- The Federal Government targets an annual Gross Domestic Product (GDP) growth rate of seven per cent in 2025, above projected 4.6 per cent
- It said economic growth would be driven by the private sector through infrastructural funding
- The government said external growth factors have seen positive developments
The Federal Government says it targets an annual Gross Domestic Product (GDP) growth rate of seven per cent in 2025, above the projected 4.6 per cent.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government’s seven per cent target is to reduce poverty and drive economic transformation.
Edun stated this at the Arise/KPMG Budget Day on Monday, March 10, stressing that the target will be driven by stronger revenue performance, increased oil production to 2.06 million barrels per day as captured in the 2025 budget estimates, and savings from the removal of fuel subsidies.
He also expressed optimism about Nigeria’s economic trajectory, citing anticipated declines in inflation, improved macroeconomic stability, and a more favourable business environment to support private sector growth.
“We projected growth at 4.6 per cent, but I think that is not our ambition. Our ambition is to, as soon as possible, get to about seven per cent per annum GDP growth because it is at that level that you begin to really lift people out of poverty.
“We expect stronger revenue growth, higher oil production and continued savings from non-spending on subsidy.
“More importantly, there would be greater ease of doing business and this is all to support the private sector,” he said.
Growth to be driven by the private sector
The minister also highlighted the role of the private sector in driving growth and addressing Nigeria’s infrastructure deficit, which requires an estimated $100 billion in annual investment.
“It is not the government budget that will fund, for example, the infrastructure deficit.
“The plan, the commitment of Mr President and his policy is to crowd the private sector.
“And of course, when the private sector thrives, that creates revenue for the government in the form of tax revenues, ” he added.
Edun disclosed that the decisions reached at the recent Federal Executive Council (FEC) meeting have cleared bureaucratic hurdles to pave the way for private sector-led projects such as the Benin-Asaba Highway and Lagos-Abeokuta Road under public-private partnerships.
He stressed that these initiatives aim to improve travel efficiency and productivity, with a potential 75 per cent reduction in travel time for key routes.
External growth factors have seen positive developments
Edun further highlighted that external growth factors have shown positive developments, including a stable exchange rate, a trade surplus equivalent to 13 per cent of GDP, and foreign reserves exceeding $40 billion.
He stressed that the achievements were results of the collaboration between the government, the Central Bank of Nigeria (CBN) and other stakeholders.
Edun also revealed adjustments to the budget’s funding structure, with a shift from 80 per cent domestic funding to a more balanced mix of 40 per cent domestic, 40 per cent foreign, and 20 per cent from other sources.
He said this approach would make for private sector access to financial markets, fostering greater investment opportunities.
The minister said the government is committed to optimising its balance sheet going forward by leveraging public assets and encouraging joint ventures and public-private partnerships.
Nigeria’s GDP increases to 3.84% in Q4 2024
Meanwhile, TheRadar earlier reported that Nigeria’s Gross Domestic Product (GDP) increased by 3.84 per cent in real terms in the fourth quarter (Q4) of 2024, driven by the services sector.
The Q4 GDP figure is an increase from the 3.46 per cent recorded in the same period of 2023, and from the previous quarter, which recorded an identical 3.46 per cent growth rate.
