Nigeria’s Economy Projected to Grow 4.68% in 2026, Says Finance Minister Wale Edun

Nigeria’s Economy Set for 4.68% Growth in 2026 – Edun

Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, has announced that Nigeria’s economy is projected to grow by 4.68 per cent in 2026 as the government pursues investment-led, inclusive growth to create jobs and enhance citizens’ welfare.

Edun made this disclosure on Thursday in Lagos during the keynote address at the launch of the Nigerian Economic Summit Group (NESG) Macroeconomic Outlook Report for 2026. He emphasised that this projection is consistent with the government’s medium-term target of achieving seven per cent annual growth and building a one-trillion-dollar economy by 2030.

Key Economic Projections for 2026

Highlighting the specifics, Edun stated that the economy in 2026 is expected to expand at 4.68 per cent. He projected average inflation to stand at 16.5 per cent, with the exchange rate stabilising at about N1,400 per dollar.

“For inflation, as we have said, we need to get into single figures. It is expected to average 16.5 per cent and the exchange rate, N1,400 per dollar,” he said.

These projections underscore the government’s focus on translating macroeconomic stability into tangible improvements in the daily lives of Nigerians, moving beyond mere metrics to address issues like electricity supply, food availability, and overall welfare.

2026 Budget: Consolidation, Resilience, and Prosperity

The 2026 budget, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” reflects President Bola Tinubu’s commitment to ensuring that economic gains benefit ordinary citizens. Edun noted that the budget deficit is estimated at about four per cent of Gross Domestic Product (GDP), a figure that balances Nigeria’s vast development needs with ambitions for accelerated growth.

Following the removal of economic distortions and recent stabilisation measures, policy emphasis has shifted to growth through heightened investment. This includes ongoing investments in digital infrastructure, such as the rollout of over 90,000 kilometres of fibre optic cables in collaboration with the World Bank and the Ministry of Communications. These initiatives aim to empower young Nigerians and foster technology-driven growth.

Four Pillars of Economic Reform

Edun outlined that the reform programme is anchored on four key objectives: consolidating macroeconomic stability, improving the business and investment climate, strengthening human capital while protecting the vulnerable through social protection, and stimulating broad-based economic growth.

On fiscal performance, he highlighted that despite shortfalls in oil and gas revenues compared to budgeted levels, the Federal Government has prioritised fiscal federalism, transparency, and accountability in managing the federation account. This has ensured full disbursement of funds due to states and sub-national governments, bolstering their financial positions.

Many states have recorded budget surpluses of about three per cent, enabling increased spending on health, education, public services, and other social and economic priorities.

Fiscal Discipline and Capital Expenditure

Demonstrating fiscal discipline, the Federal Government extended the 2024 budget to complete priority capital projects. Aggregate capital expenditure in 2024 reached about N11.1 trillion, achieving an 85 per cent performance rate, which reflects the administration’s dedication to finishing ongoing projects.

All statutory obligations, including foreign and domestic debt servicing as well as salary payments, were fully met. “These outcomes underscore a strong commitment to transparency, structural reform and fiscal discipline, as well as laying the foundation for rapid, sustained and inclusive growth,” Edun added.

The long-term growth target of seven per cent is designed to outpace population growth and lift millions of Nigerians out of poverty.

Revenue Mobilisation and Tax Reforms

Reducing reliance on debt is a core fiscal priority. The government is boosting revenue through digitalisation, central billing systems, and improved reconciliation processes to block leakages. “The introduction of a central billing and receipt system would enhance transparency by tracking assessments and payments in real time across government agencies,” Edun explained.

A new tax law has been implemented to be pro-poor, broaden the tax base, simplify compliance, and exempt essential goods, food items, and small businesses.

Strategic Vision and Key Priorities

President Tinubu’s vision is to build a resilient, diversified, and globally competitive economy, leveraging exchange rate stability and expanded trade opportunities under ECOWAS and the African Continental Free Trade Area.

Key priorities for 2026 include improving competitiveness through sound governance, boosting agricultural productivity and food security, accelerating infrastructure and energy development, and investing in human capital. Edun acknowledged constraints in global concessional financing, stressing the need to rely more on domestic resource mobilisation and private sector investment.

He urged Nigerians at home and in the diaspora to invest in the economy amid improved macroeconomic conditions. “The private sector is indispensable to sustaining growth,” he said.

Commitment to Inclusive Growth

Despite the challenges ahead, Edun affirmed the Federal Government’s resolve to convert economic stability into inclusive, job-rich growth. “We remain committed to delivering tangible benefits to the average Nigerian,” he stressed.

This outlook positions Nigeria on a trajectory towards sustained prosperity, with policies designed to ensure that growth is not just recorded in figures but felt in the everyday experiences of its people.

Source: https://thenationonlineng.net/nigerias-economy-to-grow-by-4-68-in-2026-edun/