Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has pledged to strengthen the nation’s fiscal resilience against looming external shocks.
This follows the conclusion of the 2025 Spring Meetings of the International Monetary Fund and the World Bank in Washington on Friday.
Speaking at a joint press conference with the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, Edun emphasized the need to fortify Nigeria’s economy by building fiscal buffers.
The Minister led the country’s delegation to the high-level meetings.
Highlighting recent developments, Edun noted that although global tariff hikes do not have a direct effect on Nigeria, the resultant pressure on oil prices carries significant implications for the economy.
He stated, “We’ve had a very interesting and busy week at the World Bank/IMF Spring Meetings.
“We met at a time of global uncertainty, structural shifts, rising trade and geopolitical tensions, elevated interest rates, and high debt levels, particularly among developing countries. These challenges have impacted economies heavily, especially in sub-Saharan Africa.
“This week, ministers of finance and governors of central banks globally reviewed the global policy agenda set by the IMF last October, along with updates on the World Bank Group’s evolution process.”
Edun further elaborated that while Nigeria may not feel the immediate pinch from global tariff adjustments, the knock-on effects of declining oil prices directly influence the country’s fiscal projections.
“The recent tariff hikes are affecting real wages globally. In Nigeria’s case, while there is no strong direct transmission of the negative effects, the resultant fall in oil prices impacts our fiscal estimates,” he said.
He stressed the importance of robust domestic policy as a primary shield against global turbulence: “The consensus from various fora is that domestic policy must be the first line of defense. We must safeguard fiscal sustainability, build savings, and strengthen our capacity to absorb external shocks. This requires consistent, recalibrated policies, underpinned by transparent and reliable data.”
The Minister also pointed out that President Bola Tinubu’s “Renewed Hope Agenda” is aligned with global priorities, particularly the World Bank’s focus on job creation as a path to prosperity.
“In a nutshell, we have had encouraging conversations. Both at the IMF and World Bank, it was acknowledged that Nigeria is on the right path in terms of monetary and fiscal policies,” he noted. “This is corroborated by Fitch Ratings’ recent upgrade of Nigeria’s credit rating from B- to B, with a positive outlook.
“Despite global uncertainties, Nigeria remains poised for economic growth and job creation.”
Addressing Budget Concerns Amid Oil Price Volatility
Responding to questions on how Nigeria’s budget would fare amid lower oil revenues, Edun explained the government’s flexible approach to fiscal planning.
“Budgets are statements of intent and must be recalibrated to reflect current realities and available resources. That is exactly what is being done,” he said.
He revealed that a sub-committee within the Economic Management Team, comprising key ministries and agencies, had been set up to model different economic scenarios. Their findings will be presented to the broader team and the Federal Executive Council for final decision-making.
While acknowledging the significance of oil revenues, he underscored the administration’s plan to bolster production and enhance operational efficiency under the new leadership at the Nigerian National Petroleum Company (NNPC).
“It’s important to note that while oil is a primary source of foreign exchange and revenue, the focus is also on increasing production to compensate for lower prices. The new leadership at NNPC has been tasked with improving production and operational efficiency.
“Additionally, we have launched a robust revenue assurance initiative to automate and digitize revenue-earning agencies, ensuring that payments are fully captured by the government,” Edun said.
Focus Shifts to Domestic Revenue and Private Sector Investment
Signaling a change in Nigeria’s economic strategy, Edun announced a shift away from heavy external borrowing toward boosting internal revenue and attracting private sector funding.
He explained, “Initially, there was a focus on concessional funding from international institutions and bilateral partners. We also accessed commercial funding through Eurobonds and diaspora bonds. However, that phase has run its course.
“The focus now is on mobilizing domestic revenue and crowding in private sector investments.”
According to him, the Tinubu administration is prioritizing the stabilization of the economy and creating an environment where private investments can thrive in areas like infrastructure, the digital economy, and toll roads.
“The 2025 budget even includes a line for privatization, reflecting the government’s commitment to open the economy to private participation, thus addressing any revenue shortfalls that may arise,” he concluded.
