Photo: President Bola Tinubu and Finance Minister, Wale Edun

…Says 2024 Nigeria’s Strongest Economic Year in Decades

By Douglas Maha with agency report

The Federal Government of Nigeria has successfully cleared $7 billion in foreign exchange (FX) forwards and other critical financial obligations, marking a significant step in bolstering Nigeria’s economic recovery.

Dr. Tope Fasua, Special Adviser to the President on Economic Affairs in the Office of the Vice President, made this announcement during the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja. Representing Vice President Kashim Shettima, Dr. Fasua also disclosed that the government had fully settled N30 trillion in Ways and Means advances at the Central Bank of Nigeria (CBN). Additionally, all outstanding loans, including a $1.5 billion Eurobond, have been serviced in full.

Dr. Fasua highlighted 2024 as Nigeria’s most economically resilient year in the past decade. “While inflation remains persistent, it is projected to decrease in the coming months, as food prices, foreign exchange rates, and other key economic drivers stabilise,” he said.

He also emphasised the upcoming release of Nigeria’s rebased Gross Domestic Product (GDP), which, last updated in 2014, will soon reflect the country’s recent economic progress. This GDP update is expected to further boost investor confidence in the Nigerian economy.

Dr. Fasua outlined several key achievements for Nigeria in 2024, stating, “Nigeria’s balance of payments surplus reached $6.8 billion, trade surplus stood at $16 billion, and net foreign reserves grew by $20 billion.” He also noted that Nigeria had successfully repaid the principal of a $3.4 billion emergency loan from the International Monetary Fund (IMF), taken during the COVID-19 crisis.

These developments reflect significant strides in Nigeria’s fiscal and economic stabilisation efforts, reinforcing the nation’s commitment to maintaining financial discipline and improving its fiscal position.

In his address, CITN President Samuel Agbeluyi acknowledged Nigeria’s ongoing economic, security, and social challenges, stressing the urgent need for sustainable, long-term solutions. He commended the Tinubu administration’s efforts, particularly the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, for advancing socio-economic development through a more effective tax system.

Agbeluyi remarked, “This legislative initiative is a commendable effort. However, the success of any policy or law hinges largely on the quality of its implementation.”

He also discussed a new Senate bill proposing the introduction of tax agents to act as intermediaries between taxpayers and revenue authorities. This initiative underscores the crucial role of tax professionals in ensuring transparency, accountability, and efficiency in Nigeria’s taxation system.

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