In a landmark virtual briefing, last week the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun presented a comprehensive update on Nigeria’s economic trajectory to selected members of the media, highlighting significant progress, key priorities, and strategic initiatives to drive sustainable growth and development in the country.
The Minister’s briefing provided a detailed overview of Nigeria’s economic stabilisation efforts, which have yielded notable results over the past 18 to 20 months. According to Minister Edun, the economy has pulled back from the brink of a fiscal crisis, with Nigeria recording 3.84% GDP growth in Q4 2024—close to the 3.4% annual target—while inflation began to ease, revenues increased, and the exchange rate showed signs of strengthening.
Fiscal Discipline and Revenue Reform
Edun reported a 20% increase in government revenue last year, alongside a reduced budget deficit and a decline in debt servicing as a percentage of revenue. He reiterated the government’s commitment to responsible spending, stronger fiscal management, and efforts to raise the tax-to-GDP ratio to 18% over the next 18 months—through improved compliance, digitisation, and broadening of the tax base.
Private Sector as the Engine of Growth
The Minister emphasised that the next phase of economic growth will be driven by private sector investment. A ₦1 trillion low-interest mortgage fund—backed by both public and private financing—will soon be launched to stimulate the housing sector. Additionally, pension funds and institutional investors are being mobilised to finance 5,000 kilometres of roads under the Highways Management and Development Initiative.
Oil, Trade, and External Positioning
While reaffirming Nigeria’s ongoing efforts to diversify the economy, the Minister noted that oil revenue remains essential. Plans are underway to expand domestic refining capacity to 1.2 million barrels per day and ensure a secure, investor-friendly operating environment in the oil sector. He also encouraged exporters to focus on domestic and regional markets to cushion the impact of global shocks, including recent tariff policies introduced by the United States.
Youth Empowerment and Innovation
With an average national age of 16.9 years and over 600,000 graduates annually, the Minister underscored the urgency of youth-focused economic policy. He cited upcoming funding mechanisms to support young entrepreneurs and highlighted the recent launch of a national sports empowerment programme by President Tinubu in Ogun State.
A Call for Partnership
HM Edun declared that this is a time for equity investment, privatisation, and strategic partnerships. He reaffirmed the government’s commitment to enabling a business-friendly environment and fostering sustainable, inclusive growth for all Nigerians.
As Nigeria embarks on this transformative economic journey, the Honourable Minister’s briefing underscores the government’s dedication to prudent fiscal management, strategic investments, and inclusive growth. With a renewed focus on private sector-driven growth, youth empowerment, and strategic partnerships, Nigeria is poised to unlock its full economic potential while also securing a brighter future for generations to come.