The federal government has stated that it is no longer in a position to borrow more money and will instead seek to create a stable macroeconomic environment.
This was disclosed by Wale Edun, minister of finance and coordinating minister for the economy, at the conclusion of the first Federal Executive Council (FEC) meeting presided over by President Bola Tinubu on Monday at the presidential villa in Abuja.
He said the goal of the ongoing reforms is to focus on equity and to attract investment.
Edun explained: “Clearly, the federal government is not in a position to borrow at this time. Rather, the emphasis has to be on creating a stable, macroeconomic environment.
“Stable inflation, stable exchange rate. An environment within which people can come and invest and thereby increase production and further grow the economy. Improve and create jobs and reduce poverty.
“So, the aim of all reforms at this time is to focus on what we call equity to focus on investment to attract investment investment by Nigerians. Investment by foreign direct investors and even investment by portfolio investors that want to invest in the financial aspects of the Nigerian economy, such as the stock market, such as the bond market.
“And so that is the plan. That is the expectation and it is that there will not be a reliance on borrowing. Rather, as revenues increase, as the benefit of removing fuel subsidy and the subsidy on the exchange rate, mean more money for government at all levels.
“Because, of course, through oil revenue, the federation earns dollars and if those dollars are feeding through, at let’s say, 700/750 or so naira to one dollar as opposed to 460 where it was before; clearly, that is repairing the finances of government are federal state and local government levels. So, that’s the plan.”
The coordinating minister for the economy, had presented the “Roadmap for the economy,” which was considered by the council.
He added that the council agreed that the economy is not where it should be.
Edun said FEC examined eight priority areas and identified targets to deliver in the next three years.
President Tinubu has ordered the ministries to implement economic recovery policies, he said.
He said: “First, he thanked everyone and stressed Nigerians’ high expectations. He challenged us to be brave, fearless, and imaginative and move quickly to improve Nigerians’ lives.
We assessed the economy, growth, exchange rate, inflation, unemployment, and so forth.
We also examined the President’s eight-point agenda, which is the eight priority areas for moving the Nigerian economy forward and delivering to Nigerians: food security, ending poverty, economic growth and job creation, access to capital, particularly consumer credit, inclusivity in all its dimensions, especially for youths and women, improving security, and improving the economy.
“The plans and targets of what will be delivered in the next three years or so were identified, discussed, and inputs were given by various ministers, and we will now go away with the marching order to refine further the targets and within weeks to start rolling out policies and programs to turn around the economy and make things better for all Nigerians.
“That really was the discussion’s core.”
