Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the recent economic turbulence that followed the removal of fuel subsidy and reforms in the foreign exchange market was a necessary outcome of long standing distortions in the system.
Speaking in an interview with The African Report, Oyedele explained that the economy had carried multiple imbalances for years, largely driven by fuel subsidy arrangements and foreign exchange interventions that could no longer be sustained.
He noted that while the reforms were difficult, they were unavoidable if the country was to correct structural problems that had built up over time. According to him, the early impact on prices and household costs was already expected before the policies were implemented.
He pointed out that once fuel subsidies were removed, an increase in fuel prices was certain, and that this naturally affected transportation costs, logistics, and overall price levels across the economy. He added that inflationary pressure in such a situation was not surprising.
Oyedele, however, said the economy is now moving past the initial adjustment stage and beginning to show signs of gradual recovery. He stated that recent data reflects a slowdown in inflation, more stability in the foreign exchange market, and modest but steady growth.
He acknowledged that new global and geopolitical factors have introduced additional pressure, but maintained that the government’s focus has shifted to strengthening growth and ensuring that earlier reforms deliver real benefits.
According to him, future progress will depend heavily on investments in power supply, infrastructure development, and skills improvement, alongside continued efforts to make the business environment more supportive for private sector activity.
The minister also addressed ongoing tax reforms, explaining that the government is working to improve compliance through stronger enforcement systems rather than relying only on voluntary adherence.
He stressed that tax evasion remains a major challenge in the country, adding that no individual or organisation should be considered beyond the reach of the law.
Oyedele further disclosed that recent enforcement efforts have extended to multinational companies, operators within special economic zones, government institutions, and high net worth individuals, as part of a broader drive to strengthen public revenue.
He maintained that the overall goal of the reforms is to build a more stable economy where the benefits of growth are felt by businesses and ordinary citizens across the country.
