Nigeria’s government is shifting its economic strategy toward private sector-led growth, as it targets a 7% annual GDP expansion far exceeding the projected 4.6% for 2025.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the critical role of private investment in bridging the country’s infrastructure gap and accelerating economic transformation. 

Speaking at the Arise/KPMG Budget Day, Edun stated that while the government’s projection aligns with broader macroeconomic trends, its ambition is to push for higher growth to significantly reduce poverty.

A key aspect of Nigeria’s economic plan is leveraging private sector capital to address the country’s estimated $100 billion annual infrastructure deficit. Edun highlighted ongoing public-private partnerships (PPPs) as a model for achieving this, citing projects like the Benin-Asaba Highway and Lagos-Abeokuta Road, which are expected to cut travel times by 75% and boost economic productivity.

“It is not the government budget that will fund, for example, the infrastructure deficit. The plan, the commitment of Mr. President and his policy is to crowd the private sector,” Edun stated.

By removing bureaucratic bottlenecks and fostering a business-friendly environment, the government aims to attract local and foreign investors to drive economic expansion.

Beyond infrastructure, Edun noted that Nigeria’s external sector is showing positive momentum. The country now boasts a trade surplus equivalent to 13% of GDP, foreign reserves exceeding $40 billion, and a more stable exchange rate. These developments, he said, reflect coordinated efforts by the Central Bank of Nigeria and other stakeholders to strengthen the economy.

Edun also revealed a major shift in Nigeria’s budget funding approach, reducing reliance on domestic borrowing from 80% to 40%, while incorporating 40% foreign funding and 20% from other sources. This, he explained, would open financial markets for private sector participation, ensuring sustainable economic growth.

Since taking office, the government has implemented key reforms, including the removal of fuel subsidies and the adoption of market-driven pricing mechanisms for petroleum products and foreign exchange. These measures, Edun noted, have not only stabilized the economy but also reclaimed 5% of GDP previously lost to inefficiencies.

As Nigeria pushes toward its 7% GDP growth target, the administration is banking on an improved business climate, stronger private sector participation, and sustained macroeconomic reforms to drive long-term prosperity.