Finance Minister Says 4.6% GDP Growth Can’t Lift Nigerians Out Of Poverty

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the government is targeting a seven per cent annual GDP growth rate to drive economic transformation and alleviate poverty, surpassing the projected 2025 GDP growth of 4.6 per cent.

The minister emphasized that the current projection falls short of the administration’s ambitions and reaffirmed the government’s commitment to accelerating economic growth through strategic reforms and private sector participation.

Speaking at the Arise/KPMG Budget Day, Edun stressed that achieving a seven per cent GDP growth rate is crucial for lifting millions of Nigerians out of poverty and fostering sustainable economic development.

He expressed confidence in Nigeria’s economic trajectory, highlighting anticipated declines in inflation, improved macroeconomic stability, and a more conducive business environment as key enablers of the administration’s growth agenda.

“We projected growth at 4.6 per cent, but I think that is not our ambition. Our ambition is to, as soon as possible, get to about 7 per cent per annum GDP growth, because it is at that level that you begin to really lift people out of poverty,” Edun stated.

The minister identified several critical factors expected to drive economic expansion. These include enhanced revenue performance, increased oil production in line with budget estimates, and fiscal savings from removal of fuel subsidies. Edun emphasized that structural reforms and policy measures are being implemented to strengthen Nigeria’s economic fundamentals and create a favorable investment climate.

A significant part of the government’s strategy involves boosting private sector investment, particularly in infrastructure development. Edun highlighted that Nigeria’s infrastructure deficit requires an estimated $100bn annual investment, a funding gap that cannot be bridged solely through government expenditure.

“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 in the private sector,” he explained.

The minister underscored recent Federal Executive Council (FEC) decisions aimed at reducing bureaucratic hurdles and expediting critical infrastructure projects through public-private partnerships (PPPs).

Notable projects include the Benin-Asaba Highway and Lagos-Abeokuta Road, which are expected to improve connectivity, enhance productivity, and significantly reduce travel time on key transport corridors.

“These initiatives are designed to make travel more efficient and productive. For instance, key routes could see up to a 75 per cent reduction in travel time, thereby boosting economic activities and overall productivity,” he noted.

On the external economic front, Edun pointed to positive indicators such as a stable exchange rate, a trade surplus equivalent to 13 per cent of GDP, and foreign reserves exceeding $40bn.

He attributed these achievements to coordinated efforts between the Central Bank of Nigeria (CBN) and other stakeholders to stabilize the economy and enhance investor confidence.

He also noted that fiscal and monetary policies are being aligned to ensure a steady and predictable economic environment, which will support long-term growth and attract foreign direct investment.

Addressing Nigeria’s budgetary financing approach, Edun announced a significant shift in the funding structure. Previously, 80 per cent of the budget was financed domestically.

However, the government has now adopted a diversified strategy, with 40 per cent of funding sourced domestically, 40 per cent from foreign sources, and 20 per cent from other revenue streams. This adjustment, he explained, aims to enhance fiscal sustainability and create more opportunities for private sector participation in financial markets.

“This shift creates more room for the private sector to access financial markets and contribute to economic growth,” he added.

Looking ahead, he said the government remains committed to optimizing its balance sheet by leveraging public assets, promoting joint ventures, and encouraging public-private partnerships.

Edun reaffirmed that the administration’s economic strategy is centered on fostering a stable, investment-friendly environment that will propel Nigeria towards long-term prosperity.

“The government is actively implementing policies that will create a robust economic framework, allowing for sustained growth and improved living standards for Nigerians,” he said.

Finance Minister Says 4.6% GDP Growth Can’t Lift Nigerians Out Of Poverty is first published on The Whistler Newspaper