FG Targets 23% GDP Revenue, Assures Investors
By Patience Ikpeme
The Nigerian government has set an ambitious target of increasing its revenue to 23% of the Gross Domestic Product (GDP).
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with foreign investors on the sidelines of the Annual Meetings of the IMF and World Bank.
Edun expressed the government’s commitment to resetting the macroeconomic framework and achieving sustained economic growth.
He highlighted the positive impact of recent reforms and policies, including the reduction of debt servicing costs from nearly 100% of revenue to around 60% in the first half of the year.
The Minister also mentioned the government’s efforts to reduce the budget deficit from 6.5% of GDP to 4.4%, with a target of 4% for 2024.
The Director-General of the Budget Office of the Federation, Tanimu Yakubu, reported significant progress in revenue performance, with actual revenue reaching N12.6 trillion in August, compared to a pro-rata budget projection of N13.1 trillion. This represents a deficit of N500 billion, which is a significant improvement.
The government’s focus on revenue mobilization and fiscal discipline is seen as a crucial step towards achieving economic stability and sustainable development. By increasing revenue and reducing expenditure, the government aims to create a conducive environment for investment and job creation.
