Edun Defends Reform Path as Oteh, Sanusi Push Capital, Structural Reset

Nigeria’s economic reform programme is being executed with safeguards for low-income households, Minister of Finance Wale Edun has said, as policymakers and financial leaders intensify debate over how to balance short-term pain with long-term stability and growth.

Speaking in Abuja at the Oxford Global Think Tank Leadership Conference, Edun acknowledged that recent reforms have coincided with higher living costs, particularly for food and transport, but maintained that the government has embedded social protection into its adjustment strategy.

According to him, a nationwide digital cash transfer system is targeting 15 million households, with beneficiaries verified by name and National Identity Number and payments made directly into bank accounts or mobile wallets to ensure transparency and traceability.

He said the government would soon publish data showing recipients of the first, second and third tranches, in response to concerns from communities yet to benefit. Beyond direct payments, Edun disclosed that a ward-level development initiative is being rolled out across Nigeria’s 8,809 wards to channel resources and information closer to grassroots enterprises. The programme is designed to support small businesses, cottage industries and local entrepreneurs to expand production and build sustainable livelihoods at the community level.

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Edun stressed that the reform agenda is not limited to macroeconomic stabilisation but is structured to ensure that gains “reach right down to the lowest levels of society,” arguing that the credibility of reforms depends on visible impact among vulnerable groups.

While the minister focused on cushioning mechanisms, former Securities and Exchange Commission Director-General Arunma Oteh shifted attention to the financing architecture needed to sustain growth, warning that Nigeria cannot close its development gaps without mobilising long-term, reasonably priced capital.

She said both the government and private sector require patient funding to drive infrastructure expansion and enterprise growth, noting that inadequate infrastructure remains a binding constraint on productivity.

Citing international comparisons, Oteh said Nigeria’s infrastructure spending, estimated at 4–5 per cent of GDP, falls far short of what is required to bridge deficits in power, transport and logistics.

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She argued that raising investment towards double-digit levels as a share of GDP is critical if the country is to unlock growth, create jobs and lower business costs. According to her, scaling up access to affordable finance for small businesses must go hand in hand with increased public investment in economic infrastructure.

Oteh also highlighted the underutilisation of Nigeria’s mineral endowment, pointing to dozens of commercially viable minerals that remain largely untapped.

She called for structural changes that would enable broader participation in developing mineral resources, linking diversification of the extractive base to revenue expansion and employment generation.

Her think tank, she noted, is preparing a report focused on reforming Africa’s mineral sector as part of efforts to deepen policy conversation around resource-led development.

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Adding historical context to the reform debate, former Central Bank Governor Sanusi Lamido Sanusi argued that current hardships reflect the cumulative cost of postponing difficult policy decisions, particularly fuel subsidy removal.

He described the previous subsidy regime as fiscally unsustainable, exposing government finances to open-ended liabilities tied to global oil prices and exchange rate movements.

According to him, years of borrowing to fund the system placed the country on a dangerous fiscal path, making eventual adjustment more painful. Sanusi said the responsibility of leadership lies in recognising the costs of reform while putting mitigation measures in place, rather than avoiding corrective action.

He also commended the current Central Bank leadership for focusing on restoring monetary stability, noting that a predictable macroeconomic environment is a prerequisite for sustainable growth.

Taken together, the positions outlined at the conference underscore the policy dilemma facing Nigeria: reforms aimed at restoring fiscal and monetary balance must be matched with effective social protection and a financing strategy capable of unlocking long-term capital. How well these strands are aligned will shape whether the adjustment period translates into broader-based growth or prolonged strain for households and businesses.