Finance minister unveils roadmap to $1tn economy, says Nigeria must move beyond stability

Nigeria has moved beyond the phase of restoring macroeconomic stability and must now focus on translating economic reforms into inclusive growth, higher productivity, and shared prosperity. Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, made this known on Thursday while delivering the keynote address at the 14th BusinessDay CEO Forum in Lagos.

Three phases of economic transformation

Speaking on the forum's theme, 'From Stability to Shared Prosperity', Oyedele said Nigeria had reached a defining moment in its economic journey. He explained that every successful economic transformation follows three distinct phases: stabilisation, growth, and shared prosperity. Stabilisation involves correcting structural distortions, rebuilding confidence, and restoring fiscal credibility. Growth is driven by increased investment, productivity, and job creation. The final phase ensures that economic growth improves living standards, expands opportunities, and reduces poverty.

Oyedele recalled that when the Tinubu administration assumed office, Nigeria faced multiple structural challenges. These included a fragmented foreign exchange market, an unsustainable fuel subsidy regime, weak public finances, and a tax system that discouraged investment while generating insufficient revenue. “We inherited an economy weighed down by structural distortions. We were taxing poverty, taxing capital, and taxing jobs while raising very little revenue. We had two options: postpone the difficult decisions or confront them. President Bola Tinubu chose reform because it was economically necessary,” he said.

Reforms yielding results

The minister said reforms such as the unification of the foreign exchange market, fiscal restructuring, and efforts to rebuild external reserves had restored macroeconomic stability and renewed investor confidence. Despite geopolitical tensions and uncertainties in the global economy, Oyedele noted that Nigeria had recorded encouraging economic indicators. Inflation has resumed a downward trend after temporary disruptions caused by global events, while external reserves continue to improve and international investors are gradually returning to the country.

“International rating agencies have acknowledged our progress, and investment interest has steadily returned. But macroeconomic stability is not the destination. It is only the foundation upon which prosperity must be built,” he said. According to him, countries do not become prosperous simply by maintaining stable macroeconomic indicators. “A stable economy can still be stagnant if productivity remains low. Stability must attract investment, investment must increase productivity, productivity must create jobs, and those jobs must improve the lives of citizens,” he added.

Three strategic pillars for the $1tn economy

Oyedele unveiled three strategic pillars for Nigeria's economic transformation. The first pillar is productivity. He observed that Nigeria had for decades depended largely on the distribution of natural resource revenues rather than creating new value through production. The government intends to reverse that trend by promoting manufacturing, agro-processing, technology, renewable energy, and light industries capable of competing globally. “We must stop exporting raw materials and importing finished products. Nigeria must become an economy that manufactures, processes, and competes internationally,” he said.

The second pillar focuses on revenue optimisation. Oyedele explained that the administration's ongoing tax reforms are designed not to increase tax burdens but to simplify compliance, eliminate multiple taxation, and widen the tax net through technology-driven administration. “Our objective is not to punish businesses with higher taxes. We want a tax system that is simpler, fairer, and encourages investment while generating sustainable revenue for development,” he said. He disclosed that preliminary government assessments suggested that excessive regulation and administrative inefficiencies impose costs on businesses exceeding the combined revenue generated from Value Added Tax, Company Income Tax, and Personal Income Tax. “If we successfully remove unnecessary bureaucracy and excessive regulation, it will be almost equivalent to making Nigeria a tax-free destination for businesses without reducing government revenue,” he said.

The third pillar is inclusion. Oyedele stressed that economic prosperity would have little meaning if millions of young people, women, and persons living with disabilities remained excluded from productive economic activities. He said the government was deliberately investing in education, vocational training, entrepreneurship, and skills development while expanding support for small and medium-sized enterprises. “Our support for SMEs is not charity. These businesses remain the country's biggest creators of jobs and innovation. Strengthening them is strengthening Nigeria,” he said.

For Nigerian businesses and consumers, the minister's roadmap signals a push toward lower regulatory costs and a simpler tax system. If executed, this could reduce the cost of doing business and improve the investment climate, with potential positive effects on the naira and job creation over the medium term.