Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the country must achieve an annual economic growth rate of at least 7 percent to improve the lives of its poorest and most vulnerable citizens. Edun made this statement during a high-level policy dialogue on local government fiscal autonomy held in Abuja. The event was organized by Agora Policy in collaboration with the Centre for Fiscal Transparency and Integrity Watch (CeFTiP), TheCable, and the MacArthur Foundation.
The dialogue included senior policymakers, civil society leaders, and development stakeholders who discussed how fiscal autonomy for local governments could promote inclusive growth and better service delivery across Nigeria.
Edun explained that President Bola Tinubu’s administration had started implementing reforms to stabilize the economy and create long-term resilience. He noted that these initial actions addressed major macroeconomic imbalances such as pricing distortions and structural obstacles that previously limited growth and investment.
“We have made the groundwork for stimulating economic resilience and macroeconomic stability,” Edun said, adding that “The first phase was removing major macroeconomic disruptions in the form of food pricing, employment growth, market pricing, and employment change.”
He said that the government is now entering a second phase of economic reforms aimed at stabilizing key indicators, controlling inflation, reducing fiscal deficits, and increasing revenue.
“To really help the poorest and most vulnerable, we need to be doing around 7 percent per annum,” Edun reiterated.
Addressing recent developments in governance, Edun called the Supreme Court’s judgment mandating direct funding to democratically elected local governments a transformative step for Nigeria. He argued that proper implementation of local government autonomy could accelerate grassroots development by shifting decision-making 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 also highlighted federal initiatives designed to strengthen local governance capacity. These include a national nutrition program targeting all 774 local government areas as well as a project intended to improve digital infrastructure nationwide. He stated: “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.”
Victor Muruako, Executive Chairman of the Fiscal Responsibility Commission (FRC), advised local governments to implement their new financial independence with transparency and fiscal discipline. “I passionately urge all local governments in Nigeria to preface the implementation of their autonomy with clear commitments to fiscal transparency, accountability, and prudence,” Muruako said.
He cautioned against unrestrained borrowing despite new opportunities for development financing under autonomy. Muruako recommended strict adherence to the Fiscal Responsibility Act when borrowing funds.
Drawing on his experience as a former council chairman and leader within ALGON (Association of Local Governments of Nigeria), Muruako emphasized that true autonomy should result in improved service delivery at community level rather than institutional independence alone.
Ojobo Ode Atuluku, Chair of Agora Policy, urged deeper institutional reforms beyond legal changes if Nigeria wants effective local democracy. She said: “If we are truly committed to restoring the promise of local democracy, then we must pursue a roots-and-branch reform of our local governance system.”
Atuluku suggested reforms such as dismantling systems of political patronage, overhauling electoral processes at the local level, and making councils more responsive to citizen needs. She announced plans for Agora Policy’s Local Governance Accountability (LGA) Portal—a tool designed to track statutory allocations from FAAC (Federation Account Allocation Committee), identify elected officials at each locality, and provide historical profiles since 1999.