On December 30, 2024, Nigeria announced a significant $1.2 billion investment secured from the Saudi Agricultural Livestock Investment Company (SALIC) in collaboration with Olam Agri Holdings. This investment is a direct result of Nigeria's ongoing economic diplomacy, spearheaded by Finance Minister Wale Edun, who emphasized the potential for job creation and increased foreign exchange inflows as key outcomes of this engagement. Edun led a delegation to Saudi Arabia following President Bola Tinubu's discussions with Crown Prince Mohammed bin Salman, highlighting the government's proactive approach to attracting foreign investments [f5243212].
Earlier in December, Edun had reiterated the urgent need for $20 billion in annual investments to achieve a 7% economic growth rate by 2027. This was discussed during an interview on ARISE News, where he 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].
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 recent Saudi investment, combined with the proposed budget, reflects a strategic approach to addressing fiscal challenges while aiming for growth. The integration of increased oil production, enhanced revenue measures, and foreign investments 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 over half of Nigeria's population living in poverty as of 2024, the government's ability to implement these strategies effectively will be closely monitored by both domestic and international stakeholders [f5243212][964bf640][18b6d459][9a0c00e8][619ce58e][4b4c0f4c][f8ae4b88][0b782dd6][2f05dec4][31176995][599d7aa0][e02f5ee5][34e32d5e].