Edun: Nigeria’s Economy Undergoing Correction

*Insists rise in debt service not equal to fiscal recklessness 

*Kyari: FG’s policy efforts have crashed food prices by 50%

* Reassures foreign investors on country’s business climate

Ndubuisi Francis, Michael Olugbode and James Emejo in Abuja

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday said recent trends in the nation’s economy did not indicate that the country was experiencing a fiscal collapse, but rather that it was undergoing what he described as a fiscal correction.

According to a media brief obtained from the office of the Minister, the current administration has chosen long-term sustainability over short-term illusion, adding that the distinction must guide public discourse going forward.
The explanation by Edun came the same day the Minister of Agriculture and Food Security, Senator Abubakar Kyari, declared that the federal government’s efforts to contain food inflation have started to pay off, adding that prices of essential food commodities had dropped by 50 per cent nationwide.
Also, the federal government has reassured foreign investors that Nigeria’s business environment remains secure and conducive for their investments.

Continuing, Edun pointed out that the current reforms are structural, transparency-driven, discipline enforcing and growth-enabling.
The document titled, “Deepening Public Understanding of Nigeria’s Fiscal Position,” was designed to correct misunderstanding arising from Edun’s recent appearances before the National Assembly. Such issues centred around debt service trends, public debt growth, revenue performance, and capital expenditure execution.

It alluded to key misconceptions observed in public discourse, noting that the
most widespread bordered on the lack of distinction between Federation Revenue and Federal Government Revenue.
Noting that Federation Revenue is not the same thing as Federal Government Revenue, it explained that nationally collected revenues are paid into the Federation Account and distributed monthly by the Federation Account Allocation Committee (FAAC) among the three tiers government.

The brief noted that while the statutory sharing formula often cited publicly is 52.68 per cent in favour of the federal government, 26.72 per cent for the states, and 20.60 per cent to local governments, this broad principle does not apply uniformly across all revenue types, adding that each revenue source has its
own allocation structure.

This, it stressed, was where the misunderstanding arose from.
Explaining that oil and gas shortfalls hit the government at the centre hardest, the minister said this was because the federal government gets a higher proportional allocation of revenues from oil and gas.
“The federal government receives approximately 53–65 percent of oil and gas revenues (depending on
components). VAT, by contrast, is shared 20 percent to the federal government and 80 percent to States and local governments,” It added, noting that the implication was that if oil revenue underperforms, the federal government suffers a disproportionately larger shortfall while the other tiers of government are relatively less affected.
The document pointed out that the 2024 and 2025 projected oil and Federation Revenue was N37.4 trillion while actual receipts stood at N7 trillion (19 per cent performance).

It argued that had the projection been met, the government at the centre would have received N15 trillion more.
The minister debunked claims that federal capital projects are not being implemented while also providing further clarification on the Nigeria Revenue Service (NRS) and Budget Office targets.
Edun admitted that federal capital projects are being under-executed, but not abandoned, debunking the narrative that such projects were not being implemented.

“There is a narrative that federal capital projects are not being implemented because MDAs’ capital releases appear low. This interpretation is incomplete,” Edun said, explaining that there are two components of federal capital expenditure.
“These are those funded by ministries, departments and agencies (MDA-funded capital), and Multilateral-tied Loans which are disbursed directly by development partners.”
He disclosed that in 2024, total capital expenditure (CAPEX) stood at N11.59 trillion (84 per cent performance) while the 2025 performance was N11.7 trillion or 76 per cent.

On debt, he argued that an increase in debt service does not translate to fiscal recklessness, adding that in 2024 and 2025, debt service overshot projections.
According to him, while budgetary provision for debt service in 2024 was N8.56 trillion, the actual service was N12.63 trillion (an increase of N4 trillion).
Also, in 2025, the budgeted debt service was N13.12 trillion while the actual service gulped N14.57 trillion or N1.45 trillion higher.
These increases, he said, were driven by macroeconomic factors, including naira depreciation and higher domestic interest rates.
He stated that Nigeria’s debt is not growing uncontrollably, noting that it had grown in nominal naira terms.


Kyari: FG’s Policy Efforts Have Crashed Food Prices by 50%
Meanwhile, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, yesterday declared that the federal government’s efforts to contain food inflation have started to pay off, adding that prices of essential food commodities had dropped by 50 per cent nationwide.
This, he said, was in contrast to previous years when food prices skyrocketed way beyond what most Nigerians could afford.
The minister spoke at the 2026 ministerial stakeholders’ engagement retreat on agricultural transformation in Abuja, adding that the government’s efforts had also attracted millions of dollars in investments across various agribusiness ventures, injecting much-needed capital into the sector and stimulating economic growth.

The minister stated that, “This support has not only boosted agricultural productivity but also created jobs, increased incomes, and enhanced the overall competitiveness of Nigeria’s agribusiness sector, paving the way for a more prosperous and sustainable agricultural future.

“These efforts reflect our commitment to improving food security and the overall well-being of citizens. We are working to sustain this trend by addressing high input costs to ensure food remains accessible and affordable.”
This came as stakeholders urged the federal government to boost current funding to the sector more than it spends on security, noting that when jobs are created through agriculture, it will naturally reduce insecurity across the country.
Kyari, however, noted that by prioritising agriculture as a key driver of economic growth, the government’s efforts are yielding results.

He stated that while challenges persist, the federal government continued to work tirelessly to overcome them, stressing however, that achieving these goals required a collective effort, sustained energy, partnership, and alignment of our initiatives and resources.
Kyari said, “We will continue to collaborate with stakeholders, leveraging resources and expertise to drive growth and transformation in Nigeria’s agricultural sector. Together, let us build on our achievements and tackle the challenges ahead.

“Our strategic focus on developing key value chains is positioning Nigeria as a major player in the global agricultural market. We have prioritised and developed the rice, maize, wheat, millet, sorghum, yam, cocoa, kenaf, cowpea, cassava, soybeans, cotton, onion, tomato, and oil palm value chains, thereby creating opportunities for millions of smallholder farmers and other stakeholders.
“By enhancing their productivity, we have helped these farmers to transition from subsistence farming to thriving agribusinesses, contributing to national food security, employment generation, and economic growth.”

The minister further noted that in the last two years, the federal government had boosted agricultural productivity and food security through various initiatives, including the distribution of over 1.9 million bags of fertilisers to nearly one million farmers, promoting sustainable soil management with 12,000 liters of organic fertilizers, and strengthening regulatory frameworks.
“Key achievements from 2024–2025 include constructing approximately 170km of asphalt roads and 57km of earth and surface roads, boosting connectivity and market access.

“Additionally, 296 motorized and solar-powered boreholes have been provided, alongside water treatment plants, to improve access to clean water. The installation of 3,596 solar street lights has enhanced security and mobility, while 69 rural housing and market facilities have been built to support economic activities, reduce poverty, and improve the quality of life for rural communities.”


FG Reassures Foreign Investors on Nigeria’s Business Climate
In the meantime, the federal government has reassured foreign investors that Nigeria’s business environment remains secure and conducive for their investments.
It disclosed this at a high-level investment dialogue attended by top executives, diplomats and regulators held at the Presidential Villa in Abuja.

The meeting, organised by the Presidential Enabling Business Environment Council (PEBEC), brought together existing foreign direct investors operating in Nigeria with senior government officials to address persistent concerns around security, taxation, customs processes and regulatory bottlenecks affecting business operations.
The engagement marked the third Existing Foreign Direct Investors Roundtable, an initiative aimed at maintaining direct communication between government authorities and international investors already active in the Nigerian economy.

Opening the session, Vice President Kashim Shettima, who chairs PEBEC reiterated the federal government’s commitment to building a stable, transparent and competitive business environment capable of attracting and retaining long-term investment.
Vice President Shettima, who was represented by the Deputy Chief of Staff to the President, Ibrahim Hadejia, told investors that the government remains focused on implementing reforms that will strengthen investor confidence and drive sustainable economic growth.

According to him, Nigeria recognises the critical role foreign direct investment plays in expanding industrial capacity, creating jobs and facilitating technology transfer.

Director General of PEBEC, Zahrah Mustapha Audu, said the roundtable was part of a deliberate strategy to ensure that policy reforms translate into measurable improvements for businesses already operating in the country.

She stressed that while attracting new investment remains important, sustaining and expanding the operations of existing investors is equally vital to Nigeria’s economic stability.

“Existing foreign investors are key partners in Nigeria’s development. Their investments contribute significantly to employment, capital inflow, technology transfer and supply chain development,” Audu said.

She noted that PEBEC’s reform agenda places strong emphasis on listening to investors directly and addressing operational challenges affecting their activities.

The dialogue featured detailed engagements with key government officials responsible for major regulatory institutions, including the Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, the Comptroller General of the Nigeria Customs Service, Bashir Adewale Adeniyi, and the Inspector General of Police, Olatunji Rilwan Disu.

Also contributing virtually was the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who outlined ongoing tax and fiscal reforms designed to improve tax certainty, streamline revenue administration and enhance Nigeria’s competitiveness as an investment destination.

The session drew participation from diplomatic missions representing the United States, Russia, France, Colombia, Denmark and Pakistan, alongside development partners such as the United Nations and the World Bank.

During the discussions, investors raised a range of technical concerns touching on security challenges, tax administration procedures, customs clearance delays and policy consistency.

The interactive format allowed investors to question regulators directly while government officials clarified ongoing reforms and outlined plans to address operational bottlenecks.

Participants commended the federal government for providing an open platform for dialogue and urged authorities to sustain regular engagements to strengthen trust between policymakers and the private sector.

Observers say such consultations have become increasingly important as Nigeria seeks to stabilise investor confidence and compete with other African economies for global capital.

The meeting, analysts note, reflects growing recognition within the government that attracting investment requires not only policy reforms but also consistent engagement with businesses already navigating Nigeria’s complex operating environment.

By facilitating direct conversations between investors and regulators, PEBEC hopes to identify systemic challenges early and accelerate reforms capable of improving Nigeria’s standing as a competitive investment destination in Africa.