Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the projected 4.6% GDP growth rate for 2025 does not align with the administration’s ambitious economic goals.
Instead, the government is pursuing a 7% annual GDP growth rate to cut poverty and accelerate economic progress. Edun made this declaration while speaking at the Arise/KPMG Budget Day event on Monday, March 10, 2025. He expressed confidence in Nigeria’s economic trajectory, citing improved macroeconomic stability, a better business environment, and expected inflation reductions.
Economic Growth Drivers and Private Sector Participation
The minister highlighted key factors expected to drive economic expansion, including higher oil production, stronger revenue performance as outlined in budget projections, and savings from the removal of fuel subsidies.
He emphasized that Nigeria must go beyond the 4.6% projection, stating, “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 stressed that the private sector is central to Nigeria’s economic transformation, particularly in addressing the country’s $100 billion annual infrastructure deficit. The Minister noted that it is not the government budget that will solely fund infrastructure projects, but rather, President Bola Tinubu’s policy is focused on mobilizing private sector investments.
He explained that recent Federal Executive Council (FEC) rulings have removed administrative barriers, allowing for public-private partnerships (PPPs) to take charge of major projects. He cited infrastructure developments like the Lagos-Abeokuta Road and the Benin-Asaba Highway, both of which are designed to improve production and efficiency in travel, potentially reducing travel times by up to 75%.
Reforms in Budget Funding Strategy
Edun also announced significant changes to Nigeria’s budget financing model, explaining that instead of relying on 80% domestic borrowing, the government has adjusted the funding structure to a more balanced mix of 40% domestic, 40% international, and 20% alternative sources.
He clarified that this shift allows more room for private sector players to access financial markets, ultimately leading to greater investment opportunities. He reiterated that the government is committed to maximizing its balance sheet through joint ventures and public-private partnerships that can leverage public resources more efficiently.
The finance minister reaffirmed that the economic reforms implemented since January 2025 have already begun to yield positive results. He pointed out that these policies have restored 5% of Nigeria’s GDP, reversing losses caused by previous fiscal mismanagement.
As the government continues to implement new measures, the ultimate goal remains to foster a stable economy that encourages investment, creates jobs, and significantly reduces poverty.
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