The Federal Government is positioning the economy for a rapid expansion to seven percent annual growth, a rate that Finance Minister and Coordinating Minister of the Economy Wale Edun says would significantly outpace population increase and begin to lift millions of Nigerians out of poverty. Speaking on Channels Television’s Politics Today programme, Edun outlined the administration’s strategy to transition from macroeconomic stabilisation to productivity-led growth, anchored by ongoing reforms and a renewed focus on attracting investment.
Edun noted that the economy is currently growing at approximately four percent. “The target set by Mr President in the immediate term is seven percent,” he stated. “That level of growth will be roughly double population growth, and that is when you begin to lift people out of poverty”. The ambition aligns with broader objectives outlined in the newly unveiled Renewed Hope National Development Plan (2026–2030), which prioritises economic diversification, human capital development, and private sector-led growth to build a $1 trillion economy by 2030.
Deepening Reforms and Fiscal Strategy
The minister attributed the platform for this growth to foundational reforms already implemented, including the market pricing of foreign exchange and petroleum products. “We have removed the major distortions, which President Tinubu has bravely and courageously done,” Edun said. “These steps are stabilising the economy, bringing down inflation, building reserves and setting the stage for the next step”.
He emphasised that the next phase requires large-scale investment to boost productivity and create jobs. To finance critical infrastructure and stimulate growth, the government is focused on expanding revenue, particularly through automation, digitisation, and the application of technology, including artificial intelligence. Edun welcomed the anticipated addition of tax reform expert Taiwo Oyedele to the economic management team, pending Senate screening, highlighting his expertise as critical for strengthening fiscal policy.
Social Protection and Grassroots Impact
Acknowledging that macroeconomic gains have yet to be universally felt, Edun pointed to existing social protection programmes designed to cushion the impact of reforms on vulnerable populations. He noted that direct payments, enabled by biometric identification and digital technology, have reached approximately 10 million households, or about 50 million Nigerians. Programmes like the Renewed Hope Ward Development Project aim to push assistance to the grassroots across all 8,809 wards, providing financing and know-how to increase productivity at the local level.
The minister also highlighted interventions aimed at easing the cost of living, including the Compressed Natural Gas initiative, which he said has reduced fuelling costs for citizens, and student loan schemes to support education. He acknowledged the concerns of Nigerians who feel the gains are not yet tangible but stressed that lower inflation translates to a cheaper cost of living over time.
Acknowledging Challenges and External Risks
Edun conceded that the administration inherited a difficult economic situation, including the need to regularise approximately N30 trillion in ways and means financing, as well as significant exchange rate adjustment burdens. He noted that the government is coping with a “huge debt service burden” but expressed optimism about the trajectory. “We are on our way out of the woods. As the President says, we can see the light at the end of the tunnel as long as we stay the course”.
He also flagged external risks, particularly the escalating conflict in the Middle East, warning that disruptions in major energy-producing nations could impact global markets and, by extension, Nigeria’s oil-dependent economy. However, he pointed to growing domestic refining capacity as a source of resilience. “We should be thankful for the investment by the private sector in refining because it helps keep petroleum products flowing and keeps the wheels of the economy turning”.
The push for seven percent growth comes as the World Bank, in its October 2025 Nigeria Development Update, noted that while Nigeria has made notable progress in macroeconomic stabilisation, these gains have yet to substantially improve livelihoods, with food inflation and poverty remaining high. Achieving the ambitious growth target will depend on sustaining reforms, improving the efficiency of public spending, and expanding social protection to ensure the benefits of growth reach the poorest households.
