President Bola Tinubu has expressed confidence in his administration’s “Renewed Hope Agenda,” envisioning Nigeria’s ascent to a trillion-dollar economy within the coming decade.

This is coming against the backdrop of skepticism trailing his economic initiatives since he was sworn in on May 29. Nigeria’s economy has taken a massive downturn, with inflation rising to 27.33% amid soaring cost of living.

However, Tinubu said to achieve his economic goals, he would leverage the nation’s abundant population and resources. He highlighted the imperative of tapping into Nigeria’s economic prowess.

According to a statement by presidential media aide Stanley Nkwocha, the President underscored that the trillion-dollar milestone could be achieved by leveraging Nigeria’s vast resources, with a primary focus on unlocking the nation’s complete economic potential.

This declaration was made during the opening session of the 2023 National Engineering Conference, Exhibition, and Annual General Meeting of the Nigerian Society of Engineers (NSE) in Abuja.

Represented by Vice President Kashim Shettima at the event, President Tinubu emphasized that Nigeria, armed with its rich population and resources, holds the potential to evolve into a trillion-dollar economy within the next ten years.

He reiterated the administration’s commitment to job creation, providing access to capital for businesses of all scales, promoting inclusivity, upholding the rule of law, and combating hunger, poverty, and corruption as pivotal elements of the Renewed Hope Agenda.

“The Renewed Hope Agenda of my administration is defined by our commitment to unleashing our country’s full economic potential, by focusing on job creation, access to capital for small and large businesses, inclusiveness, the rule of law, and the fight against hunger, poverty, and corruption,” Tinubu said.

While acknowledging the challenges faced by many Nigerians presently, Tinubu expressed confidence that the hardships were temporary, with lasting benefits on the horizon. He delineated the administration’s strides in transforming the economy and fostering opportunities for citizens.

Addressing concerns raised by stakeholders in the manufacturing sector, Tinubu highlighted ongoing efforts to address challenges such as access to low-cost capital, multiple taxation, infrastructure deficiencies, foreign exchange hurdles, and export barriers. He assured stakeholders of the administration’s proactive measures in tackling these issues decisively and with unprecedented boldness.

“I have had engagements with stakeholders across Nigeria’s manufacturing sector. I am very much aware of the problems and challenges that are uppermost in your minds: access to low-cost capital, multiple taxation, infrastructure issues, foreign exchange, and export obstacles, among others.

“I am happy to let you know that we are tackling, with unprecedented boldness and decisiveness, each and every one of these issues,” he said.

Touching upon taxation, President Tinubu outlined the government’s dual objective of increasing tax revenues while simultaneously lessening the burden on individuals and businesses. He articulated plans to streamline taxes, enhance efficiency, and plug loopholes to ensure a less burdensome tax regime for businesses and employers.

“It may sound like a contradiction, but it is not: by streamlining the number of taxes, introducing greater efficiency, and blocking the loopholes through which leakages occur, we can and will deliver less burdensome tax regimes to businesses and employers of labor,” he said.

Furthermore, Tinubu shed light on the government’s efforts in reforming the foreign exchange system, aiming to abolish unwieldy and exploitative rate regimes. The goal is to establish transparent price discovery mechanisms, fostering an attractive environment for substantial inflows into a well-managed official market.

“The government’s focus in foreign exchange has been to abolish an unwieldy and much-abused rate regime, setting the foundation for transparent price discovery and all the other elements required to attract substantial inflows into a properly run official market,” the President added.

The $1 trillion economic vision was announced last month during the opening address at the 29th edition of the Nigeria Economic Summit held in Abuja. The economic growth plan aims to elevate Nigeria’s economy to $1 trillion by 2026 and further expand it to $3 trillion by the end of the decade in 2030.

President Bola Tinubu has presented the 2024 appropriation bill to the National Assembly, referring to it as the “Budget of Renewed Hope.”

The budget, which was approved by the Federal Executive Council earlier in the week, amounts to N27.5 trillion.

In his address to the National Assembly, President Tinubu outlined key elements of the budget proposal, focusing on priorities and projections for the fiscal year. The following are some highlights from his speech:

Revenue Generation and Deficit: The federal government aims to generate N18.32 trillion in revenue to fund the budget. The projected budget deficit is N9.18 trillion.

Economic Growth Projection: President Tinubu projected an impressive economic growth of 3.76% for the 2024 fiscal year.

Expenditure Breakdown: Recurrent expenditure – N9.92 trillion
Capital expenditure – N8.7 trillion.

Security Architecture Overhaul: Plans for a comprehensive overhaul of the internal security architecture to strengthen law enforcement capabilities and enhance the protection of lives, property, and investments.

Human Capital Development: Emphasis on human capital development, particularly for school children.

Green Economy and Energy Transition: Commitment to a greener future, with a focus on public-private partnerships for big-ticket infrastructure projects in energy and transportation.

Allocation of resources to support innovative and environmentally conscious initiatives. Promotion of renewable energy sources to position Nigeria as a regional leader in the global movement toward clean and sustainable energy.

Oil Price and Exchange Rate Assumptions: Conservative oil price benchmark of $77.96 per barrel. Daily oil production is estimated at 1.78 million barrels per day. The naira to U.S. Dollar exchange rate is set at N750.

Debt Service and Financing: Debt service is projected to be 45% of the expected total revenue. The projected budget deficit of 3.88% of GDP is lower than the deficit recorded in 2023.

New borrowings of N7.83 trillion, privatization proceeds of N298.49 billion, and a drawdown on multilateral and bilateral loans of N1.05 trillion to finance the deficit.

President Tinubu emphasized the government’s commitment to meeting debt obligations and highlighted efforts to reduce the budget deficit compared to the previous year. The budget proposal is expected to reflect priorities in economic growth, security, human capital development, and environmental sustainability.

Read his budget statement below:

“We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent in 2024. In preparing the 2024 Budget, our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.

“Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation, and other sectors. This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.

“As we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition. We must seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.

“Together, we will strive for Nigeria to emerge from COP28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship, the President said.”

He added, “Accordingly, an aggregate expenditure of 27.5 trillion nairas is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion nairas while debt service is projected to be 8.25 trillion nairas and capital expenditure is 8.7 trillion nairas. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.

“The budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023, which represented 6.11 percent of GDP. The deficit will be financed by new borrowings totaling 7.83 trillion naira, 298.49 billion naira from privatization proceeds, and 1.05 trillion naira drawn down on multilateral and bilateral loans secured for specific development projects.”