Nigeria’s Strategy to Achieve 7% GDP Growth by 2025

Nigeria aims to increase GDP growth to 7% by 2025 through higher oil production and private sector involvement. Finance Minister Wale Edun outlined strategies including reducing subsidies and improving the business climate. Current growth rates, while recovering, are deemed insufficient for the population size, prompting the need for ambitious economic reforms.

Nigeria is targeting to double its GDP growth to 7% by 2025, driven by increased oil production and enhanced private sector engagement. Wale Edun, the Minister of Finance, emphasized that achieving this growth rate will significantly improve living standards and alleviate poverty. The nation’s strategy includes boosting oil output, reducing subsidies, and improving the business environment, as announced on national television.

The government plans to increase oil production to over 2 million barrels per day, with encouraging signs from a recent Reuters survey indicating that Nigeria surpassed its OPEC+ quota by over 70,000 barrels per day in February. Higher oil production is expected to enhance the economy and increase per capita income, as petrodollars become Nigeria’s main source of foreign exchange.

According to the National Bureau of Statistics, Nigeria’s GDP growth reached 3.8% in the last quarter of 2022, reflecting an uptick from the previous quarter’s 3.46%. The GDP growth forecast for 2024 is 3.40%, a recovery from the prior year’s 2.74%, indicating resilience against the challenges posed by the COVID-19 pandemic and global economic factors.

Despite this growth, the current GDP below 4% is regarded as “suboptimal” for a nation of over 220 million people. Edun asserts that achieving the 7% target is essential for transforming Nigeria’s economic landscape and addressing infrastructural deficits that deter investment.

The government is committed to resolving bureaucratic obstacles that undermine private sector investment, which Edun highlighted as crucial for enhancing investor confidence. Additionally, he pointed to the Dangote refinery, expected to achieve optimal output of 650,000 barrels per day, as a significant contributor to improving the investment climate.

In summary, Nigeria’s ambitious plan to raise its GDP growth to 7% by 2025 encapsulates a strong focus on bolstering oil production and fostering private sector participation. By addressing infrastructural deficiencies and enhancing the business atmosphere, there are optimistic expectations for improved living standards. The commitment from the government, particularly in streamlining investment processes, could usher in a new economic era for Nigeria.

Original Source: businessday.ng