Nigeria plans to increase its GDP growth to 7% by 2025 through higher oil production and greater private sector participation. The strategy includes addressing infrastructural deficits and improving the investment climate. Current economic growth remains below optimal levels, prompting the need for substantial reforms.
Nigeria is setting an ambitious target of doubling its GDP growth to approximately 7% by the year 2025, primarily through increased oil production and enhanced private sector involvement. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, emphasized that achieving this growth rate is crucial for lifting citizens above the poverty line. The country anticipates acceleration in revenue growth, improved oil output, continuation of subsidy savings, and a more favorable business environment to realize this goal.
In the current year, Nigeria aims to enhance its oil production beyond 2 million barrels per day. Recent reports indicate that the country has already surpassed its OPEC+ production quota of 1.5 million barrels, exceeding it by over 70,000 barrels per day in February. As petrodollars represent the primary foreign exchange earner for Nigeria, bolstering production is expected to significantly positively impact the economy and raise the nation’s per capita income.
Recent statistics reveal that Nigeria’s GDP growth reached 3.8% in the last quarter of the previous year, marking an increase from 3.46% in the preceding quarter. Throughout 2024, GDP growth is projected at 3.40%, up from 2.74% in 2023, illustrating a gradual recovery from various challenges, including the effects of the COVID-19 pandemic and fluctuations in global commodity prices.
With a population exceeding 220 million, a GDP growth rate of less than 4% is deemed suboptimal for Nigeria. Thus, targeting a 7% growth rate may be essential for revitalizing the economy. Edun indicated that one approach to stimulating growth involves actively engaging the private sector to address the infrastructural inadequacies that deter foreign investment.
The Minister reassured that the government is eliminating existing barriers to private sector investments and addressing bureaucratic delays that hinder investor confidence. He highlighted improvements in the investment climate, particularly noting the Dangote refinery, which is expected to achieve an optimal output of 650,000 barrels per day.
In summary, Nigeria is striving to achieve a GDP growth of 7% by 2025 through enhanced oil production and increased involvement from the private sector. Minister Edun’s strategy includes resolving infrastructural deficits and improving the investment climate. While current GDP growth is modest, the government is optimistic that targeted actions will foster economic recovery and elevate living standards for citizens.
Original Source: businessday.ng
