Nigeria targets 7% growth by 2027 to lift millions out of poverty

Nigeria’s Finance and Coordinating Minister of the Economy, Wale Edun, has said the country must accelerate its economic growth to 7 per cent annually by 2027 to lift millions of citizens out of poverty and achieve a N1 trillion economy by 2030.

“We must accelerate output to 7 per cent per annum growth by 2027, not just as an economic target, but as a moral imperative to end poverty,” Mr Edun told the Federal Executive Council (FEC) in Abuja on Thursday.

He said the reforms introduced under President Bola Tinubu’s Renewed Hope Agenda, though sometimes unpopular, were beginning to deliver measurable results across the economy.

“Our reforms under the Renewed Hope Agenda are rooted in a clear objective to build a competitive economy that attracts and creates jobs and lifts millions out of poverty,” he said.

According to the National Bureau of Statistics (NBS), Nigeria’s economy grew by 2.98 per cent in the first quarter of 2025, slightly above the 2.74 per cent recorded in the previous quarter, reflecting a modest recovery from the sluggish growth seen in 2023.

Mr Edun said growth accelerated to 4.23 per cent in the second quarter of 2025, the highest in a decade outside the post-COVID rebound. Thirteen sectors recorded growth above seven per cent, up from nine in the previous quarter, a sign of “broad-based resilience.”

He added that the industrial sector nearly doubled its growth from 3.72 per cent to 7.45 per cent, while inflation eased to 18 per cent in December. Foreign exchange reserves rose to $43 billion, and the country’s trade surplus stood at ₦7.4 trillion — clear signs, he said, of macroeconomic stability.

The minister said the government recently secured approval for a $300 million World Bank credit to support internally displaced persons and host communities in northern Nigeria, as well as $96 million in combined financing from the African Development Bank and the Islamic Development Bank for the Sokoto Health Infrastructure Project, co-funded by the state government.

He further noted that the share of income Nigerians spend on basic needs such as food, shelter and clothing had dropped from 90 per cent to about half, suggesting that the economy was gradually shifting “from subsistence towards productivity and indeed affluence.”

Mr Edun said Nigeria’s removal from the Financial Action Task Force (FATF) grey list marked a major milestone in strengthening financial integrity and investor confidence. He explained that the move restored Nigeria’s credibility in the global financial system, lowering transaction costs and enabling smoother cross-border investments.

He also pointed to the country’s recent $2.35 billion Eurobond issuance, which attracted over $13 billion in bids despite political headwinds, as evidence of renewed market confidence.

The oversubscription, he said, reflected investors’ focus on the fundamentals of Nigeria’s economy rather than its politics.

To sustain the momentum, the minister said the government would focus on mobilising domestic investment and attracting private capital to finance infrastructure and create jobs.

He urged ministers overseeing key sectors such as agriculture, mining, health, education, infrastructure and the digital economy to work with state governments to identify “investment-ready projects” that meet investor expectations.

He disclosed that the next phase of reforms would remove barriers holding back investors, including a review of tariffs and import restrictions to stimulate productivity and investment.

A review of the federation’s balance sheet, he said, was also underway to optimise asset management for inclusive growth.

Mr Edun added that fiscal reporting and expenditure frameworks were being strengthened to ensure that all Nigerians feel the gains of reforms.

He also highlighted the growing capacity of the National Identity Management Commission (NIMC), which has issued over 125 million National Identification Numbers (NINs), enabling the government to directly reach and support vulnerable citizens through digital payments.

His remarks come at a time when poverty remains widespread in Africa’s largest economy.

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According to the World Bank, about 139 million Nigerians are classified as multidimensionally poor, lacking access to essentials such as food, healthcare, education and decent housing. Soaring inflation and high living costs have deepened hardship, especially for low-income households.

President Bola Tinubu, in his remarks, said the administration remained focused on restoring investor confidence and maintaining economic stability despite political and security challenges.

“The task ahead is immense but we are resolved to move forward with unity and purpose, guided by the Renewed Hope Agenda to build a prosperous, inclusive and resilient Nigeria,” Mr Tinubu said.