Nigeria Targets 7% Economic Growth to Create Jobs and Reduce Poverty – Finance Minister
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the Federal Government is working to grow the country’s economy to 7 per cent, a level of expansion he believes will help businesses expand, create more jobs, and reduce poverty across the country.
Edun explained that the administration of President Bola Tinubu is focusing on stabilising the economy after major reforms and is now shifting attention to investment, productivity, and support for businesses.
Speaking during an interview on Politics Today on Channels Television, the minister said the government believes stronger economic growth is the most effective way to lift millions of Nigerians out of poverty.
“We need to grow the economy,” Edun said. “In order to grow the economy, we need funding.”
According to him, the government is laying the foundation for a stronger economy that will encourage investment and help businesses grow, particularly in sectors that can generate employment.
Government Targets Faster Economic Expansion
Edun said Nigeria’s economy is already showing signs of gradual improvement, but the government believes stronger growth is necessary to reduce poverty.
He explained that the country is currently approaching about four per cent economic growth, but the administration wants to push that figure significantly higher.
“We are now approaching about four per cent growth,” he said. “The target set by Mr President in the immediate term is seven per cent.”
The minister noted that achieving that level of growth would be significant because it would be higher than Nigeria’s population growth rate, which means the economy would be expanding faster than the number of people.
“That level of growth will be roughly double population growth, and that is when you begin to lift people out of poverty,” Edun explained.
The government believes that faster economic growth will allow businesses to expand operations, create new employment opportunities, and improve incomes for Nigerians.
Investment Expected to Drive Job Creation
According to Edun, attracting investment is a major priority for the government because it will help increase productivity and expand economic activity.
He said the administration is working to create an environment that encourages both local and international investors to put money into Nigeria’s economy.
“The next step, and it must come quickly and at scale, is to have investment that increases productivity, grows the economy, creates jobs and gives people income that reduces poverty,” he said.
The government believes that increased investment will allow industries to expand, strengthen infrastructure, and improve business opportunities across different sectors.
Edun noted that Nigeria’s economy is largely driven by the private sector, making support for businesses particularly important.
“Ninety per cent of the economy is private sector, and about 85 per cent of that is micro, small and medium-scale industries,” he said.
Because of this structure, the government is placing strong emphasis on policies and programmes that support small businesses and entrepreneurs.
Support for Businesses at the Grassroots
Edun said the government is expanding programmes designed to support businesses and economic activities at the grassroots level.
One of these initiatives is the Renewed Hope Ward Development Programme, which aims to provide financial support and business assistance in communities across the country.
“There is a focus on the Renewed Hope Ward Development Programme to push assistance down to the grassroots in all the 8,809 wards,” he said.
According to the minister, the programme is intended to provide financing, knowledge, and resources that can help businesses grow within local communities.
“The aim is to provide financing and know-how so productivity can increase at that level,” Edun explained.
The government believes that strengthening economic activity at the grassroots level will help increase productivity and support local economies.
Social Support Reaching Millions of Nigerians
While the government focuses on economic growth, Edun also highlighted social protection programmes that are currently supporting millions of Nigerians.
According to him, the administration has implemented a programme that provides direct payments to vulnerable households across the country.
“We have a social protection programme that has served about 10 million households — about 50 million Nigerians — with direct payments,” he said.
These payments are intended to provide relief to vulnerable citizens while broader economic reforms begin to take effect.
The government has also adopted digital tools to ensure that the support reaches the intended beneficiaries.
“At any given time, when you can biometrically and uniquely identify an individual and make funding available to them through digital payment, you have the beginnings of being able to help citizens in the way modern societies do,” Edun said.
He explained that biometric identification and digital payment systems are helping the government target the poorest and most vulnerable citizens more effectively.
Economic Reforms Aimed at Stabilising the Economy
Edun said the government has already implemented major reforms designed to stabilise Nigeria’s economy and correct long-standing distortions.
Among the most significant changes were adjustments to the pricing of foreign exchange and petroleum products.
“We have removed the major distortions, which President Tinubu has bravely and courageously done — market pricing of foreign exchange, market pricing of petroleum products,” he said.
According to the minister, these reforms are helping to restore stability and improve confidence in the Nigerian economy.
“These steps are stabilising the economy, bringing down inflation, building reserves and setting the stage for the next step,” Edun explained.
He said the government now plans to focus on attracting investment and expanding economic activity.
Technology to Improve Government Revenue
Another major area of focus for the government is increasing public revenue in order to finance infrastructure and economic development.
Edun said technology will play a critical role in improving how the government collects and manages revenue.
“We really need to use automation, digitisation, even AI and other technology, to increase government revenue,” he said.
According to him, improved tax administration and digital systems will help the government generate more revenue without placing excessive burden on citizens.
The minister also welcomed the expected addition of tax reform expert Taiwo Oyedele into the government’s economic management team.
“That is his training, that is his background, and that is the most recent task that the government has given him,” Edun said.
He expressed confidence that the tax expert would help strengthen Nigeria’s fiscal policies and improve revenue generation.
Efforts to Ease the Cost of Living
Edun acknowledged that many Nigerians are still facing economic difficulties despite improvements in macroeconomic indicators.
However, he said the government has introduced several initiatives aimed at easing the cost of living.
“We all know that food prices are down,” he said.
He also highlighted the Compressed Natural Gas (CNG) initiative, which the government believes will reduce the cost of transportation and fuel for many Nigerians.
“With the CNG initiative, the cost of fuelling people’s cars is down,” Edun said.
Students have also benefited from government programmes that help cover education expenses.
“Students now have help with funding their fees and living costs,” he added.
The government believes that these initiatives will gradually reduce financial pressure on households.
Managing Debt and Economic Challenges
Despite the government’s optimism about economic recovery, Edun acknowledged that Nigeria continues to face serious financial challenges.
One of the major issues is the country’s large debt service obligations.
“We are coping with a huge debt service burden which we inherited,” he said.
The minister explained that the government also had to address significant fiscal adjustments, including the regularisation of ways and means financing.
“We had to incorporate about N30 trillion that came from the regularisation of ways and means financing,” he said.
Exchange rate changes have also increased the value of some debt obligations in naira terms.
“In addition, exchange rate adjustments added another significant burden in naira terms,” Edun explained.
Despite these challenges, he said the government believes the economy is gradually improving.
“We are on our way out of the woods,” he said.
Global Tensions and Economic Risks
Edun also expressed concern about global geopolitical tensions, particularly the escalating crisis in the Middle East.
According to him, instability in major oil-producing regions could affect global energy markets and indirectly impact Nigeria’s economy.
“I think everyone must be concerned about the geopolitics going on now,” he said.
The minister noted that several of the world’s largest oil producers are located in the Middle East corridor.
“When that region sneezes, it affects the rest of the world,” he said.
Countries such as Iran, Iraq, Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar play major roles in global energy production.
However, Edun said Nigeria’s growing refining capacity could help strengthen the country’s economic resilience.
“It is important that at this time we have the capacity to refine crude into petroleum products,” he said.
According to him, investments in refining by the private sector are helping ensure that petroleum products remain available in Nigeria.
“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.”
