Wale Edun blames past policy failures for economic hardships

The Finance Minister, Mr.Wale Edun, has blamed past policy failures for present economic hardships faced by Nigerians under President Bola Tinubu administration.

According to the Diaspora Digital Media (DDM), Edun, while speaking on Friday in Abuja at the launch of the Federal Civil Service Policies and Guidelines on Rewards, emphasized the challenges posed by recent reforms, including the removal of fuel subsidies and the floating of the Naira in June 2024.

“The recent policies have led to a significant increase in fuel prices, rising from ₦234 to over ₦1,060 per liter, and a substantial devaluation of the Naira, from ₦195 to ₦1,652 per dollar.”

Wale Edun admitted that the reforms have caused difficulties, but he believes they were needed to move the country forward.

The minister highlighted the impact of President Tinubu’s reforms, which have been implemented over the past 18 months, stating “these bold and necessary reforms have led to significant transformations in the country.”

“The long-overdue reforms have caused temporary pain, discomfort, and increased cost of living, but the successes and gains are starting to show,”  Wale Edun stated.

Edun noted that market-based pricing for foreign exchange has had a positive impact, boosting government revenues by cutting subsidy spending.

Know more about Wale Edun

Wale Edun is a Nigerian economist, investment banker, and politician who has made significant contributions to the country’s finance and economic sector.

Born on April 20, he holds bachelor’s and master’s degrees in economics from the University of London and the University of Sussex, respectively.

Early Career of  Wale Edun

Edun began his career at Chase Merchant Bank (now Continental) in Lagos, Nigeria, from 1980 to 1986.

He then joined the World Bank in 1986 through the elite Young Professionals program, where he worked on economic and financial packages for several countries in Latin America and the Caribbean.

Political Career of Wale Edun

Edun’s political career began in 1999 when he was appointed Lagos State Commissioner of Finance by then-Governor Bola Tinubu, a position he held until 2004.

On August 16, 2023, President Bola Tinubu appointed him Minister of Finance and Coordinating Minister of the Economy.

Founding of Investment Banking & Trust Company Limited

In 1989, Edun co-founded Investment Banking & Trust Company Limited, now known as Stanbic IBTC, and served as executive director.

He also founded Denham Management Limited, which later became the Chapelhill Denham Group, and served as chairman from 2008 to 2021.

Chairmanship Roles

Wale has held several chairmanship roles, including Chairman of the African Governors’ Forum of the World Bank, Chairman of the Chapelhill Denham Group, Chairman of the Lagos Boxing Hall of Fame, and Chairman of the Livewell Initiative.

Personal Life and Philanthropy

Wale Edun is married to Amy Adwoa Appiah, and they have three sons, including British actor Adetomiwa Edun. He is also a board member and Nigerian chair of the Duke of Edinburgh’s International Award Foundation.

Tinubu’s Oil Subsidy Policy

President Bola Tinubu’s oil subsidy policy has been a topic of significant interest and debate. In May 2023, Tinubu declared an end to fuel subsidies, stating that the costs were no longer justifiable.

The move was expected to free up resources for infrastructure development, education, healthcare, and job creation.

However, recent reports suggest that despite the declared end to subsidies, the government spent N3.6 trillion on petrol subsidies in 2023 and is projected to spend N5.4 trillion in 2024.

This has led to criticism and accusations of lies and denials by government officials.

The removal of subsidies has also had significant economic implications, including:

Increased fuel prices: Petrol prices have tripled, with a liter costing over N1000, up from N230/liter before Tinubu took office.

Devaluation of the naira: The naira has weakened significantly, with the exchange rate moving from N464.51/$ to N1,475.95/$.

Inflation: Inflation has surged to 33.69% in April 2024. Experts argue that while removing subsidies is a good policy, the mitigating instruments were not properly implemented, leading to widespread shocks.

Tinubu’s oil subsidy policy has been met with both praise and criticism. While it’s intended to promote economic growth and sustainability, its implementation has raised concerns about the government’s transparency and ability to mitigate the impacts on vulnerable populations.

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