The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that Nigeria will require an annual investment of $20bn to achieve its economic growth targets by 2027.
This information was revealed on Friday during the Citizens and Stakeholders Engagement on the Implementation of Presidential Priorities and Ministerial Deliverables for the fourth quarter of 2024.
Edun emphasised the importance of this investment and its vital role in promoting infrastructure development and economic growth. He clarified that the goal is required to have a medium-term average growth rate of 6.3%.
“We need significantly more growth. An additional $20bn is the target we need for social infrastructure to facilitate logistics for agriculture,” Edun stated.
The minister emphasised that the key source of funding for this ambitious investment would be higher government revenue, particularly through a stronger tax revenue framework.
He emphasised that Nigeria’s ability to increase tax revenue and successfully manage its fiscal commitments is critical to long-term economic growth.
“To achieve this target and grow the economy, the government can only secure the funds from revenue. Tax revenue needs to be increased to reach the desired levels,” Edun explained.
Edun also addressed the importance of fiscal discipline and exchange rate stability in attracting foreign investment.
He noted that reducing the fiscal deficit and maintaining a stable exchange rate are crucial for fostering an environment where investors feel confident doing business in Nigeria.
This, in turn, would lead to increased economic activity and higher tax revenues.
“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.
The minister underscored the role of investment in social and physical infrastructure, particularly in supporting sectors like agriculture. Improved logistics and infrastructure are essential for boosting productivity and ensuring sustainable growth.
Edun’s call for $20bn annually reflects the government’s recognition of the substantial resources needed to transform the economy and meet its development goals by 2027.
The emphasis on revenue generation, fiscal discipline and investor-friendly policies represent a comprehensive approach to ensuring economic stability and growth.