Oladele Oduniyi
Minister of Finance and coordinating Minister of the Economy, Wale Edun has said that Nigeria must grow its economy by at least 7% annually to meaningfully improve the lives of its masses and vulnerable citizens.
Speaking at a high-level policy dialogue on local government fiscal autonomy in Abuja on Tuesday, Edun said President Bola Tinubu’s administration has already laid the foundation for stabilisation and long-term resilience through decisive early reforms.
The dialogue, organised by Agora Policy in collaboration with the Centre for Fiscal Transparency and Integrity Watch (CeFTiP), The Cable, and the MacArthur Foundation, gathered senior policymakers, civil society leaders, and development stakeholders to explore how fiscal autonomy for local governments can foster inclusive growth and better service delivery.
Edun explained that the administration’s initial measures tackled major macroeconomic distortions, including pricing issues and structural bottlenecks that hindered growth and investment.
“We have made the groundwork for stimulating economic resilience and macroeconomic stability,” he said. “The first phase was removing major macroeconomic disruptions in the form of food pricing, employment growth, market pricing, and employment change.”
He noted that the government is now entering the second phase of its economic reform plan, which focuses on stabilising key indicators, containing inflation, reducing fiscal deficits, and increasing revenue.
“To really help the poorest and most vulnerable, we need to be doing around 7 per cent per annum,” Edun added.
The minister also commented on the wider significance of the recent Supreme Court ruling mandating direct funding for democratically elected local governments, describing it as a transformative moment in Nigeria’s governance framework.
He stressed that true local government autonomy, when effectively implemented, can speed up development at the grassroots by bringing decision-making and resource control closer to communities.
“It is the collaboration, professional determination, and willingness of all to achieve success that will be paramount in ensuring that we achieve what those justices of the Supreme Court have laid down for us,” he said.
Edun revealed that the federal government is advancing several initiatives to strengthen local governance capacity, including a national nutrition programme covering all 774 local government areas and the 774 Local Government Connectivity Project aimed at expanding digital infrastructure.
“The construction of critical digital technology to increase connectivity has significantly improved access to markets, both domestic and international, access to education, access to health services, and thereby fostering inclusive economic growth,” he noted.
Executive Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, called on local governments to approach their new financial independence with a firm commitment to fiscal discipline and transparency.
“I strongly call on all local governments in Nigeria to approach the implementation of their autonomy with clear commitments to fiscal transparency, accountability, and prudence,” Muruako said.
He cautioned that while autonomy enables local governments to engage directly with financial institutions for development financing, borrowing must be carefully managed and aligned with the Fiscal Responsibility Act.
“With fiscal and financial autonomy, local governments now have the opportunity to approach banks and other financial institutions for borrowing to fund development projects. I strongly advise LGAs to exercise caution and adhere strictly to the terms, conditions, and limitations outlined in the FRA to ensure sustainable fiscal management,” he explained.
Muruako, who has previously served as a local council chairman and held leadership positions in the Association of Local Governments of Nigeria (ALGON), emphasised that autonomy should translate into improved service delivery and better human development outcomes for communities.