The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, says Nigeria is transitioning from a phase of economic stabilisation to one of growth, following months of reforms that initially triggered volatility across key sectors of the economy.
Speaking in an interview with The African Report, Oyedele said the disruptions that followed the removal of fuel subsidies and foreign exchange reforms were expected outcomes of long-standing structural corrections.
He explained that the economy had previously been distorted by subsidy regimes and FX interventions that were unsustainable in the long term.
“If you think about where we started, about three years ago, it was a situation where there was a lot of economic distortion, particularly coming from fuel subsidy, FX subsidy and a lot of other market distortions. To be able to deal with that, you would necessarily have to get into a situation of volatility,” he said.
According to him, the short-term effects of the reforms included higher fuel prices, increased transportation costs, rising inflation, and general economic pressure on households and businesses.
However, he maintained that these challenges were necessary to lay the foundation for long-term stability and growth.
Oyedele said the economy has now largely moved past the initial shock phase and is beginning to show signs of stabilisation.
He pointed to moderating inflation, a more stable foreign exchange market, and gradual improvement in economic activity as indicators of recovery.
“And then after that was the stability. Now we have had that economic stability,” he said.
“We have seen moderation in inflation, we have seen the foreign exchange rate stabilise and, in fact, steady appreciation over the past couple of years. We have also seen growth, modest growth, but increasing.”
The minister acknowledged, however, that recent global and geopolitical developments continue to present new pressures on the economy.
He said the government is now focusing on policies aimed at unlocking sustainable growth by addressing structural constraints such as inadequate power supply, weak infrastructure, skills gaps, and regulatory inefficiencies.
“To be able to achieve growth, we need to unlock some factors. One of them has to do with power, infrastructure more broadly. You need skills. You need to deal with issues around over-regulation. Your tax system must be investor-friendly and growth-promoting,” he said.
Oyedele expressed optimism that ongoing reforms have already laid a strong foundation for economic expansion and that the next phase will focus on translating macroeconomic stability into real improvements for businesses and citizens.
“We are quite proud of the progress we have made, but this is the point where we are now, where we begin to translate those reforms into results,” he said.
On taxation, the minister said the government is intensifying efforts to expand the tax base and improve compliance, stressing that enforcement must apply equally across all segments of society.
“One of the problems is that Nigeria’s political economy still has some very large tax evaders who are almost too powerful to touch. No one should be above the law,” he said.
He added that recent reforms have targeted multinational companies, free trade zone operators, government agencies, and high-net-worth individuals as part of efforts to strengthen fiscal discipline.
Oyedele said the administration is working to build a tax system that encourages compliance while supporting investment and economic growth.
He concluded that the broader objective of the reforms is to strengthen public finances, improve efficiency, and ensure that macroeconomic stability translates into tangible benefits for households and businesses.
