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Double-digit inflation, depreciating exchange rate as factors affecting Economic growth – Edun

By Matthew Denis

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has revealed some salient concerning the Nigeria’s current economic situation.

He made the disclosure during a media parley in Abuja while noting that the last time the country’s economy was stable was approximately a decade ago.

Edun pointed out that presently, the economy is not performing as it should. It is growing at a rate just slightly above the population growth rate.

The Minister stressed that factors such as slow growth, double-digit inflation, a weak and depreciating exchange rate, and security concerns, all of which are preventing economic growth and lifting Nigerians out of poverty.

He then highlighted that around a decade ago, in 2013 and 2014, the economy was thriving with a growth rate of about 6%. However, he emphasized that the circumstances that supported that growth in the 2010s are not present today.

“I think as we all know, we are not where we should be. The economy is barely growing above the rate of population growth.

“But it was not always so, and I think in trying to look at the way forward, if we now have a situation of slow growth, double-digit inflation, weak/depreciating exchange rate, as well as security concerns that are resulting in an economy that is not growing and not taking Nigerians out of poverty.

“If we think back to the last time when the economy was stable- when it was growing, when inflation was low, and the interest rate was affordable, that period was about a decade ago. Growth was about 6% in 2013 and 2014.”

As a result, the government is looking to encourage private sector involvement in solving these issues, particularly through foreign direct investments (FDIs) and domestic investments by Nigerians, as part of President Tinubu’s economic recovery strategy.

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