18th August 2025
When Ngozi Okonjo-Iweala stopped over in Nigeria last week to praise the Federal Government for achieving economic stability, hell was let loose, expectedly among the opposition parties and the ruling party. Given the stature of the former minister, nationally and internationally, the opposition felt she was pulling the carpet under their feet by praising the positive outcomes of the government policies. They cared less about the extension or the appeal aspect of her speech.
The World Trade Organisation chief said, “We think that the President and his team have worked hard to stabilise the economy, and you cannot improve an economy unless it is stable. Therefore, he deserves credit for the economic stability. So, the reforms have been in the right direction.” No matter where you stand in this matter, we must recognise some stability in the exchange rate, attempting to but nor really, settling at N1,500 to $1; the inflation rate has been hovering towards 20 per cent, and, in the monetary policy rate remains unchanged while the fuel price continues to vacillate between N850 and N990 per litre. Macroeconomic policy stability is a necessary condition for economic growth, though not a sufficient condition. Whether these levels of stability are desirable is another issue, and we should return to discuss that soon.
The aspects that the opposition did not care about, but which should interest them, were when she said, “What is needed next is growth. We now need to grow the economy, and we need to put in social safety nets so that people who are feeling the pinch of the reforms can also have some support to be able to weather the hardship.” Furthermore, she explained, “How do we build a social safety net to help Nigerians cushion the hardship they are feeling? Then, how do we grow the economy so that we can create more jobs and put more money in people’s pockets? “
The ex-minister recognised that the economy is not growing and needs to. Also, she identified the hardships citizens are going through and the need to reduce the impact of such hardships. She believed in the existing low level of employment and the importance of growing the economy to improve the employment situation and thereby raise the incomes of both the citizens and the government (through income tax). The way forward, she said, was the main discussion she had with the President.
Recent and current information from and on the states in terms of infrastructural development shows that progress is being made in some states. However, physical infrastructure development, which is a key sector of the economy, generates less employment compared to agriculture and manufacturing. Agricultural development is hampered by insecurity and laziness. Insecurity in the North and laziness in the southern parts. Discussion on this will be explored in another write-up. For now, let us see why the economy is not growing.
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