By Isaac Anumihe, Abuja
The Federal Government has announced that achieving a Gross Domestic Product (GDP) per capita of over $33,000 by 2050 will require a minimum annual investment of $100 billion. This projection was revealed by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, during a management retreat for the Nigerian Financial Intelligence Unit (NFIU) held in Abuja.
Senator Bagudu expressed concern over Nigeria’s current trajectory, noting that the nation is far from meeting this ambitious target. “Our Agenda 2050, which outlines our national aspirations, necessitates an annual investment of at least $100 billion to achieve a GDP per capita of $33,000 or more by 2050,” he stated. “Regrettably, we are nowhere near that.”
The minister highlighted the gap between the current levels of financing and the necessary investments, emphasizing that despite President Bola Tinubu’s administration implementing bold and courageous economic reforms, Nigeria still falls short of the required financial flows. Bagudu compared Nigeria’s $20 billion federal budget with that of similarly populated nations like Brazil and Indonesia, which have budgets of $750 billion and $210 billion, respectively, to illustrate the scale of the challenge. Bagudu stressed the need for a robust financial system to attract both domestic and foreign investments, which are crucial for financing the country’s development plans. “The plan is to leverage private sector or capital market funds to finance our development goals,” he explained.
“To achieve this, we need a financial system that is built on confidence, integrity, and soundness.”
The minister also pointed to the importance of Nigeria’s credit rating, which he believes should improve as a result of the reforms and institutions established, particularly the NFIU. “Our credit rating should reflect the significant measures we’ve taken, similar to those in countries that have seen substantial increases in their ratings,” he said. He emphasized the role of the NFIU, praising its performance but calling for more effective communication of its activities to enhance public awareness and trust.
Bagudu concluded by underlining the importance of a sound financial system for realizing the nation’s ambitious goals. “To achieve these lofty plans, we must develop a financial system that embodies integrity and robustness,” he stated.
In related news, the Statistician General of the Federation announced that the National Bureau of Statistics (NBS) is exploring international methodologies to conduct the Consumer Price Index (CPI) survey and rebase the GDP. The NBS has recently completed several critical surveys, including the National Agricultural Sample Census, the Nigerian Living Standard Survey, the Multiple Indicators Cluster Survey, and the Survey on Force and Child Labour, as part of its ongoing efforts to update data across various sectors of the political economy.