Tinubu Aims for 7% Economic Growth by 2027 to Transform Nigeria’s Economy
Abuja, Nigeria – President Bola Ahmed Tinubu has announced an ambitious plan to achieve 7% annual economic growth by 2027, with the long-term vision of expanding Nigeria’s economy to four times its current size by 2030.
Speaking to the federal cabinet on Wednesday, Tinubu emphasized that the reforms introduced since his administration began in 2023 — including the removal of petrol and electricity subsidies and the devaluation of the naira — have boosted macroeconomic stability and investor confidence. However, he acknowledged that these measures have also triggered Nigeria’s worst cost-of-living crisis in a generation.
Economic Performance and Challenges
Nigeria’s economy grew by 3.13% in the first quarter of 2025, supported by a GDP rebasing that raised the official size of the economy to ₦372.822 trillion (about $243.55 billion). Despite this increase, growth fell short of expectations.
Tinubu identified low public savings and limited investment as major obstacles. Currently, public investment accounts for just 5% of GDP, a figure he aims to improve.
Policy Directives for Growth
The president directed his economic team to review revenue retention and deductions from the federal account, including those collected by agencies such as:
- Federal Inland Revenue Service (FIRS)
- Nigeria Customs Service
- NNPC Ltd
He noted that under the Petroleum Industry Act (PIA), NNPC retains 30% of certain revenues and deducts 30% of its profits for oil exploration in underexplored frontier basins — a policy that has drawn criticism for being excessive and lacking transparency.
The Bigger Picture
Tinubu’s initial target upon taking office in 2023 was 6% growth, but he has now raised it to 7%, framing it as essential to lifting millions out of poverty. The World Bank, however, projects a more modest 3.8% growth rate for 2027.
Conclusion
With bold reforms, tighter fiscal management, and increased investment in infrastructure and industry, Tinubu’s 7% growth target is ambitious but achievable. The coming years will reveal whether Nigeria can overcome its current economic headwinds to become one of the fastest-growing economies in Africa.
