By Desire Emmanuel with Agency Reports
Nigeria’s oil production has risen to 1.8 million barrels a day, Finance Minister, Wale Edun, told Reuters, generating fiscal breathing space that will allow the government to support vulnerable households as it ploughs ahead with reforms.
Speaking in an interview on Wednesday, April 15, on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington, United States, Edun said rising crude oil production was positive for Nigeria’s revenue, for foreign exchange and for the fiscal situation of the OPEC member.
“It gives us that extra fiscal space within which to look at … helping the vulnerable households at this time,” he said.
However, support would be targeted, said Edun, adding: “there is no thought of any return or retardation to broad untargeted subsidies.”
Edun said the country suffered no fuel shortages thanks to the Dangote refinery.
“We have managed to keep the pumps going and adequate supply of petroleum products, particularly petrol and diesel and so forth, and even jet fuel,” he stated.
President Bola Tinubu since 2023 has rolled out Nigeria’s most ambitious economic overhaul in decades by ending costly fuel and energy subsidies, devaluing the currency and changing the tax system which – together with rising oil output – has supported economic growth of around four per cent.
But inflation in Africa’s most populous nation is still high, interest rates elevated and fiscal space tight as the government struggles with heavy debt-service costs, weak non-oil revenues and continued reliance on crude exports.
Data out on Wednesday showed consumer inflation quickened for the first time in a year in March – a headache for Tinubu’s government ahead of elections scheduled for January next year.
Asked about the impact on the economy from the Iran war which is expected to crimp growth around the globe, Edun said the outlook was very uncertain.
“The impact on growth can be … either minimal, but over time it could, if things drag on, it could lead to world recession,” he said.
“Nigeria is in a position where the resilience that has been built in the economy is actually very obvious for all to see,” said Edun.
“We are very much focused on maintaining the reform pathway and very much focused on improving the resilience of the Nigerian economy to withstand external shocks.”
Asked about its relationship with the Fund, Edun said “Nigeria is not looking for any financial support from the IMF.”
