On December 21, 2024, Wale Edun, Nigeria's Minister of Finance, reiterated the urgent need for $20 billion in annual investments to achieve a 7% economic growth rate by 2027. This announcement was made during an interview on ARISE News, where Edun outlined the government's Medium Term Expenditure Framework, which aims for substantial investments from 2025 to 2027. He emphasized that increased revenue and investment are critical for Nigeria's economic recovery and growth [be7db48f].
The proposed budget for 2025, presented to the House Committee on National Planning and Economic Development, anticipates new borrowings of approximately 9.3 trillion naira, with a projected debt service of 2 trillion naira. Edun highlighted several positive economic indicators, including a modest GDP growth of 3.46% in Q3 2024, although the overall GDP has seen a decline from $362.81 billion in 2023 to $252.74 billion in 2024, pushing Nigeria down to the fourth largest economy in Africa [4794acac].
A significant aspect of the government's strategy includes a presidential initiative aimed at producing 70% of Nigeria's pharmaceutical needs domestically by 2030, which is part of a broader effort to enhance local production capabilities and reduce reliance on imports. Additionally, Edun mentioned a $5 billion investment pipeline in the healthcare sector, reflecting the government's commitment to improving health services and infrastructure [be7db48f].
The focus on oil production remains a key aspect of the budget, as Nigeria aims to upscale its output to shore up revenue. This aligns with President Bola Tinubu's broader vision of achieving a $1 trillion economy by 2030, which has been met with skepticism given the current economic realities. The Minister's emphasis on oil production as a revenue driver reflects the ongoing reliance on the oil sector, which has historically been a cornerstone of Nigeria's economy.
During the budget session, Hon. James Abiodun Faleke stressed the importance of revenue performance reports from Ministries, Departments, and Agencies (MDAs) for 2024, underscoring the government's commitment to improving fiscal management. Furthermore, the Central Bank of Nigeria (CBN) has introduced measures allowing Bureau de Change operators to access $25,000 weekly from the Nigerian Foreign Exchange Market from December 19, 2024, to January 30, 2025, indicating a proactive approach to stabilizing the currency [be7db48f].
As Nigeria navigates its economic landscape, the proposed budget reflects a strategic approach to addressing fiscal challenges while aiming for growth. The integration of increased oil production and enhanced revenue measures will be critical in determining the success of the 2025 budget and its alignment with the long-term economic goals set by the Tinubu administration. With the backdrop of a struggling economy, the government's ability to implement these strategies effectively will be closely monitored by both domestic and international stakeholders [964bf640][18b6d459][9a0c00e8][619ce58e][4b4c0f4c][f8ae4b88][0b782dd6][2f05dec4][31176995][599d7aa0][e02f5ee5][34e32d5e].