FG sets $20bn target annually to achieve economic growth by 2027
By Patience Ikpeme
The federal government has made it known that for its economic targets to be achieved, an annual investment of $20billion should be made between now and 2027.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during the Citizens and Stakeholders Engagement on Friday in Abuja.
Mr. Edun emphasized the urgent need for investment to spur economic growth and infrastructure development. He stated that an additional $20 billion annually is essential to achieve a 6.3% average growth rate in the medium term.
“We need significantly more growth,” he asserted, highlighting that this funding is crucial for enhancing social infrastructure to support agricultural logistics. Edun noted that increased government revenue will be pivotal in reaching this target, advocating for a strong tax framework as vital for sustainable economic progress.
“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 connected Nigeria’s capacity to attract foreign investment with fiscal discipline and exchange rate stability. He indicated that managing the fiscal deficit and maintaining a stable exchange rate would enhance investor confidence, leading to increased business activity and tax revenue.
The Minister stated that 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.
In her welcome remarks, Minister of State for Finance Dr. Doris Uzoka Anite highlighted the commendable performance of all agencies under the Ministry. Notably, the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service exceeded their revenue targets in the second and third quarters of 2024.
“FIRS achieved a quarterly target of 4.82 trillion Naira, generating 5.43 trillion Naira in Q2 and 6.43 trillion Naira in Q3. Similarly, the Nigerian Customs Service surpassed its targets of 1.27 trillion Naira and 1.3 trillion Naira, collecting 1.39 trillion Naira and 1.57 trillion Naira in those quarters, respectively”. She stated.
Dr. Anite affirmed that the Federal Ministry of Finance is committed to effectively implementing its ministerial deliverables, as evidenced by these impressive statistics from the two agencies.
