Higher Oil Production Gives Nigeria Fiscal Space for Reforms – Edun

Nigeria’s Finance Minister, Wale Edun, has said that the country’s increased crude oil production, now at 1.8 million barrels per day, is providing the government with greater fiscal flexibility to support vulnerable households while maintaining its economic reform agenda.

Speaking to Reuters on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington, Edun said the rise in production was boosting government revenue, foreign exchange reserves, and overall fiscal stability.

“It gives us that extra fiscal space within which to look at helping vulnerable households at this time,” he said, stressing that support measures would be targeted rather than broad-based subsidies.

He also pointed to the positive impact of the Dangote refinery, which has helped prevent fuel shortages and ensured steady supply of petroleum products including petrol, diesel, and jet fuel.

On the global economic outlook, Edun acknowledged uncertainty linked to the Iran war, warning that while short-term growth impacts could be minimal, prolonged conflict might push the global economy towards recession.

This comes as Nigeria’s National Bureau of Statistics reported that consumer inflation rose to 15.38% in March 2026, the first increase in a year, up from 15.06% in February.

The IMF has trimmed its GDP growth forecast for Nigeria to 4.1% for 2026, down from an earlier projection of 4.4%, though it expects growth to accelerate to 4.3% in 2027. The Fund cited improved macroeconomic stability and favourable terms of trade, while cautioning about rising goods and transport costs.

Edun reaffirmed the government’s commitment to continuing its reform programme, highlighting the resilience the economy has built in recent years.

“Nigeria is in a position where the resilience that has been built in the economy is actually very obvious for all to see,” he said, adding that the focus remains on sustaining reforms and strengthening the economy’s ability to withstand external shocks.

He also clarified that Nigeria is not seeking financial support from the IMF, underlining confidence in the country’s reform path and fiscal position.

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