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Business News of Tuesday, 29 August 2023


Finance Minister admits Tinubu inherited bad economy, says FG can’t borrow

Wale Edun Wale Edun

President Bola Tinubu’s administration has revealed that it inherited a bad economy with an unacceptably high rate of unemployment and skyrocketing inflation.

The Federal Government, however, assured Nigerians that it would not rely on borrowing to raise funds to fix the country while pledging to be transparent, honest, and accountable to the people.

This was made known by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, while briefing State House correspondents at the end of the inaugural Federal Executive Council (FEC) meeting, presided over by Tinubu at the Council Chamber, Presidential Villa, Abuja, on Monday, August 28, 2023.

Edun said the Tinubu administration met a very bad economy with inflation at 24% and a continuously falling per capita.

What the finance minister is saying

When asked to describe the kind of economy the government met on the ground, Edun said,

“Per capita had fallen steadily, inflation is at 24%, unemployment is high, you know they are rebasing how it’s calculated.

“Either way, it is high and youth unemployment is even unacceptably high, these are the key metrics that we have met.”

Asked to be specific on the state of the economy they met on the ground, the minister said,

“We met a bad economy, but Mr. President promises to make it better. “
FG cannot borrow.

Edun also said that the Federal Government was not in a position to borrow money at this time, adding the emphasis is on how to create a macroeconomic environment where both local and foreign investors would invest and increase production.

The Minister of Trade and Investment, Dr. Doris Anite, said the President had to create 50 million jobs.

Meanwhile, President Tinubu has given the cabinet members a marching order to marshal the revival of the economy and make life more bearable for the people.

The marching order was given at the council meeting where the “Roadmap for the economy”, presented by the minister of finance and coordinating minister for the economy, was considered.

Edun said the council agreed that the economy was not where it should be, adding that FEC examined eight priority areas and identified targets to deliver in the next three years.

He affirmed that President Tinubu had charged the ministers to roll out policies and programs to turn around the economy.

What you should know
Recall that about 2 weeks ago, the former Governor of Edo State, Senator Adams Oshiomhole, had hinted that the Tinubu administration inherited a terrible economic situation.

He said some of the decisions taken by the current administration are the first step towards revamping the economy.

Some of the urgent tasks awaiting the current administration include reducing Nigeria’s debt burden, fixing unemployment, and boosting economic growth.