Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has acknowledged that many citizens are yet to experience the benefits of the Federal Government's economic reforms, despite progress on macroeconomic stability. Speaking at Chatham House in London on Wednesday, Oyedele defended the removal of the petrol subsidy and the unification of the foreign exchange market, while admitting that food prices and living costs remain major challenges for households. He noted that macroeconomic stability means little when a mother cannot afford food, describing food inflation as persistently high and a key concern for the government.
Oyedele explained that the government recognises that falling headline inflation does not necessarily translate to relief for households, particularly regarding food costs. He identified multiple factors constraining food production and supply, including low agricultural yields, seasonal farming patterns, post-harvest losses, inadequate storage and transportation infrastructure, and insecurity in farming communities. The minister highlighted a specific problem with tomato production, noting that Nigeria loses up to 60 per cent of tomato output after harvest due to weak storage and logistics.
To address these challenges, Oyedele said the government would focus on improving food supply by investing in agricultural technology, irrigation, storage facilities and rural roads, while strengthening security in farming communities. The administration is also expanding access to finance for smallholder farmers and small businesses, which he described as important employment sources. He noted that the government's cash transfer programme has now reached over 10 million households, paid digitally and verified by national identity number to ensure support reaches those who need it rather than intermediaries.
Oyedele defended the economic reforms introduced under President Bola Tinubu's administration, arguing that they prevented deeper economic difficulties. He recalled that inflation peaked at 34.6 per cent in November 2024, causing real hardship for families. The minister noted that the government had inherited an unsustainable economic situation in 2023, when petrol subsidy spending exceeded combined expenditure on health and education and the country operated multiple foreign exchange windows. He stressed that reversing the reforms would have exposed the country to deeper economic problems.
The minister stated that the government's assessment of its economic policies must extend beyond macroeconomic indicators to whether Nigerians were experiencing better living conditions. He said the next phase of the economic programme would focus on translating stability into faster and more inclusive growth through private investment, infrastructure development and increased domestic production. On the political implications of the reforms ahead of the 2027 general elections, Oyedele expressed confidence that the government would maintain its economic policy direction and strengthen institutions and laws to make the reforms sustainable.