Nigeria intends to double its GDP growth to 7% by 2025 by increasing oil production and engaging the private sector. This follows years of low growth, which has affected living standards. The government plans to enhance revenue sources, improve the business climate, and eliminate barriers to private investment to achieve this goal.
Nigeria is striving to achieve a GDP growth rate of 7% by 2025, primarily driven by an increase in oil production and enhanced private sector engagement. This objective follows years of subpar economic growth below 3%, which has adversely affected the living standards of its citizens. Finance Minister Wale Edun expressed that reaching a 7% growth rate would be crucial for alleviating poverty within the nation.
The Nigerian government anticipates significant revenue growth for 2025, fueled by higher oil production, the cessation of subsidies, and improved business conditions. The minister disclosed this ambitious goal during a national television broadcast. Nigeria plans to escalate its oil production to over 2 million barrels per day this year; recent data indicated the country exceeded its OPEC+ production quota.
Petroleum revenues are essential for Nigeria’s foreign exchange earnings. An uptick in oil production is expected to bolster the economy and enhance the per capita income of its citizens. As per data from the National Bureau of Statistics, Nigeria’s GDP grew by 3.8% annually in the last quarter of 2022, demonstrating a recovery from recent economic difficulties, including the COVID-19 pandemic.
Despite this growth, a GDP below 4% is deemed inadequate for a country with a population exceeding 220 million. The proposed target of 7% is viewed as a critical catalyst for transforming the economy. Edun stressed the importance of attracting private sector investment to address infrastructure deficits, which currently detract from the nation’s appeal to investors.
To facilitate this, the government is actively removing obstacles that impede private sector investment. Edun emphasized enhancements in the investment climate, citing the Dangote refinery’s local capacity to produce 650,000 barrels per day once fully operational, as a vital element in bolstering the economy.
In conclusion, Nigeria’s ambitious target of achieving a 7% GDP growth by 2025 hinges on increased oil production and the active participation of the private sector. This growth is imperative for improving the living standards of its citizens. Through addressing infrastructure deficits and streamlining investment processes, the government aims to make Nigeria a more appealing destination for investment, ultimately revitalizing its economy and lifting millions out of poverty.
Original Source: businessday.ng
