ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has announced that the Highways Management and Development Initiative will support the concession of major highways to enhance road infrastructure.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this disclosure during a Zoom dialogue meeting in Abuja on Thursday.
“The Highways Management and Development Initiative would facilitate the concessioning of major highways to improve road infrastructure,” he stated.
Edun began by outlining the economic progress Nigeria has made over the past 18 to 20 months, emphasizing that the country narrowly avoided economic collapse after relying on unlawfully borrowed Central Bank funds that exceeded regulatory limits.
“Where we are now is that, in the last quarter of 2024, the economy grew at roughly 3.84 per cent, which is close to the annual target of 3.4 per cent,” he said.
He pointed out that inflation had begun to decline, dropping by 1.3 percentage points between January and February, while food inflation also showed signs of easing.
He further noted that petroleum and energy costs had decreased due to sectoral dynamics.
The minister also underscored the stabilisation of the exchange rate, which has helped lower the cost of imported goods and services, particularly in key sectors such as healthcare and education.
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“Additionally, the cost of petroleum and energy is down due to sectoral dynamics,” he added.
Edun also highlighted that Nigeria’s balance of trade had turned positive, with government revenues increasing by 20 percent in 2024.
He noted that the country’s budget deficit was shrinking, while debt servicing as a percentage of revenue had declined, contributing to an overall improvement in living standards.
“With this progress, the government is now focusing on further stabilisation and creating an environment that encourages private sector investment,” he said, emphasizing the need to leverage technology to boost revenue from government-owned enterprises.
Speaking on the proposed tax reform bill, Edun disclosed that it would raise the top-end personal income tax rate from 18.6 percent to 25 percent, alongside measures to tighten government expenditure.
“Economic growth will be driven by agriculture, housing, and infrastructure,” he stated, adding that the government aims to improve farming techniques to ensure better harvests and introduce a 25-year low-interest mortgage scheme to tackle the housing deficit.
Beyond the Highways Management and Development Initiative (HMDI), Edun stressed that the government is shifting from concessional and bilateral financing to more cost-effective funding options, such as domestic bond issuance.
He also reaffirmed the administration’s commitment to addressing pensioners’ legacy debts, noting that over N700 billion in bonds had already been issued for pension payments.
While acknowledging Nigeria’s continued reliance on oil, Edun reiterated the government’s efforts to create a safer, investor-friendly environment for the sector.
He called for maximizing revenue from fossil fuels while promoting public-private partnerships, joint ventures, and privatization to drive investment.
“Now is the time for equity, revenue generation, and private sector participation, both domestically and internationally,” Edun concluded.