Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that government revenues will be directed towards funding social intervention programs aimed at benefiting 20 million Nigerians. He made this statement at the 30th Nigeria Economic Summit (NES), organised by the Nigeria Economic Summit Group (NESG) on Tuesday.
Edun highlighted that the government’s revenue in the first quarter (Q1) of 2024 surpassed N9.1 trillion, more than double the N4.06 trillion generated in the same period in 2023. This increase in revenue is primarily being allocated to social programs designed to ease the burden of necessary but challenging reforms, particularly those affecting the cost of living.
The minister emphasised that these social investment projects will benefit 60% of the country’s poorest citizens, directly affecting 20 million Nigerians. “The primary focus for revenue generation was domestic resource mobilisation,” Edun told me. “By the first half of the year, government revenue had more than doubled, thanks to the robust application of technology in reforming the civil service and improving compliance from ministries, departments, agencies, and state-owned enterprises.”
According to Edun, social investment programs directly help 4 million households, which represent 20 million people, with ambitions to expand this support to 15 million homes in total. These initiatives are being funded through increased oil output and macroeconomic changes, which are estimated to save the country 5% of GDP.
Edun also explained that the government is targeting poverty reduction by boosting agricultural productivity and food security, key factors in combating high inflation. “We are focusing on increasing food production to bring down inflation and make food more accessible and affordable for Nigerians,” he said.
To support these efforts, the government is collaborating with the African Development Bank (AfDB) to establish agricultural processing zones, which will strengthen the supply of raw materials for domestic industries.
Ndiamé Diop, the World Bank Country Director for Nigeria, praised the significant increase in revenue, noting that Nigeria’s revenue-to-GDP ratio is expected to improve. Diop highlighted that in 2022, Nigeria spent 12.9 percent of its GDP, while revenues covered only 7.6 percent, leading to a fiscal deficit that was primarily financed through debt. “This trajectory could have led to a crisis,” Diop warned.