to strengthen the economy.
THE ISSUES
The government’s message highlights a central challenge in Nigeria’s economic reforms: improving macroeconomic indicators while ensuring that households experience tangible improvements in their daily lives.
A fall in inflation means prices are rising more slowly, not necessarily that the cost of food, transport, energy and other essentials has returned to earlier levels. For households, the more immediate concerns remain purchasing power, income stability and the affordability of basic goods and services.
The government’s growth target also depends on whether investment translates into increased production, business expansion and employment. The reported capital commitments from investment engagements are encouraging, but commitments and transactions do not automatically represent funds already disbursed or projects already operating.
Social protection will be another important test. Identifying eligible beneficiaries and delivering assistance transparently could help direct limited public resources towards those facing the greatest hardship. The effectiveness of the programme will depend on its funding, coverage, implementation and ability to reach intended recipients.
Finally, sustaining reforms will require the government to demonstrate that economic stabilisation can lead to wider prosperity. Growth, lower inflation and investment are important indicators, but their public value will ultimately be judged by changes in living standards and access to economic opportunities.
WHAT’S BEING SAID
“I am optimistic that the downward trend will continue towards the 10 per cent range in the coming months, barring unforeseen circumstances.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
“The micro-economy can only stand on the macro-economy. If you do not fix the macro, you can not do anything with the micro.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
“We are not very much a big fan of just collecting money and giving people money. It is better to teach people how to fish than to just give them fish.” – Dr Tope Fasua, Special Adviser to the President on Economic Affairs
WHAT’S NEXT
The government’s next challenge is to show measurable progress in translating economic stability into improved household welfare. Key indicators to watch include inflation, employment, private investment disbursements, lending conditions and the implementation of social protection programmes.
The planned move towards six per cent economic growth, with a longer-term ambition of seven per cent, will also depend on sustained investment, stronger productive activity and the ability of businesses to operate under more predictable economic conditions.
BOTTOM LINE
The Federal Government says the benefits of its economic reforms should become more visible as inflation eases and investment improves. However, the decisive test will be whether these gains translate into more affordable living costs, decent jobs and effective support for vulnerable Nigerians.
