The Coordinating Minister of the Economy and Minister of Finance, Wale Edun, has shared that the 2025 budget has been designed to attract private investors and stimulate the country's economic growth. In his statement, Edun emphasized that President Bola Tinubu’s administration aims to exceed the budget’s annual growth target of 4.6 percent. He expressed confidence in the government's ability to manage the ₦49.7 trillion budget without significant challenges.
Speaking during an interview with Arise TV on Friday, Edun explained that the government is optimistic about funding the budget, citing the $20 billion in savings resulting from the removal of the petrol subsidy. This resource, he said, would significantly aid in the budget's successful implementation.
He added, "The budget is a statement of intent, and as I said earlier, the commitment is not only to meet the budget target of 4.6 percent growth per annum. The target that we are saying will take us to where we need to get to and where President Bola Tinubu is committed to taking us is actually 5.5 percent. So we not only have to implement the budget, but we also have to crowd in a lot of private sector investment to ensure that we grow the economy at the rate at which we need."
[/p]Edun also pointed out that the preparation of the medium-term economic framework and the efforts of the economic management team would ensure the diligent execution of the budget. He stressed the importance of revenue in the budgeting process, noting that Nigeria’s revenue is on the rise due to the successful reduction of financial hemorrhaging under President Tinubu’s leadership.
"The President has stopped the loss of 5 percent of GDP worth 15 to 20 billion dollars a year, and that will just be accruing and growing and available to help implement the budgets, the medium-term economic expenditure framework, and indeed the planned strategies and programs of the government of President Bola Tinubu,” Edun said.
Addressing concerns about the government's borrowing, Edun clarified that the administration is prioritizing affordable and secure loans. He highlighted the strong confidence private investors have in the President’s economic policies, pointing to the successful $9.1 billion raised through dollar bonds in a single day as a testament to this trust.
Edun emphasized that while the administration is committed to reducing Nigeria’s debt burden, it is also focused on securing the safest loan options. He added, "If you go to the 2025 budget proposal, you see a line there that says privatization. That’s a catch-all phrase for crowding in the private sector, whether it’s with concessions, whether it’s through private-public partnerships, or whether it’s through adjusting the equity investment in joint ventures. So that is right there. In addition, the commitment is to the private sector."
He went on to explain that the government is doing everything possible to encourage private sector investment in the economy, as that is where the significant funds are available. "As for borrowing, you start with the cheapest type of borrowing. That is concessional finance. We are an IDA country. Our aim is to get out of it, but the International Development Association funding of the World Bank is virtually free, 1% over 40 years. We have taken that, we have earned that, and we’ve got the encouragement and support for the President’s programs for the macroeconomic reforms by having a full support, $1.5 billion this year from the World Bank," he explained.
Further discussing the international capital markets, Edun shared how Nigeria successfully raised funds from these markets. "In addition, you take other bilateral funding that’s available, but when you do go to the international capital market and they support you, as they did Nigeria, where we just sought to finish our borrowing program for the year, having taken advantage of the cheapest sources of funds, we now went to the open market. We asked for $2.2 billion. We started at 9 a.m. in London, offices of the investment bankers. By 12 we had $4 billion. By 4 p.m. we had $9.1 billion. It’s a sign of confidence. It’s a sign of the trust and belief in the macroeconomic reforms and strategies of the government. It was a good day for Nigeria," Edun stated.
