During an interview on AIT’s Moneyline programme, which was posted on YouTube on Wednesday, Edun explained that this situation prompted President Bola Tinubu to remove the fuel subsidy, as the exact amount of fuel consumed internally in Nigeria is unknown, The Punch reports.

“The fuel subsidy was removed on May 29, 2023, by Mr. President. At that time, the poorest 40 percent of the population was only getting four percent of the value, and basically, they were not benefiting at all. So, it was going to just a few,” Edun stated.

He further elaborated, “Another important point is that nobody knows the consumption of petroleum in Nigeria. We know we spend $600 million to import fuel every month, but all the neighboring countries are benefiting. We are buying fuel not just for Nigeria but for countries to the east, north, and west, almost as far as Central Africa. We have to ask ourselves as Nigerians how long we want to do that.”

Edun emphasized the necessity of taking decisive steps to tackle this issue, as it impedes economic growth. He stressed that the welfare of the people, particularly the vulnerable, is of great importance to the government, with a key focus on ensuring food availability and affordability.

In the interview, Edun also clarified that the N570 billion fund released to state governments was implemented last December. “This refers to a reimbursement received from December last year onwards under the COVID financing protocol. The states have received more money, and Mr. President has charged them to ensure food production in the states,” he explained.

Addressing the recent decision to raise the maximum borrowing percentage in the Ways and Means from five to ten percent, Edun clarified that this does not imply reliance on Central Bank of Nigeria financing. Instead, the government has used market instruments to manage its debts.

“We have not gone to the central bank to say, please lend the government money to pay its debt or salaries. That’s Ways and Means. We have used market instruments to pay down what we owed, and that is essential for having a strong economy,” Edun said.

The approval by the National Assembly is seen as a fail-safe measure, providing extra flexibility to manage payment gaps.

Edun assured that this measure would not undermine local farmers, as importation would only be permitted after exhausting local supplies.

“There is a concerted effort to ensure homegrown food is available. Apart from what is being distributed from reserves, there is a window opened for importation to drive down prices and make food available now,” he stated. Importation will be conditional on exhausting local supplies, with auditors checking compliance.

These interventions aim to reduce inflation, stabilize exchange rates, and lower interest rates, creating a conducive environment for investment and job creation.

This was as the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that the country was expecting about $10bn inflows in the nearest term, which would help to clear foreign exchange backlog and stabilise the naira.

Speaking at the 29th Nigerian Economic Summit in Abuja on Monday, Tinubu acknowledged the challenges faced by the business community in the financial markets and assured them of additional foreign exchange liquidity to restore market confidence.

He also emphasized his administration’s commitment to strengthening governance by establishing a performance and result-oriented public and civil service culture and structure.

The President outlined the eight priority items of his administration to include ending poverty, achieving food security, economic growth and job creation, access to capital, inclusivity, security, fairness and rule of law, and anti-corruption.

He mentioned several measures introduced by his government to resuscitate the economy, such as the N5bn intervention to support small businesses and the agriculture sector, and also announced upcoming initiatives, including a new student loan programme and consumer credit schemes.

Tinubu called on the private sector to support his vision for a greater Nigeria and urged them to bring their ideas, leadership, capital, and collective will to build a future of renewed hope.

He emphasized the importance of a collaborative relationship between the government and the private sector, citing the success of public-private partnerships in transforming Lagos State.

The President expressed his readiness to deliver on his promises to Nigerians and called on the private sector to join him in this endeavour.

On clearing the FX backlog which has drained investor confidence, the president said, “All foreign exchange future contracts will be honoured by this government.”

“I assure you we have a line of sight to the foreign exchange we need to refloat this economy. And we will get it,” He added.

In his remarks, the chairman of the National Economic Summit Group, Mr Niyi Yusuf said that with more than 133 million multidimensionally poor Nigerians, there are potentially more risks of stagnation and distress if a low-growth and low-investment era persists.

He also said that the low access to and increasing cost of foreign exchange, high cost of inventory, imported inputs, and operations, coupled with the diversity of taxes, continue to erode business balance sheets, with resultant contraction in production and employment.

He noted that the country stands at a critical point in its history, and the people’s challenges demand immediate, concerted efforts while noting the need for the parties involved to act immediately with a shared sense of urgency.

Yusuf explained that the nation needs a macroeconomic stabilisation programme supported by an aggressively scaled national security effort to halt all forms of syndicated and organised crime around crude oil and solid minerals and also a made-in-Nigeria agenda.

There is also a need for urgent investment and a national job creation plan that drives the creation of a huge volume of high-quality jobs, among other reforms.

He said, “This year’s summit has been calibrated as a burning platform to answer the question of the essential pillars of economic transformation that would get us to the future envisaged by the government.

“The need for urgent strategic shifts that impact the ease and cost of doing business within a relatively short period is a matter of existential threat to the survival of enterprises and entrepreneurs.

“The low access to and increasing cost of FX, high cost of inventory, imported inputs, and operations, coupled with the diversity of taxes, continue to erode business balance sheets, with resultant contraction in production and employment, which the conference will have discourse on to address.”

Yusuf added that large firms are battling low-capacity utilisation, while medium, small, and micro-enterprises grapple with multidimensional complexities. These poor economic outcomes have created worsening social conditions that cannot be taken for granted, he added.