Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Thursday explained why Nigeria has no reason to approach the global lender, the International Monetary Fund (IMF), for any loans, contrary to insinuations that the country could seek help from the Bretton Woods institution soon.
Besides, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, on Thursday, disclosed that the bank was set to establish a compliance department by February to address past challenges, aligning with global standards, and building a more transparent and resilient financial sector.
These came on a day the global consulting firm, PricewaterhouseCoopers (PwC), projected a 3.3 per cent growth for the Nigerian economy, driven by sustained policy reforms in 2025.
The firm also predicted a relatively stable economy marked by exchange rate stability supported by the CBN reforms in the FX segment which are expected to boost capital inflows.
But speaking with Arise Television on the sidelines of the ongoing World Economic Forum (WEF) in Davos, Switzerland, Edun explained that Nigeria is currently relying on relatively cheaper borrowing sources from the World Bank and the African Development Bank (AfDB).
Besides, he argued that Nigeria does not have a balance of payments problem and therefore will not need the short-term financing intervention by the international bank.
“I can imagine the headlines if you saw a situation whereby you were saying Nigeria approaches the IMF for funding. But the reality is that, of course, as a developing country, requiring investment, requiring funds for the government, for investment in key infrastructure to improve the enabling environment for business, we do need funds, and we have the need to borrow.
“We have relied on relatively cheap funding from the multilaterals, from the World Bank, from AFDB, and the whole spectrum of funding has been used. We have relied on Nigerian savings by convincing them of the macroeconomic plan of the president, and what it holds in terms of the prospects for growth of the economy and business, and improvement of the business environment.
“And, of course, we have approached the Euro bond market, which is, of course, the commercial end of financing. So we’ve done that whole spectrum. When it comes to IMF financing, typically financing from the IMF is to help with short-term balance of payments issues and crises.
“In the case of Nigeria, we have a positive trade balance. We have a positive current account balance. Our reserves are growing. The Governor of the Central Bank recently announced that we had achieved upwards of $10 billion improvement and increase in the reserves.
“ In such a case, funding by the IMF is not the appropriate source. And where we are now is that having utilised multilateral financing, concessional financing as much as possible, now we need to optimise our assets.
“We need to use equity. We need to rely on crowding in the savings, particularly of the private sector in Nigeria and the private sector around the world in the form of foreign direct investment. We have to remember that at this time, we have had significant gains in terms of improving the economic environment,” Edun stated.
However, he admitted that food inflation and the cost of living remain in the high side, explaining that beyond restricting demand to cut inflation, the supply side also needs to be boosted.
“However, we also admit and we confront fully the fact that inflation is relatively high. Cost of living is high. Cost of food is high. And that is the the focus of Mr. President’s determination in terms of what to tackle next. It is the high rate of inflation, of course, led by the Central Bank, which controls the monetary tools, interest rates in particular. But also, inflation is not just for the monetary side.
“Inflation is a fight for all of us. And on the fiscal side, there is much to be done in increasing the supply. If you want the price of a good to go down, it’s not just a question of restricting demand.
“It’s also a question of increasing supply. And in particular, as has happened during this dry season harvest, which is going on in Nigeria, with concerted efforts to provide the smallholders in particular with the various inputs, herbicides, fertiliser, seeds, we are having a good harvest, but more needs to be done there.
“And there’s a commitment to increasing food production, so achieving lower price of food, more availability and affordability of food for Nigerians, that is a major commitment, alongside growing the economy as a whole,” Edun pointed out.
The minister argued that Nigeria was gradually turning the corner, stressing that the economy of last year is different from the one this year, because the needed reforms have been largely implemented and we’re beginning to yield results.
“The economy is growing again. The foreign reserves are building up. The debt servicing as a percentage of revenue is down, and likewise, also the deficit, debt as a percentage of Gross Domestic Product (GDP) is going down. So we’re in a much better place in terms of the investment environment,” the minister added.
According to him, the delegation from Nigeria led by the Vice President to Davos, has had conversations with business concerns which will result in billions of dollars of investments in Nigeria, especially those from people in the financial payments sector, fast-moving consumer goods sector, and major international companies.
“And already they’ve indicated that under the improved foreign exchange regime, under the improved investment climate, they are ready and willing to make these investments now.
“And we have a number of other bilateral meetings lined up to talk to investors who we hope are going to be making their decisions to invest in the Nigerian economy, create jobs, grow the economy, and help reduce poverty in our country,” the minister observed.
Besides, he stated that at the moment, there is a lot of admiration and commendation for President Bola Tinubu for having led the Nigerian economy and society out of what he described as devastating, wasteful and very costly expenditure on various subsidies.
Having achieved that, he assured that Tinubu was determined to continue on the path of improvement of the Nigerian economy, stressing that investors were set to start pouring into Nigeria.
“In the oil and gas sector, once again, Nigeria is attracting the most investment within the context of Africa. It had fallen behind before. It is now back to the fore. And I think the same thing is happening in other areas of the Nigerian economy. All 19 major sub-sectors are growing. They are improving.
“And it is critical to emphasise that investors are lined up and ready to come in, not just foreign direct investors, but even Nigerian investors. And so I think the outlook is for a continued improved environment for investment that will increase the productivity and competitiveness of the Nigerian economy. It will grow the economy, create jobs and reduce poverty.
“And talking of reducing poverty, there is equal determination to maintain the social safety net and improve upon the delivery of help, particularly to the poor and the most vulnerable in the form of direct benefit transfers and other interventions that help to ease the cost of living. So the future is bright. The outlook is very positive,” he averred.
On the recent approval of a 50 per cent hike in telecom tariffs, he noted that it willhelp the telcos operate efficiently and that it will continue to undergo review.
“Well, I agree with you that there is a need to reflect the fact that over a 12-year period there has been a rise in costs, there has been inflation and that needs to be reflected of course in the business competition for the telcos, which of course they have regulated to an extent, their pricing is regulated. They’re not just free to give any tariff that they want.
“So the cost of living increase that has occurred has to be reflected. But I think 50 per cent is a start and it’s all about compromise and it’s all about the timing and sequencing of some of these changes necessary as they are. And in this particular case, we want the telcos, who are a very critical aspect of the Nigerian economy, of the infrastructure offering that is part of the business environment in Nigeria, we want them operating efficiently.
“We want them terminating calls efficiently. We don’t want dropped calls. We want good quality services from them. And at the same time, we want them growing, employing people and basically adding to the GDP of the country.
“And that’s why this 50 per cent increase has come through. And I believe that it’s a situation that will be looked at on a forward-looking basis as we go forward. There will continue to be review, consultation and discussion in this area,” he added.
The Governor of the Central Bank of Nigeria (CBN),Cardoso, disclosed that the bank was set to establish a compliance department by February. He said the move aimed at addressing past challenges, aligning with global standards, and building a more transparent and resilient financial sector that could drive the country’s growth and development.
Cardoso spoke at the launch of the Nigerian Economic Summit Group’s (NESG) 2025 Macroeconomic Outlook Report in Lagos.
He said the department will be both inward and outward-facing, adding that it would be functional by the end of February.
He said the department would enhance market oversight by monitoring participants to ensure adherence to best practices, with penalties for those who fail to conform.
This initiative is expected to bolster investor confidence and create a more credible and efficient financial ecosystem.
The CBN also projects a 4.17 per cent GDP growth for the country in 2025, building on the 3.36 per cent growth expected for 2024.
Cardoso said the positive growth trajectory will be driven by the sustained implementation of government reforms, stable crude oil prices, increased domestic oil production, and enhanced refining capacities.
Also, has projected a 3.3 per cent growth for the Nigerian economy, driven by sustained policy reforms in 2025, predicting a relatively stable economy marked by exchange rate stability supported by the apex bank’s reforms in the FX segment which are expected to boost capital inflows.
The tax, and advisory services firm further predicated inflation to decline to 26 per cent, occasioned by tighter monetary policies and improvements in the country’s FX market dynamics.
The firm gave its predictions during an executive roundtable on Nigeria’s 2025 Budget and Economic Outlook, which it hosted in partnership with BusinessDay.
However, Cardoso said: “GDP growth is projected to rise to 4.17 per cent in 2025 from 3.36 per cent in 2024. This growth is anchored on stable crude oil prices, increased refining capacity driven by the Dangote refinery, and the revitalization of the Port Harcourt and Warri refineries. A stable exchange rate will also play a crucial role in maintaining this positive trajectory.”
He further disclosed that Nigeria’s foreign exchange reserves exceeded $40 billion by the end of 2024, supported by $6 billion in foreign capital inflows and increased oil production. The country’s oil output is projected to reach 2.3 million barrels per day by mid-2025, further driving economic growth.
Highlighting the impact of the CBN’s foreign exchange policies, he noted that initiatives such as the Foreign Exchange (FX) Code and the Electronic Foreign Exchange Matching System (EFEMS) have boosted market efficiency and transparency.
The CBN governor said, “The introduction of the foreign exchange matching system and the foreign currency disclosure repatriation and investment scheme will enhance market efficiency and transparency, reduce the disparity between the Bureau de Change (BDC) and official exchange rates, and foster stability in the market. So far, we can see the result of a lot of those efforts on our market,” he explained.
Also, to strengthen diaspora remittances, the CBN granted approval in principle to new International Money Transfer Operators (IMTOs) and launched the non-resident BVN initiative. This move aims to provide Nigerians living abroad with access to banking services in their home country, fostering deeper engagement with the financial system.
He said, “The introduction of the foreign exchange matching system and the foreign currency disclosure repatriation and investment scheme will enhance market efficiency and transparency. And reduce the disparity between the BDC and official exchange rates and foster stability in the market. So far, we can see the result of a lot of those efforts on our market.
“We are definitely going to strengthen our mechanisms to constantly be on the watchout for market participants and to ensure that all those who are in that market are subjected to the best practices and those who fail to conform would be appropriately dealt with.
“To boost diaspora remittances through formal channels the bank granted approval in principle to new IMTOs and also launched the nonresident BVN recently to enable Nigerians overseas to have access to banking services in the place of their birth.”
He said, “This is a clear example of recent initiatives and products that we have launched in response to the dialogue we have had with many people overseas understanding their problems and opportunities they are looking for in Nigeria and able to make life much easier for them.
“I am very confident that we are going to see a very positive outcome. We are already seeing and the impact is already starting to show. The IMTOs and the foreign remittances are remarkable.”
“Our efforts have resulted in a significant milestone in 2024 with over $6 billion in foreign capital inflow into Nigeria external reserves exceeding $40 billion signaling growing investor confidence. Again we emphasize reserves going up not just in numbers but in quality.”
Continuing, he said, “As we progress through 2025, we aim to ensure that the reforms and market-oriented policies will support a more competitive business environment. These developments carry significant implications for businesses operating in Nigeria requiring them to adapt to an evolving economic landscape.
“There is a lot to be said with the fact that we have found ourselves in a situation where the foreign exchange rate has adjusted, that has its negatives for especially for those that are so import dependent but it also has offered opportunities and that opportunity, I see a lot of foreign investors coming in to take advantage of it.
“At this stage our currency is a lot more competitive and the implications for exports and productive activity are significant in adapting to new economic realities.”
Meanwhile, Chief Economist and Director of Research and Development, NESG, Dr. Olusegun Omisakin, stated that Nigeria’s economy has the potential to achieve a 5.5 per cent GDP growth rate with sustained policy reforms. He emphasized that targeted measures could unlock the country’s economic potential.
International Monetary Fund’s (IMF) Resident Representative for Nigeria, Christian Ebeke, commended the CBN for not providing Ways and Means advances to the Federal Government in 2024, describing it as a welcome development. He urged policymakers to cushion the impact of economic reforms on vulnerable groups.
PwC however, expressed concerns that the country’s growth prospects may be hammered by persistent economic headwinds, noting that the CBN was likely to maintain its monetary tightening stance during the year, leading to elevated interest rates to achieve long-term price stability.
Partner and Lead for PwC Strategy and Practice in West Africa, Mr. OlusegunZaccheaus, said this could have implications for businesses, regarding higher financing costs.
PwC particularly raised concerns that fiscal sustainability may remain slightly elevated due to high debt servicing costs and significant fiscal deficits.
Zaccheaus further identified opportunities for businesses to capitalise on export markets in Africa and globally, enhance targeted value chains, and adapt to industry consolidation.
He said current efforts by the National Bureau of Statistics (NBS) to rebased the country’s GDP may expand the economy, reducing the debt-to-GDP and tax-to-GDP ratios.
Nonetheless, he said underlying fiscal challenges, such as revenue deficits and rising debt servicing costs, could persist, further undermining growth potential.
According to PwC, an updated consumption basket would provide a more accurate measure of changes in the cost of living, enabling monetary authorities to set appropriate interest rates and implement targeted interventions.
Zaccheaus also stated that while moderate revenue growth was anticipated, high energy costs and infrastructural challenges may drive up production and operational expenses.
Moreover, he said FX reforms are projected to promote exports and improve Nigeria’s global competitiveness.
He added that increased crude oil refining capacity would reduce fuel imports, while demographic shifts and population growth could open opportunities in digital innovation, youth-oriented markets, energy-efficient data centers, broadband expansion, and 5G adoption.
According to him, “The African Continental Free Trade Area (AfCFTA) and other regional initiatives offer opportunities for businesses to explore new markets and boost exports.
“There is growing interest in value addition for processed agricultural products, which businesses can leverage.”
He pointed out that regulatory capital requirements could drive mergers in the banking and insurance sectors, adding that businesses should prepare for such changes.
He said the rising cost of credit may dampen demand for high-value items and affect discretionary spending.
PwC Partner, Kenneth Erikume, also highlighted key factors expected to shape the county’s industrial development in the medium-term, particularly policy reforms in agriculture, taxation, and special agro-industrial processing zones.
Erikume emphasised the importance of supporting compressed natural gas (CNG) adoption, small and medium-sized enterprises (SMEs), and tourism to foster growth. He also stressed the need for ease-of-doing-business initiatives to attract investments and stimulate economic development.
For sector-specific growth, Erikume identified mining and quarrying as key areas, particularly the development and export of gemstones. To combat illegal mining, he recommended investments in surveillance technology.
He also suggested infrastructure improvements, such as constructing roads, hospitals, security institutions, and schools, as well as expanding the national fiber optic network by 90,000 km to enhance connectivity and facilitate trade.