The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has acknowledged that many Nigerians are yet to feel the benefits of the Federal Government’s economic reforms.
He said the impact of macroeconomic stability must be reflected in household living conditions.
Oyedele stated this on Wednesday while speaking at Chatham House in London, where he defended the removal of the petrol subsidy and the unification of the foreign exchange market, while admitting that food prices and the cost of living remained major challenges.
“Macroeconomic stability means little to a mother who still cannot afford food. And to be candid, food inflation remains too high,” he said.
The minister said the government recognised that falling headline inflation did not necessarily mean that households were experiencing relief from rising prices, particularly the cost of food.
He explained that food inflation remained a concern because of low agricultural yields, seasonal farming, post-harvest losses, inadequate storage and transportation, as well as insecurity in farming communities.
“We wait for the rain before we plant. Post-harvest losses that waste a large share of what our farmers produce,” Oyedele said, identifying some of the challenges affecting food production and supply.
He added that Nigeria lost a significant proportion of its tomato output after harvest, partly because of weak storage and logistics.
“For tomatoes, we lose up to 60 per cent of what we produce,” he said.
According to the minister, the government’s response would focus on improving food supply by investing in agricultural technology, irrigation, storage facilities and rural roads, while strengthening security in farming communities.
He also said the government was expanding access to finance for smallholder farmers and small businesses, which he described as important sources of employment.
Oyedele said the administration was also providing direct support to vulnerable households while longer-term investments were being implemented.
“Our cash transfer programme has now reached over 10 million households, paid digitally and verified by national identity number, so that support reaches the people who need it, not the middlemen,” he said.
The minister’s remarks came as he defended the economic reforms introduced by President Bola Tinubu’s administration, including the removal of petrol subsidy and the unification of the foreign exchange market.
He acknowledged that the reforms had imposed significant pressure on households, noting that inflation peaked at 34.6 per cent in November 2024.
“Families felt it at the markets, at the dining table, and at the pump. That pain was real and we owe Nigerians an honest account of what it has bought,” he said.
Oyedele argued 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 said the reforms were intended to address those distortions and restore economic stability, insisting that reversing them would have exposed the country to deeper economic difficulties.
“Reform did not create the hardship. It prevented a deeper one that was building in silence,” he said.
The minister added that the government’s assessment of its economic policies should go beyond improvements in macroeconomic indicators to whether Nigerians were experiencing better living conditions.
“Our test is clear. Reform must be felt in the kitchen, not only in the reserve numbers. We will judge ourselves by the test, by that test, and we invite you to judge us by it too,” he said.
He said the next phase of the government’s economic programme would focus on translating stability into faster and more inclusive growth through private investment, infrastructure development and increased domestic production.
“The task now is to turn stability into accelerated, inclusive growth,” Oyedele said.
He explained that the government was seeking to move away from reliance on public borrowing towards private capital, while directing investment into power, transport, agriculture and agro-processing.
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.
He said the administration was strengthening institutions and laws to make the reforms sustainable, while improving budget preparation and execution to ensure that public spending followed established plans.
“The best economic policy in an election year is the same as in any other year. That is the point of credibility,” he said.
Oyedele added that the government would continue publishing information on revenue, borrowing, debt servicing and spending to strengthen transparency.
He maintained that the ultimate test of the reforms would be whether economic improvements translated into tangible benefits for households and businesses.