President Bola Tinubu has set an ambitious goal for Nigeria’s economy, targeting 7% annual growth by 2027 and aiming to quadruple the nation’s GDP by 2030 in a bid to lift millions out of poverty.
Speaking at Wednesday’s federal cabinet meeting in Abuja, Tinubu said the reforms implemented since his assumption of office in 2023 — including the removal of petrol and electricity subsidies and two currency devaluations — had strengthened macroeconomic stability and boosted investor confidence. However, he acknowledged that these measures had also triggered the most severe cost-of-living crisis in decades, while growth remains sluggish.
Nigeria’s GDP grew 3.13% in the first quarter of 2025, following a rebasing that valued the economy at ₦372.82 trillion ($243.55 billion). Despite the increase in size, growth fell short of expectations. Public investment stands at only 5% of GDP, a level Tinubu identified as a key obstacle to faster expansion.
“To sustain our momentum, we must optimise every available naira,” Tinubu said, instructing his economic team to review revenue retention and deductions from the federal account, particularly those by agencies such as the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, and the Nigerian National Petroleum Company Limited (NNPC).
Under the Petroleum Industry Act, NNPC retains 30% of certain revenues for managing oil and gas operations and deducts 30% of its profits to fund exploration in frontier basins — provisions critics say drain government revenues and lack transparency.
Tinubu, who initially targeted 6% growth upon taking office, has now raised the bar to 7%. This is well above projections from the World Bank, which forecasts growth of 3.6% in 2025 and 3.8% in 2027.
If achieved, Tinubu’s targets would represent one of the most significant periods of economic expansion in Nigeria’s history, though analysts caution that structural reforms, revenue mobilisation, and social stability will be crucial for success.
Melissa Enoch
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