By Achile Danjuma
The Senate on Wednesday confirmed the appointment of Professor Taiwo Oyedele as Minister of State for Finance after a rigorous three-hour screening session. During the hearing, lawmakers from across party lines questioned the nominee on a range of critical economic and financial issues, to which Oyedele responded with a comprehensive strategy for fiscal reform.
Addressing Nigeria’s historical dependence on crude oil, Oyedele proposed adopting a forward sales mechanism to shield the economy from the volatility of global oil prices. He argued that this strategy would provide more predictable revenue for government budgeting and stabilise fuel prices for citizens.
“One strategy used in several countries is selling crude forward. Nigeria can lock in a price for a portion of our crude for a period of time,” he explained. “That would guarantee budget financing and also give Nigerians stability, so prices are not fluctuating the way we have seen in recent days.”
Oyedele also tackled the persistent issue of delayed payments to contractors, which often leads to inflated project costs. He attributed the problem to a “trust deficit premium,” where a project initially valued at N1 billion can balloon to N2 billion due to prolonged government indebtedness. His proposed solution is to anchor future contracts strictly on the availability of funds.
The Minister-designate emphasised the need to look beyond traditional revenue sources. He criticised the country’s disproportionate focus on taxation and oil, arguing that this has led to the neglect of other viable sectors.
“For many years as a country, we have disproportionately focused on taxation and oil and gas, and that has taken our attention away from other areas where we can generate revenue,” Oyedele stated.
He specifically identified the solid minerals sector as a major area of untapped potential. However, he noted that growth in this sector is currently stifled by policy uncertainty. Oyedele revealed plans to collaborate with the Minister of Solid Minerals to create a more stable regulatory environment, which may require seeking legislative support from the National Assembly.
“What we have identified as the biggest impediment to the growth of the solid minerals sector is policy uncertainty,” he said. “The team and the Minister of Solid Minerals have been doing a lot, but we need to complement that with a policy certainty environment. We may be coming to the National Assembly in this regard.”
Concluding his remarks, Oyedele stressed the importance of fiscal discipline, advocating for realistic budgeting and the full implementation of approved capital projects to ensure that government spending translates into tangible development for Nigerians.