Nigeria Targets 7% Growth with Reforms, Aims to Attract Investments Amid Economic Challenges

Nigeria is setting ambitious economic goals, targeting a 7% annual growth rate to lift millions of citizens out of poverty, according to Wale Edun, the country’s Finance Minister and Coordinating Minister of the Economy. Speaking at an investor presentation at the IMF headquarters, Edun emphasized that the government is focused on maintaining its recent growth momentum, which has been the fastest in years. He highlighted the removal of fuel subsidies and the implementation of market-based petrol pricing as key reforms essential to sustaining this growth trajectory.

The Nigerian economy showed signs of resilience in 2024, with a notable acceleration in growth to 3.84% in the fourth quarter, marking its strongest performance in three years. Despite ongoing challenges, such as the global decline in oil demand, Edun expressed confidence that these reforms, along with a strategic focus on asset optimization and cutting government borrowing, will lay a solid foundation for sustained growth and investment attraction.

On the monetary front, Edun underscored the importance of achieving price stability and controlling inflation, which has been a persistent challenge for the country. The Central Bank of Nigeria has worked to stabilize the naira, reducing the gap between official and black market exchange rates to just 4%. This has led to an improvement in foreign exchange flows, a positive sign for the nation’s broader economic stability.

However, Nigeria faces external pressures, including the IMF’s forecast that inflation could average 26.5% in 2025, with further increases to 37% by 2026. The IMF also raised concerns about the country’s oil revenue decline, which presents risks to government finances and sovereign credit. In response, Edun confirmed that the government would prioritize statutory payments while focusing on measures to optimize state assets and reduce the fiscal deficit.

Source: Business day