The Minister of Finance, Wale Edun, has reassured Nigerians that the economy is thriving under President Bola Tinubu’s leadership, noting that the country achieved an impressive $55 billion in non-oil exports last year.
Edun shared this information while briefing the press at the State House, Abuja on Tuesday on the outcome of President Tinubu’s meeting with the council of states.
Edun stated that the rise in exports has created a trade surplus, emphasizing that both local and foreign investors are increasingly returning to the economy.
Edun said despite the high inflation rate, investors are creating significant opportunities in the economy, particularly in the infrastructure sectors.
“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, it 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 identify in the meeting that we have non-oil export at $55 billion last year with tremendous room to grow,” Edun said.
Emphasis on Service Sector
In addition, Edun said the government is laying emphasis on the service sector to provide employment opportunities for young Nigerians.
He mentioned that these young demographics who are in the sector can have outsource their skills through the internet and telephones.
According to the Minister, the government will continue to support the economy through various strategic interventions to reduce the high cost of living caused by rising inflation.
“In particular, we identify that the service sector—such as software services, accounting services, computer services—which can be provided by young Nigerians. These Nigerians staying in Nigeria and providing services through the internet and telephone. Outsourcing was a big area we emphasized on.
“In 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, small scale business,” 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.
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