Nigeria’s Economic Ambition: Doubling GDP Growth to 7% by 2025
Nigeria aims for a 7% GDP growth by 2025, leveraging increased oil production and private sector involvement. Finance Minister Wale Edun highlights strategies to enhance revenue, boost oil output, and facilitate a favorable business climate, addressing previous economic challenges.
Nigeria is striving to enhance its economic performance by targeting a GDP growth rate of 7% by 2025. This growth is anticipated to be supported by increased oil production and heightened participation from the private sector, following a prolonged period of subpar growth below 3% that has adversely affected citizens’ quality of life. Finance Minister Wale Edun asserted, “Our ambition is to as soon as possible get to about 7 percent per annum GDP growth because it is at that level you begin to lift people out of poverty.”
The projections for 2025 anticipate a surge in revenue growth, escalated oil output, continuous savings from subsidy non-expenditure, and improved business conditions that could enable Nigeria to achieve this objective, as noted by Mr. Edun in a recent national television broadcast. The government intends to increase its oil production to over 2 million barrels per day this year, with recent data indicating that Nigeria surpassed its OPEC+ quota by over 70,000 barrels per day in February.
As Nigeria’s primary foreign exchange earner, enhanced oil production is expected to significantly uplift the economy and elevate the country’s per capita income. According to reports from the National Bureau of Statistics, Nigeria’s GDP grew by 3.8% for the quarter ending December, a rise from the previous quarter’s 3.46%. In 2024, GDP growth is projected at 3.40%, rebounding from the challenges of prior years, such as the pandemic and commodity price volatility.
Despite these improvements, a GDP growth rate of less than 4% remains “suboptimal” for a nation with over 220 million inhabitants. Minister Edun remarked that achieving the 7% target is imperative for revitalizing Nigeria’s stale economic conditions. He emphasized the need to engage the private sector to address the infrastructural deficits deterring investment in the country.
Furthermore, Mr. Edun highlighted the government’s efforts to eliminate barriers hampering private sector investment and improve the overall investment climate. He reaffirmed that measures are being undertaken to mitigate bureaucratic hurdles and enhance investor confidence, citing the Dangote refinery’s local refining capacity, which aims to produce 650,000 barrels daily at full capacity.
In summary, Nigeria’s aspiration to achieve a GDP growth rate of 7% by 2025 hinges on increased oil production and private sector engagement. The government is implementing measures to foster an improved business environment and mitigate existing investment barriers. The successful execution of these initiatives could significantly elevate the nation’s economic standing and improve living standards for its citizens.
Original Source: businessday.ng
