The Federal Government has announced that the Highways Management and Development Initiative will drive the concession of major highways to enhance road infrastructure.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known during a Zoom dialogue meeting in Abuja on Thursday.
“The Highways Management and Development Initiative would facilitate the concessioning of major highways to improve road infrastructure,” he said.
Edun highlighted the significant progress Nigeria’s economy has made over the past 18 to 20 months, noting that the country narrowly avoided collapse after excessive reliance on illegally borrowed Central Bank funds that exceeded regulatory limits.
“Where we are now is that, in the last quarter of 2024, the economy grew at roughly 3.84 per cent, which is close to the annual target of 3.4 per cent,” Edun said.
Edun noted that inflation had begun to ease, dropping by 1.3 percentage points between January and February, with food inflation also showing signs of decline. He added that petroleum and energy costs had decreased due to sectoral dynamics.
He also pointed out the stabilisation of the exchange rate, which has helped lower the cost of imported goods and services, particularly in sectors like healthcare and education.
“Additionally, the cost of petroleum and energy is down due to sectoral dynamics,” he expounded.
Edun further stated that Nigeria’s balance of trade had turned positive, with government revenues rising by 20% in 2024.
The country’s budget deficit was reducing, and debt servicing as a percentage of revenue had dropped, contributing to an overall improvement in living standards.
“With this progress, the government is now focusing on further stabilisation and creating an environment that encourages private sector investment,” Edun said, stressing the importance of leveraging technology to boost revenue from government-owned enterprises.
Edun revealed that the proposed tax reform bill would raise the top-end personal income tax rate from 18.6% to 25%, alongside measures to tighten government spending.
“Economic growth will be driven by agriculture, housing, and infrastructure,” he stated, adding that the government plans to continue improving farming techniques to ensure good harvests and introduce a 25-year low-interest mortgage to address the housing deficit.
