By Milcah Tanimu

Wale Edun, the Minister of Finance, has announced that the Federal Government is poised to intensify its efforts in combating the rampant issue of hyperinflation within the nation’s economy. Edun shared this perspective during a two-day retreat organized by the Presidential Committee on Fiscal Policy and Tax Reforms, which took place in Abuja.

Edun expressed optimism about the future trajectory of the economy, underlining the potential impact of President Bola Tinubu’s “Renewed Hope” agenda. He acknowledged that the removal of petrol subsidies had led to an economic deceleration. Nonetheless, Edun assured the populace that strategies were already in motion to alleviate the consequences and address the mismanagement of funds associated with subsidies. He conveyed:

“The President’s aspiration is to foster job creation, diminish poverty, manage micro and macroeconomic policies to establish a stable investment environment, stabilize exchange rates, and steer the economy towards reduced poverty rates.”

“The period of the nation’s gross domestic product (GDP) per capita plummeting by 30 percent over the last decade will soon become a thing of the past with the implementation of Tinubu’s Renewed Hope Agenda.”

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, delineated the committee’s objectives, which encompass fiscal governance, revenue administration, and review of tax policies.

Oyedele enumerated the anticipated outcomes of the committee’s efforts, including optimized taxation structures, streamlined revenue collection processes, an updated national tax policy, and a national fiscal framework.

He also emphasized that the committee would engage in drafting bills for potential constitutional amendments, enhancing revenue optimization, developing a model template for sub-national entities, and establishing a national tax amnesty scheme.

Escalating Inflation
Nigeria’s inflation surged to a rate of 24.08% in July 2023, marking a 129 basis-point escalation compared to the 22.79% recorded in the prior month.

This escalation constitutes the sixth consecutive increase in the headline inflation index this year.

The substantial uptick in inflation was primarily attributed to the complete elimination of petrol subsidies and the concurrent unification and devaluation of the official exchange rate.