…Targets 7% GDP growth
The Federal Government has cleared more than N2 trillion in outstanding capital budget commitments from the 2024 fiscal year, leaving no pending obligations unprocessed.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Thursday at a ministerial press briefing in Abuja.
“In the last quarter, we paid contractors over N2 trillion to settle outstanding capital budget obligations from last year,” he said. “At present, there are no pending commitments that are not being processed and financed. The focus will now shift to capital releases for 2025.”
Edun noted that a critical round of stakeholder consultations is under way to reinforce orderliness and efficiency in public procurement, stressing that despite budgetary appropriation, ministries and agencies should only enter binding commitments once funds are authorised and available for spending.
The Minister also confirmed that the Federal Government has been making regular repayments of past deductions to the Federation Account, settling funds legitimately owed to subnational governments. He explained that this has significantly strengthened the fiscal position of states across the country.
“Since the first half of 2023, the combined fiscal balance of the states has grown from 1.8 per cent of GDP to 3.1 per cent, that is, from N2.8 trillion to N7.1 trillion, resulting in a surplus,” he said. “This additional funding gives states greater capacity to invest, and from an economic standpoint, their increased spending has largely gone into capital projects.”
Reaffirming the administration’s economic vision, Edun said the Federal Government’s medium-term objective remains to achieve 7 per cent annual GDP growth, driven by critical public investments, robust private sector participation, job creation, and higher incomes.
“To realise this, we are seeking to attract private sector investments and expand public–private partnerships across agriculture, education, health, manufacturing, and technology,” he stated.
He outlined fiscal stability targets that include a fiscal deficit of 3.5 per cent of GDP, revenue-to-GDP ratio of less than 50 per cent, debt-to-GDP ratio of 60 per cent, and tax revenue at 18 per cent of GDP.
According to Edun, the government’s economic strategy is anchored on two interrelated goals: achieving a stable macroeconomic environment in which private sector investments can thrive across all sectors, and building stronger public savings to fund critical investments in education, health, infrastructure, and agriculture, which he described as the foundational pillar for rapid, sustained, and inclusive growth.
Despite global economic headwinds, Edun said Nigeria is diversifying its exports. “We have a competitive exchange rate and other favourable conditions that allow us to broaden our export base, particularly under the African Continental Free Trade Agreement,” he noted.
