•World Bank: There are clear signs of macroeconomic stability occasioned by reforms 

•Oyedele: Nigeria avoided economic catastrophe by implementing reforms

•Declares new laws have not added tax burden on masses but repealed, reversed many unfriendly regulations, insists reforms people-centric, growth focused, and efficiency driven 

•Says country can attract $2 billion monthly from remote work opportunities enabled by tax reforms

Ndubuisi Francis, James Emejo in Abuja and Nume Ekeghe in Lagos

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has declared that the removal of fuel subsidies and foreign-exchange reforms have strengthened public finance, improved confidence, and redirected national resources towards citizens and productive investment.

Edun also restated the federal government’s commitment to disciplined fiscal reforms, transparency, and private sector-driven growth under President Bola Tinubu’s Renewed Hope Agenda.

He spoke in Akure at the South West Stakeholders Dialogue.

His remarks came as World Bank Country Director for Nigeria, Dr. Matthew Verghis, said Nigeria was at a turning point, with clear signs of macroeconomic stability emerging from government’s ongoing reform efforts.

Speaking yesterday in Abuja, at the second edition of BoI Development Lecture Series, Verghis pointed to easing inflation, rising reserves, and growing industrial confidence as evidence that policy consistency and fiscal discipline were beginning to yield tangible results.

Similarly, Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, said the country escaped a major economic crisis through the implementation of bold economic and tax reforms initiated by the Tinubu administration.

Oyedele said, during an interactive session with media editors, that there would have been unmet Foreign Exchange (FX) demand, negative net external reserve, and over N50 trillion in Ways & Means, if decisive actions were not taken.

Chairman, Bank of Industry (BoI), Dr. Mansur Muhtar, called for deeper collaboration among public institutions, private investors, and development partners to create an environment conducive to inclusive and sustainable growth.

Managing Director/Chief Executive, BoI, Dr. Olasupo Olusi, said development finance must move beyond project-based lending to become an enabler of structural transformation, capable of unlocking private capital, driving innovation, and ensuring that economic growth translated into real improvements in citizens’ lives.

Muhtar and Olusi made the comments yesterday in Abuja at the second edition of BoI Development Lecture Series.

Quoting Edun, Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga, said in a statement, “Nigeria’s resources are now benefiting the many, not the few. Our reforms are levelling the playing field, boosting competitiveness, and enabling sustainable economic expansion.”

Edun highlighted what he called early gains as faster GDP growth, easing inflation, and a stabilising exchange rate — alongside key interventions, including direct benefit transfers, student financing under NELFUND, and plans for a 90,000-kilometre fibre-optic network across the country to expand digital access and support innovation.

He said the administration remained focused on reforms that would attract investment, deepen economic inclusion, and position Nigeria for long-term prosperity.

“We are creating the right conditions for business to thrive and for every Nigerian to participate in the nation’s progress,” the minister said.

Speaking at the second edition of BoI Development Lecture Series, in Abuja, Verghis described the removal of Nigeria from the Financial Action Task Force (FATF) grey list as a landmark achievement, signalling that the country’s financial system now meets international anti-money laundering standards.

He said, “It is a signal that Nigeria’s anti-money laundering structures now meet international benchmarks. That single step enhances investor trust and strengthens the foundation for sustainable economic growth.”

The World Bank country director, however, cautioned that poverty and unemployment remained persistent challenges. He stated that millions of Nigerians were yet to feel the benefits of macroeconomic reforms.

Verghis said, “We are seeing progress in stabilization, but the purchasing power of citizens remains weak because inflation is still high.

“To sustain these reforms, we must focus on policies that drive job creation and increase access to finance.”

According to him, Nigeria must adopt a new model of development finance that mobilises private capital and leverages digital innovation to fill existing gaps in infrastructure and enterprise funding.

He said traditional models in which governments and donors directly funded infrastructure were no longer sufficient to meet Nigeria’s enormous needs, estimated at hundreds of billions of dollars annually.

“Following conventional financing approaches will not take us close to our infrastructure or enterprise goals,” Verghis said.

“We need a shift, one that treats development finance not as an end in itself, but as a tool for structural transformation,” he added.

He said the World Bank was supporting a range of new mechanisms to deepen access to finance in private investment through initiatives including the Fostering Inclusive Finance for MSMEs (FIRM) Project, a $500 million initiative expected to attract at least four times that amount in private sector funding.

The project aims to bridge Nigeria’s $120 billion financing gap for small and medium enterprises by deploying innovative instruments, such as subordinated debt, MSME investment funds, and partial credit guarantees.

Verghis said, “We are very excited about the FIRM project.”

He explained, “It will expand MSME access to long-term capital and provide the financial infrastructure needed for growth.”

He also emphasised the potential of digital innovation to transform Nigeria’s financial landscape.

He said, “Some of Africa’s most creative fintechs are based here in Nigeria,” stressing, “By leveraging technology, we can make credit cheaper, faster, and more inclusive, especially for the underserved segments of the economy.”

Verghis pointed to InfraCredit and the proposed Nigeria Infrastructure Finance and Guarantees Platform as transformative tools for sustainable project financing.

He said those structures could enable financiers and project developers to collaborate more efficiently, creating a “bankable pipeline” of infrastructure projects without the delays typical of traditional public-private partnerships.

Oyedele, while giving an overview of the Nigerian economy and current fiscal and tax reforms during the interactive session with media editors, said, “While some of the reforms have come with pains, the counterfactual outcomes – without the reforms – would have been a total economic collapse.”

He said, “These reforms halted the economic decline, stabilised the economy, and now beginning to stimulate growth structurally to ensure sustainability.”

He said the country would have witnessed larger trade deficit and negative balance of payment, multiple exchange rate windows, and tax to GDP ratio of less than 10 per cent, as well as debt service to revenue ratio of over 100 per cent.

He stressed that ongoing fiscal reforms were designed to create a better environment for businesses and households, while unlocking Nigeria’s digital potential through policy clarity and structural changes.

He said but for the current reforms, the subsidy regime would have collapsed, leading to product scarcity, hyper-inflation and high interest rates, as well as higher budget deficit and near zero capital expenditure (CAPEX) spending.

However, he said the country had turned the corner.

Oyedele stated, “We are no longer where we used to be; painful but necessary reforms are beginning to yield positive macro results.”

He stressed that contrary to general perception that the current government was introducing new taxes on the masses, many taxes had been repealed, reversed or suspended, including five per cent excise tax on airtime and data; cybersecurity levy on money transfers; carbon tax on single use plastics; excise tax on imported vehicles; import duties on food items, agriculture and pharmaceuticals; four per cent import levy, FRCN charge on private companies; and expatriate employment levy.

He said reforms had resulted in trade surplus, balance of payment, unified official exchange, and reduced gap with the parallel market.

According to him, the country is now off the FATF grey-list while FX forwards have been cleared with net external reserve of over $23 billion, among other salutary outcomes.

Oyedele said the wasteful subsidy programme had been eliminated, with guaranteed petroleum product availability amid rising crude oil and gas production, and a high but moderating interest rate environment, market friendly policies, upgrades of sovereign credit rating, among others.

He explained that by granting input VAT credits on assets and overheads not previously applicable, the new tax reform will lower business cost and enhance cash flows.

The tax reform chairman also said combined with the reduction of Company Income Tax (CIT) from 30 per cent to 25 per cent, companies will be more profitable, leading to higher valuation.

Oyedele disclosed that the federal government planned to harmonise subnational taxes and levies, evolve a presumptive tax regime for hard to tax persons, and address other structural and fiscal constraints.

He said the government further aimed at reducing corporate tax rate, effecting budget and spending reforms, constitutional amendments, and implementing a voluntary disclosure programme.

He stated that the government was currently developing a national fiscal policy framework, and tariffs review and redesign, as well as harmonisation of federally collectible taxes and levies.

Oyedele added that work was ongoing on a national policy on excise tax on harmful consumptions, and initiatives to promote business formalisation, among others.

He said reforms had significantly enhanced the fiscal condition of state governments, explaining that states have about 100 per cent of revenues and other resources in the country.

He said, “Roughly about 85 per cent of Nigeria’s resources are assigned to states and LGs. Fiscal federalism should focus on optimising all revenue sources rather than re-allocation e.g. Personal income tax to total tax is less than eight per cent in Nigeria compared to 30 per cent globally.”

He also said reforms were people-centric, growth focused, and efficiency driven, adding that the new laws have exemption or reduction of withholding tax rates, higher exemption threshold for small businesses, as well as progressive tax regime which eliminates tax on investment and capital.

According to him, ongoing reforms will facilitate economic growth and shared prosperity, reduce business risks, lower tax burden, and create a competitive tax regime, among other benefits.

Similarly speaking, yesterday, at the Haulmace and Logistics Magazine Annual Conference and Exhibition in Lagos, Oyedele estimated that Nigeria could attract as much as $2 billion monthly through remote work opportunities created by recent tax reforms, aimed at removing disincentives to digital employment.

Speaking on “Tax Reforms: From Policy to Practice,” Oyedele explained that one of the key barriers identified during the reform process was a provision in the old tax law that discouraged foreign companies from hiring Nigerians to work remotely.

He stated, “What do we expect from these reforms, we expect a better country one where businesses can thrive, whether they are big, medium, or small, whether they are local or multinational.

“We expect households to do better. Individuals should be able to feed their families, cover their basic needs, and have opportunities to create wealth.

“One of the problems we discovered during the course of these reforms is in our digital and remote work environment. Nigeria had a provision in its law that said if you hire a Nigerian to work for you remotely, that company must come to Nigeria and pay tax.

“So those companies asked themselves, what’s special about these Nigerians, then they went to Kenya, South Africa, the Philippines, and India, instead.

“That’s why, when you call some customer service centres, the person you’re speaking with is in India or the Philippines. That’s business process outsourcing it’s a multibillion-dollar global industry. But they weren’t hiring Nigerians because our laws were upside down.”

Oyedele added, “This new tax law has removed that problem. Think about it, our English is better than that of Indians or Filipinos. Our time zone is perfect, sitting close to the equator, allowing easy connection with both Asia and America. But because of our unreasonable policies, we were shut out.

“Imagine that from next year, we can attract just one million jobs in that space, one million young Nigerians earning about $2,000 per month. Just process what that means: that’s about $2 billion flowing into the economy every month empowering families, strengthening the naira, and creating prosperity.”

Oyedele clarified that the five per cent fuel surcharge being discussed was not a new introduction, but an existing provision in the Federal Roads Maintenance Agency (FERMA) Act that had never been implemented because of fuel subsidy.

He stated, “The idea was, let’s collect five per cent of fuel dedicated to fixing roads: 40 per cent for federal roads, and 60 per cent for subnational state and local governments. Brilliant idea. And this thing I’m telling you is done in more than 150 countries worldwide. They dedicate money to roads because roads require a lot of investment.”

Oyedele explained that the surcharge had existed in the laws, but was never activated, as subsidised petrol made it impractical for the government to charge itself the levy.

“The reason why they didn’t collect it before is because fuel products were subsidised. If you now subsidise products and you add 5 per cent on top of it, it is government that will also pay it. It didn’t make sense, so they didn’t collect it,” he said.

Oyedele said while the FERMA proposal to commence collection after subsidy removal was considered, it was deferred on the grounds of economic sensitivity. The reform team therefore included a safeguard in the new tax law to ensure the surcharge could only take effect when economic conditions were favourable, he explained.

Oyedele stated, “So we put a language, the lawmakers put a language that says this tax shall not come into effect with the new tax law automatically in January 2026.

“It will only come into effect at such a time when the finance minister issues an order, not just an order, but one that is published in the official gazette so you can’t do it secretly. And that money will be dedicated to fixing roads.”

Oyedele stressed, “For me, the time will be right when the naira appreciates or the price of crude oil in the international market falls, either one of the two, or combined, by at least five per cent. Then you can introduce that tax without changing the pump price.”

He added that the overall goal of the fiscal reforms was to move Nigeria from mere economic stabilisation to inclusive growth.

According to him, “This is the first time in my adult life that government has carried out reforms that are intentional, structured, and designed to be sustained. For a long time, the economy was stopped from declining, then it was stabilised, and now we are entering the growth phase that has to be inclusive to carry everybody along for those reforms to be sustainable.”

At the second edition of BoI Development Lecture Series, Muhtar and Olusi advocated a new framework for development finance, designed to accelerate job creation, unlock private capital, and deepen financial inclusion across the country. They also stressed the urgency of rethinking Nigeria’s development finance architecture to reflect changing global realities and domestic needs.

However, Muhtar said BoI remained committed to its mandate of driving industrialisation and supporting businesses through innovative and responsible lending.

He said, “At the Bank of Industry, we believe that inclusive and sustainable investment-led growth is not just a goal, it is a necessity.

“Our mission is to drive industrial transformation by supporting enterprises, deepening sectoral linkages, and embracing technology to unlock new opportunities.”

He stated that the annual lecture series had become an intellectual forum for shaping Nigeria’s future, serving as a meeting point for policymakers, investors, academics, and civil society to share ideas on how to move the country’s development finance agenda forward.

Muhtar stated, “This platform is about rethinking how we fund and drive Nigeria’s development. The challenges of today from digital disruption and global economic uncertainty to climate change demand that we innovate in how we finance progress and build stronger institutions.”

Muhtar emphasised that Nigeria’s financial institutions must evolve from being traditional lenders to becoming development catalysts capable of providing both financial and non-financial support to enterprises.

He said BoI was already pursuing that vision through targeted interventions for small businesses, women entrepreneurs, and technology-driven enterprises.

He said, “Through our programmes, we are demonstrating that development finance is not only about disbursing loans.

“It is about enabling businesses to scale, build capacity, and become globally competitive. It is about supporting the real economy the farmers, manufacturers, innovators, and creators who make up the backbone of our society.”

In his remarks, Olusi said the event reflected the institution’s evolving role as a strategic partner in shaping Nigeria’s development narrative.

He stated that the annual public lecture, which began last year, had become a thought-leadership platform for generating ideas to strengthen Nigeria’s development ecosystem.

Olusi said, “The Bank of Industry is not just a financial institution. We are a partner in shaping Nigeria’s development journey.

“This year’s theme is both timely and urgent. The global economy is shifting rapidly—from climate pressures to digital disruption and from evolving trade patterns to growing demands for inclusive growth. Nigeria cannot afford to stand still.”

He stressed that development finance must move beyond project-based lending to become an enabler of structural transformation, capable of unlocking private capital, driving innovation, and ensuring that economic growth translates into real improvements in citizens’ lives.

According to him, the focus of Nigeria’s development finance institutions should align with President Bola Tinubu’s Renewed Hope Agenda, which envisions a resilient and sustainable economy that empowers people and fosters innovation.

Olusi stated, “President Tinubu has consistently emphasized building a resilient, sustainable, and inclusive economy—one that creates wealth and empowers citizens. Development finance is central to this vision. It must not only fund projects but drive transformation and inclusion.”

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