Investors Flock to Nigeria as Economic Reforms Show Results – FG

The Minister of Budget and Economic Planning, Abubakar Bagudu, has stated that Nigeria’s economy is undergoing a turnaround, driven by bold reforms, improved coordination, and a renewed focus on national priorities.

In a statement on Wednesday, Bagudu highlighted that the government’s “Renewed Hope Agenda” is effectively restoring investor confidence both locally and internationally.

“This is two years well spent,” Bagudu stated, emphasising the government’s commitment to ongoing economic reforms. “Mr President confronted Nigeria’s economic realities with bold and necessary choices, tough as they might be, and those measures are now yielding results.”

According to the minister, the reform-driven economy has seen four consecutive quarters of GDP growth, stability in the exchange rate, and a resurgence in private sector confidence.

Bagudu further mentioned that foreign and domestic investors have responded positively to the government’s economic agenda, particularly in sectors like agriculture, energy, and infrastructure.

“We have seen investors from Brazil, Belarus, and Saudi Arabia increasingly entering our agricultural space. The world economic community and multilateral institutions are putting more faith in our economy,” he added.

He attributed this renewed interest to the administration’s focus on credibility, transparency, and structural change, stressing that investors are keen on policies that ensure good returns,” Bagudu noted.

In the oil sector, Bagudu emphasised that Nigeria is refining oil for the first time in 25 years. “Mr President was courageous enough to allow crude sale in naira to our refiners. This is a testament to his belief in our economy,” he said.

He described the removal of fuel subsidies and the unification of the foreign exchange market as transformative decisions that have restored fiscal sanity. “We were losing five per cent of our GDP on fuel subsidy money going to just a few. Mr President took the courageous step to end it,” Bagudu stated.

The foreign exchange reforms, according to the minister, have removed uncertainty and favouritism, establishing a fair market system that has generated revenue growth and boosted private sector confidence.

He also highlighted that the 2024 and 2025 budgets balance fiscal responsibility and strategic investment in key sectors like health, education, infrastructure, security, and technology. “The 2024 budget achieved significant deficit reduction, and more importantly, it showed that we are serious and the markets believed us,” Bagudu said.

On managing Nigeria’s inherited debt, Bagudu noted that President Tinubu has been committed to respecting the Central Bank of Nigeria’s independence, even in managing the N22.7tn Ways and Means financing. “That discipline is earning us credibility globally,” he added.

The minister credited the Presidential Economic Coordination Council and the Economic Management Team led by President Tinubu and Coordinating Minister for the Economy, Wale Edun, for ensuring coherent and results-driven governance.

“This is teamwork. The President is the chief coordinator. He understands the global economic context, and the private sector respects him. We’re not just doing government-to-government coordination—the private sector is part of this reform effort,” Bagudu concluded.

While acknowledging that the reforms may feel challenging in the short term, he likened the process to a necessary fitness regimen. “Our economy is like a body going to the gym. It might feel painful now, but the muscles of progress are forming,” Bagudu said.

In his final comments, the minister emphasised that President Tinubu’s reforms are not just about economic recovery but a moral responsibility to secure a prosperous future for Nigeria’s future generations. “Mr President is saying: ‘I’m ready to take the pain so our children and grandchildren will inherit a more prosperous Nigeria,’” Bagudu added.

Economic Confidential earlier reported that Bagudu said Tinubu had steered the economy in the right direction and was determined to stay the course.