In a joint press conference following the 2025 IMF and World Bank spring meetings, Finance Minister Wale Edun and CBN Governor Olayemi Cardoso presented what appears to be good news about Nigeria’s economic direction. But beyond the technical jargon and optimistic rhetoric lies a more nuanced reality that deserves closer examination.
What’s Actually Happening?
The government is promoting three significant shifts in economic policy:
- Moving away from external borrowing – Both “concessional” loans (low-interest loans from institutions like the World Bank) and commercial loans (like Eurobonds) are being de-emphasized.
- Increasing domestic revenue generation – The government is betting heavily on new tax bills to increase tax revenue as a percentage of GDP.
- Privatizing government assets – There’s a clear push to “crowd in the private sector” across infrastructure and revenue-earning areas.
The Uncomfortable Questions
While these strategies sound promising in theory, several critical concerns emerge:
The Tax Burden Question
Minister Edun’s enthusiasm about “increasing tax as a percentage of GDP” raises an important question: Who will bear this increased tax burden? In a country where millions are already struggling with inflation and economic hardship, will these new taxes target wealthy individuals and corporations, or will they disproportionately affect ordinary citizens?
The Privatization Concern
The minister’s statement that “all revenue-earning areas of the government are open to the private sector” should give us pause. History shows that poorly executed privatization can lead to higher costs for essential services, job losses, and the concentration of public assets in the hands of a few well-connected individuals.
The Missing Social Contract
Notably absent from both officials’ statements was any mention of how these economic shifts will directly benefit ordinary Nigerians. While Cardoso mentioned “protecting household purchasing power,” there were no concrete commitments to social programs, wage increases, or direct investment in public services that would offset the potential hardships of economic transition.
Reading Between the Lines
When Cardoso celebrates that “the wide gap between the official and parallel market rates has disappeared,” he’s right but this achievement came at the cost of a massive devaluation that has dramatically increased the cost of imports and living expenses for average Nigerians.
Similarly, when Edun speaks of “blocking and filling any gaps” from US tariffs by inviting private sector involvement, we should ask whether this will create jobs and opportunities for Nigerians or primarily benefit foreign investors and local elites.
The Path Forward
A truly balanced approach would require:
- Progressive taxation that ensures wealthy individuals and corporations pay their fair share while protecting vulnerable citizens
- Transparent privatization with strong regulatory frameworks to prevent monopolies and protect public interest
- Direct investment in education, healthcare, and infrastructure that creates jobs and improves living standards
- Social safety nets to protect those most vulnerable during economic transition
As citizens, we should demand clarity on these issues rather than accepting technical economic terminology at face value. True economic progress must be measured not just in macroeconomic statistics but in the improved daily lives of ordinary Nigerians.
Reference
Wale Edun: FG moving away from concessional, commercial funding