Nigeria aims to double its GDP growth to 7% by 2025, leveraging increased oil production and private sector involvement. Wale Edun, the finance minister, highlights that enhanced revenue, oil output, and improved business conditions are critical in achieving this goal. Despite recent growth recovery, the current GDP remains below optimal levels, emphasizing the need for strategic economic reforms.
Nigeria aims to elevate its economy to a remarkable 7 percent GDP growth by 2025, driven by increased oil production and enhanced private sector engagement. This target comes after years of stagnation, with growth rates remaining below 3 percent, adversely affecting the living standards of its citizens. Wale Edun, the finance minister, emphasized that reaching this growth rate is crucial for alleviating poverty within the nation.
In achieving this ambitious goal, Nigeria anticipates stronger revenue growth, heightened oil production, continued savings from subsidy cuts, and improved business conditions. Edun announced these expectations during a recent national television broadcast, indicating a strategic shift in economic policy. The government is targeting production beyond 2 million barrels per day, as Nigeria’s output recently surpassed the OPEC+ quota, indicating potential for growth.
Petrodollars remain Nigeria’s primary foreign exchange earner, and enhancing oil production is expected to considerably uplift the economy and increase per capita income. Recent data from the National Bureau of Statistics shows that GDP rose by 3.8 percent in the last quarter of the previous year, albeit below the optimal 4 percent level needed for a country of over 220 million people.
To stimulate growth, Edun remarked on the necessity of attracting private sector investments to address the significant infrastructural deficits hindering Nigeria’s economic advancement. He assured that the government is actively resolving bureaucratic obstacles that sour investor sentiment, with a focus on providing a conducive investment climate. Notably, the Dangote refinery is projected to enhance local refining capacity significantly, producing up to 650,000 barrels per day once operational at maximum capacity.
In conclusion, Nigeria’s ambition to achieve 7 percent GDP growth by 2025 hinges on a multi-faceted strategy, including increased oil production and greater private sector involvement. By addressing infrastructural challenges and enhancing the investment climate, the government aims to reposition the economy towards sustainable growth, ultimately improving the living standards of its citizens. The commitment to eradicate poverty while fostering economic recovery offers a promising outlook for the nation despite previous growth limitations.
Original Source: businessday.ng
