Wale Edun: Nigeria needs $20bn annually to achieve economic targets by 2027

Wale Edun, minister of finance and coordinating minister of the economy, says the country needs to invest $20 billion annually to achieve the government’s economic targets by 2027.

Edun spoke on Friday during the citizens and stakeholders engagement on the implementation of presidential priorities and ministerial deliverables for the fourth quarter (Q4) of 2024, in Abuja.

The minister said the additional $20 billion per year was required to grow the economy by an average of 6.3 percent in the medium term.

“We need significantly more growth, an additional $20 billion is the target we need for social infrastructure to facilitate logistics for agriculture,” he said.

The minister also said the government would rely primarily on increased revenue to meet the ambitious target.

He said there was a need for a robust tax revenue framework to secure the necessary funding, adding that sustainable economic growth hinged on the strategy. 

“To achieve this target and grow the economy, the government can only secure the funds from revenue,” Edun said.

“Tax revenue needs to be increased to reach the desired levels.”

He said controlling the fiscal deficit and ensuring a stable exchange rate would boost investor confidence.

According to Edun, it will lead to more business activity in the country and increased tax revenue from investments.

“Once the deficit and exchange rate are under control, it will encourage investors to come and do business in Nigeria. In turn, they will pay their taxes,” he said.

Edun further said President Bola Tinubu’s renewed hope agenda had been a huge success.

On her part, Doris Uzoka-Anite, minister of state for finance, said the federal ministry of finance, just like every other ministry, has a bilateral engagement with departments and agencies under its supervision to report the ministry’s performance quarterly.

“The two major revenue generating agencies under the supervision of the ministry are the Federal Inland Revenue Service (FIRS) and Nigeria Custom service,” Uzoka-Anite said.

“They performed above their target and this is highly commendable.”

Uzoka-Anite said all the agencies under the ministry have performed well.

N50TRN BUDGET FOR 2025

Edun said the government projects a N50 trillion budget for 2025, with N35 trillion in expected revenue, nearly doubling 2024 levels.

According to the minister, the plan is to focus on strategic investments and robust reforms.

“To achieve this goal, the government has implemented subsidy reforms, which have stabilized the macroeconomic environment, reducing the fiscal deficit to 4.4 percent and debt service-to-revenue ratio from 149 percent in 2023 to 67 percent,” Edun said.

“Foreign reserves have also grown significantly, reaching $42 billion.

“The plan focuses on several key sectors, including energy, agriculture, industry, and social protection.

“Investments in compressed natural gas, LPG, and renewable energy are accelerating, while efforts to achieve food security include large-scale farming programs.

“Nigeria is also leveraging its digital economy, with startups dominating Africa’s unicorn landscape.”

Edun said with the comprehensive plan, Nigeria is poised to achieve sustainable growth and poverty reduction, improving the quality of life for all Nigerians.