The Minister of Finance, Wale Edun, has stated that the projected 2025 Gross Domestic Product growth rate of 4.6 per cent falls short of the administration’s goals.
He said the government is instead, targeting a 7 per cent annual growth rate to accelerate economic transformation and reduce poverty.
Edun made this disclosure while speaking at the Arise/KPMG Budget Day on Monday.
The Minister remains optimistic about Nigeria’s economic prospects, citing expected inflation declines, enhanced macroeconomic stability, and a more business-friendly environment.
“We projected growth at 4.6%, but I think that is not our ambition. Our ambition is to, as soon as possible, get to about 7% per annum GDP growth, because it is at that level that you begin to really lift people out of poverty,” Edun stated.
He identified key growth drivers, including improved revenue performance, higher oil production as projected in the budget, and savings from fuel subsidy removal.
He also stressed the need for a business-friendly environment to attract private sector investment.
Edun stressed the private sector’s crucial role in bridging Nigeria’s infrastructure gap, 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,” he noted.
He added that recent Federal Executive Council (FEC) decisions have removed bureaucratic obstacles, enabling private sector-led projects like the Benin-Asaba Highway and Lagos-Abeokuta Road under public-private partnerships.
Edun highlighted positive external developments, including a stable exchange rate, a trade surplus of 13% of GDP, and foreign reserves exceeding $40 billion.
He attributed these gains to the collaborative efforts of the Central Bank of Nigeria and other stakeholders.
Edun disclosed adjustments to the budget’s funding structure, reducing domestic reliance from 80 per cent to a balanced mix of 40 per cent domestic, 40 per cent foreign, and 20 per cent from other sources.
This shift, he explained, allows more private sector access to financial markets, encouraging greater investment.
