Nigeria’s Reforms Can Transform Africa, Says Oyedele

Nigeria’s economic reform programme offers lessons for African countries seeking sustainable growth, stronger regional trade and improved living standards, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said.

Oyedele spoke on Wednesday at the Africa’s Golden Future Forum in Bangkok, Thailand, where he identified fuel subsidy removal, exchange-rate liberalisation and tax reform as key pillars of Nigeria’s economic reform programme.

According to a statement by the Head of Media, Federal Ministry of Finance, Efe Ovuakporie, the minister said the reforms were laying the foundation for inclusive growth and job creation but stressed the need for African countries to address structural barriers limiting trade and investment.

“The reforms, he said, are laying the foundation for inclusive growth and job creation, but African countries must also tackle the structural barriers limiting trade and investment across the continent,” the statement reads in part.

Oyedele stressed the importance of properly sequencing reforms, noting that removing the fuel subsidy before liberalising the exchange rate helped manage the impact of rising costs.

The statement added that consistent communication, strong institutions and policy consistency were essential to sustaining public confidence during the transition.

READ ALSO: Oyedele: Margin Discount Should Not Be Mistaken For Subsidy

The minister called for the removal of trade barriers, improved infrastructure and deeper regional integration to unlock the potential of the African Continental Free Trade Area.

He identified energy, logistics, storage and processing infrastructure as critical to improving competitiveness across the continent.

On Nigeria’s efforts to improve trade, the statement said the country was developing an economic policy framework to better align trade, fiscal and monetary policies, while rolling out a National Single Window to simplify border procedures and improve trade efficiency.

“The minister called for removing trade barriers, improving infrastructure and deepening regional integration to unlock the African Continental Free Trade Area,” the statement reads.

Oyedele also emphasised the need to protect vulnerable citizens from the effects of economic reforms, citing the government’s cash transfer and education support programmes.

According to the statement, Nigeria’s cash transfer programme has reached more than 10 million households, while its education support programme has benefited over 1.5 million students.

Also speaking at the forum, the President of the African Development Bank, Sidi Ould Tah, called for policy commitments across the continent to translate into tangible results.

Ould Tah cited the bank’s budget support for reforms in Nigeria and Egypt, as well as its collaboration with development partners to expand electricity access across Africa.

He highlighted Mission 300, a World Bank-led initiative aimed at connecting 300 million Africans to electricity by 2030, noting that more than 30 countries had signed energy compacts requiring coordinated reforms, investment and private-sector participation.

The AfDB president also raised concerns about the low level of trade among African countries.

“Intra-African trade remains at about 15 percent of the continent’s total trade, against 40 and 60 percent in other regions,” the statement quoted Ould Tah as noting.

He said the African Development Bank directs more than 60 per cent of its financing towards infrastructure, including regional connectivity projects.

Ould Tah added that the African Development Fund’s regional financing mechanism could cover up to 90 per cent of eligible costs for projects involving more than two countries, helping to address funding gaps that often delay cross-border infrastructure development.