Nigeria will need to invest about $20 billion in her economy to achieve her economic target by 2027, Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun disclosed on Friday.
He said this during the Citizens and Stakeholders Engagement on the Implementation of Presidential Priorities and Ministerial Deliverables for the Fourth Quarter of 2024, held in Abuja.
Mr Edun noted the urgency of the investment, stressing its role in driving economic growth and facilitating infrastructural development. According to him, an additional $20 billion per year is required to grow the economy by an average of 6.3 per cent in the medium term.
“We need significantly more growth,” Edun stated. “An additional $20 billion is the target we need for social infrastructure to facilitate logistics for agriculture.”
The minister pointed out that the government would rely primarily on increased revenue to meet this ambitious target. He stressed the need for a robust tax revenue framework to secure the necessary funding, underscoring that sustainable economic growth hinges on this strategy.
“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,” he explained.
Edun also linked fiscal discipline and exchange rate stability to Nigeria’s ability to attract foreign investment. He noted that controlling the fiscal deficit and ensuring a stable exchange rate would boost investor confidence, leading to more business activity in the country and increased tax revenue from those investments.
“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,” Edun said.
Earlier in her address, the Minister of State for Finance, Dr Doris Uzoka-Anite, noted the achievements of the two major revenue-generating agencies under the Ministry’s supervision—the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS).
Both agencies she said exceeded their revenue targets for the second and third quarters of 2024.
The FIRS, which had a quarterly revenue target of N4.82 trillion for both Q2 and Q3 2024, surpassed expectations by generating N5.43 trillion in Q2 and N6.43 trillion in Q3. Similarly, the Nigerian Customs Service outperformed its targets of N1.27 trillion and N1.3 trillion for Q2 and Q3, respectively, by collecting N1.39 trillion in Q2 and N1.57 trillion in Q3.
Dr. Uzoka-Anite stated that these figures are a testament to the Ministry’s commitment to ensuring the effective and efficient implementation of its assigned mandates. She pointed out that the Federal Ministry of Finance will continue to prioritize excellence in delivering on its ministerial responsibilities.
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