- …says targeted vulnerable Nigerians being reached
- …economy on positive trajectory
Following the progress made in the economy since the emergence of the current administration, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said that the combined fiscal balance of states with regard to Gross Domestic Product (GDP) has grown from N2.8 trillion to N7.1 trillion.
Edun, who disclosed this while briefing journalists yesterday on the state of the economy in Abuja, said the figures represented an increase of 1.8 per cent of GDP to 3.1 per cent.
Describing the fiscal balance increase from N2.8 trillion to N7.1 trillion as a surplus, he said: “This has given them greater capacity to invest, and from an economic classification standpoint, the increase in spending of the states has mainly gone to capital expenditure.”
The minister, who declared that the economy had become resilient and attractive to investors following reforms, which birthed investment-friendly environment since 2023, said recent data on the country’s external sector, fiscal discipline, and subnational funding all pointed to a more resilient economic foundation.
Speaking further on the progress made so far, he said: “When we look at the external sector, in the first quarter of 2025, trade surplus of over $4 billion and exports increased by nearly 10 per cent, 9.8 per cent and, of course, we know that the exchange rate has been relatively stable and reserves up to almost $40 billion, $39 billion in July.
“I think these metrics, which speak to stability, send a clear message.” Reflecting on the policy direction under President Bola Ahmed Tinubu, he said the administration had created a “stable macroeconomic conditions on which people can plan and invest.”
He referenced key changes introduced by the administration- fuel subsidy removal, halting uncontrolled use of Ways and Means advances from the Central Bank and said they were necessary to reset the economy.
He said: “As we all know, under the leadership of President Bola Ahmed Tinubu, steps have been taken to restore fiscal discipline and balance and we have ended the unauthorised and above-limits funding by Ways and Means. “There have been no debits to Ways and Means since early in this administration.
Gross revenues are 37.4 per cent of government revenues in the first half of 2025 compared to 2024 and likewise, following GDP rebasing, we do have a ratio now of debt to GDP of less than 40 per cent, 38.8 per cent down from 52.1 per cent.”
He added that this fiscal space had allowed the government to settle significant outstanding obligations, stressing that “in the last quarter, we did pay two contractors over two trillion to settle outstanding capital budget obligations from last year.”
