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As part of a new Domestic Growth Acceleration Strategy (DGAS), the Federal Government has said it is changing its role in the economy from being the main spender to acting as a strategic enabler that helps attract private investment.
Minister of State for Finance, Dr. Doris Uzoka-Anite, said this yesterday in Abuja while speaking at the National Economic Council (NEC) Conference. She said the new approach has been fully built into the 2026–2030 National Development Plan.
According to her, the government has introduced a new system known as “investment budgeting,” which is designed to reduce risks around major projects and encourage private investors to commit funds. She explained that every naira spent by government under this system could attract three to five times more money from the private sector.
“Our role must evolve decisively from being the primary spender to being an enabler of investments that de-risk and unlock private capital,” Uzoka-Anite said. “The government alone cannot finance the transformation we seek.”
She explained that Nigeria’s development needs are far greater than what public funds can cover, especially in infrastructure such as roads, power, transport and housing.
“Strategic public de-risking can unlock private investment at a multiplier of three to five times the public allocation in key infrastructure,” she said. “For accelerated development at the desired scale, we need a deliberate framework—Investment Budgeting—that mobilises private capital, builds productive assets, and generates long-term economic returns.”
Uzoka-Anite noted that although the economy is beginning to stabilise, more work is needed to achieve the government’s long-term ambition of building a $1 trillion economy.
She said Nigeria recorded about four percent economic growth recovery in 2025, but explained that this level of growth is not enough to reach the trillion-dollar target.
“While growth of six to seven percent is enough to reduce poverty, reaching a $1 trillion economy requires sustained double-digit growth,” she said. “That level of expansion must be driven by private investment and deep structural reforms.”
Speaking on the 2026 fiscal outlook, the minister said government revenue is projected at ₦34 trillion. She added that the tax-to-GDP ratio is expected to move closer to 18 percent once the Nigeria Tax Act 2025 is fully implemented and taxes are harmonised across all states.
She also said inflation is expected to slow further, with the Central Bank of Nigeria targeting a rate below 13 percent by the end of 2026.
According to her, this projection is supported by ongoing bank recapitalisation, a positive trade balance and foreign reserves that are already above $40 billion.
Uzoka-Anite stressed that relying only on government funding to close Nigeria’s infrastructure gap is unrealistic.
“The mathematics is clear,” she said. “At current government allocation rates, Nigeria would need more than 111 years to mobilise the $300 billion infrastructure investment required.”
She explained that using Investment Budgeting to attract private funds is the only realistic option. “A capital pool of $100 billion, assuming a marginal propensity to consume of 0.64 to 0.75, could generate between $278 billion and $400 billion in economic output,” she said.
The minister, however, warned that the economy still faces serious risks. She listed oil price fluctuations, food supply challenges and climate-related shocks as major threats that could slow progress.
She called for strong discipline in policy execution and closer cooperation between the Federal Government and state governments to ensure that economic stability leads to real improvements in people’s lives.
“We must strengthen federal-state collaboration so that macroeconomic stability translates into better living standards for Nigerians,” Uzoka-Anite said.
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