Federal Gov’t Sets Ambitious GDP Target Of 7% For Economic Turnaround

Minister of Finance and coordinating minister of the Economy of Nigeria, Wale Edun has the current administration is keen on achieving a seven per cent annual gross domestic growth rate soon, an ambitious target that would require more comprehensive approach to restore the ailing economy to the part of sustainable growth.

The minister said the administration expects higher oil production and continued savings from reduced subsidy spending while also anticipating greater ease of doing business. He said President Tinubu’s policy commitment is to strengthen the private sector.

“Our vision is to as soon as possible get a seven per cent GDP growth because it’s at that level you begin to 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,” Edun said yesterday while speaking at a live programme on Arise TV.

He said it is the private sector that has the funds to fund the infrastructure deficit in Nigeria which requires $100 billion investment per annum. Edun said the government’s plan is to crowd in the private sector.

He said the government recently cleared the way for the private sector by removing the bureaucratic clogs for the private sector to construct the Benin-Asaba Highway, Lagos-Abeokuta Road and many others on a private/public partnership.

In sum, he said about 5000 kilometres of roads would be built by the private sector investors with long time finance, much of which he said is from Nigeria.

Edun said the roads would be built, concessioned and tolled in order to improve travel time by 75 per cent.

Edun re-emphasised that the investment climate is being improved including in oil and gas, agriculture, healthcare and housing, while also pointing to domestic refining of crude oil as an achievement that would count for the government in raking in revenues.

As a result, the minister said government expects productivity growth in the economy, creation of employment and reduction of poverty.

“And of course, when the private sector thrives, that creates revenue for the government in the form of tax revenues, “ he stated.

On the borrowing side of the 2025 National budget, he said the current budget has 40 per cent domestic funding and 40 per cent foreign and 20 per cent from other sources.

The minister said a room is being created for the private sector to access the market in addition to the equity to invest.

He said the government will continue to optimise its balance sheet in 2025 by making the most of its assets, including allowing the private sector in for joint ventures.