….says ‘solid peace’ needed in Rivers to achieve 2.2mbpd oil benchmark
….government should onboard more FDIs to reduce FX pressure
The Federal Government has several options at its disposal to fund the ambitious N54.9 trillion budget for 2025, Tayo Aduloju, Chief Executive Officer (CEO), Nigerian Economic Summit Group (NESG), has said.
Speaking during a press conference in Abuja at the weekend, Aduloju emphasised that one of the key avenues for raising the over N40 trillion projected revenue could be to unlock Nigeria’s vast bankable assets, valued at over $4 trillion.
However, these assets are currently hindered by legal, regulatory, and policy bottlenecks.
To fully unlock their potential, Aduloju stressed that the government would need to clear these hurdles and de-risk the national assets to make them more attractive to both local and foreign investors.
The NESG CEO pointed out that while the budget is ambitious, with several assumptions underpinning its execution, Nigeria must tap into external revenue sources such as oil exports, non-oil exports, Foreign Direct Investment (FDI), and diaspora remittances to meet its targets.
In particular, Aduloju highlighted the potential of the $5 billion investment pipeline announced recently by the Minister of Industry, Trade and Investment, along with an additional $20 billion from economic diplomacy over the next two years.
He argued that these funds could play a pivotal role in funding the budget and boosting Nigeria’s economic stability.
Addressing the challenges of oil production, Aduloju emphasized that stability in Rivers State is critical for achieving the government’s target of 2.2 million barrels per day (mbpd) in oil output.
He noted that political stability in the Niger Delta region, which is home to most of Nigeria’s key oil assets, is directly correlated with oil production figures.
Any instability in Rivers, he said, would likely have an immediate negative impact on oil output and, by extension, the budget.
“If you want to keep oil production at 2.2 mbpd, which is within the arc of the possible, you need not just relative stability, but true political stability in Rivers State for the budget to even look realistic,” Aduloju remarked.
Inflation management, he continued, is another critical factor that hinges on energy security and tax reforms.
Aduloju called for a balanced trade-off between fiscal and monetary policies to help manage expectations and achieve fiscal deficits.
He suggested better coordination between the Central Bank of Nigeria (CBN) and fiscal authorities to align their data points, which he believes is necessary for successful economic policy execution.
Further stressing the importance of tax reforms, Aduloju noted that such reforms could significantly improve the ease of doing business, attract more investment, and potentially lead to a reduction in the fiscal deficit.
He warned, however, that the 2025 budget will require extraordinary efforts to execute, with a particular focus on avoiding excessive borrowing.
Should borrowing be necessary, Aduloju recommended a creative and efficient strategy that relies on both domestic and external sources, while ensuring loans are obtained at favorable rates and judiciously utilised.
The NESG CEO also addressed Nigeria’s need to shift towards an FDI-driven economy. He emphasized the importance of preparing high-quality investment-grade projects that could attract foreign investors and catalyze sustainable growth.
Furthermore, Aduloju pointed to the challenges posed by global economic shifts, including the U.S.’s recent withdrawal from the World Trade Organization (WTO), which may limit Nigeria’s access to trade assistance, especially amid cuts in global aid programs.
In the healthcare sector, Aduloju lauded the Nigerian government’s decision to implement a zero tariff on pharmaceuticals.
This policy, he said, is a practical response to the reduction in USAID support for healthcare. However, he cautioned that the thezero-tarifff policy should not lead to a “free-for-all” scenario but rather incentivize local production and job creation, particularly in the pharmaceutical value chain.