The Federal Government has announced plans to concession major highways to improve road infrastructure through the Highways Management and Development Initiative (HMDI).
Minister of Finance and Coordinating Minister of the Economy Wale Edun disclosed this during a Zoom dialogue meeting in Abuja on Thursday.
According to Edun, the HMDI will facilitate the concession of major highways, leveraging private sector investment to enhance road infrastructure.
“The Highways Management and Development Initiative would facilitate the concession of major highways to improve road infrastructure,” he said.
Edun also highlighted the significant progress Nigeria’s economy has made in the last 18 to 20 months, with the economy growing at roughly 3.84 per cent in the last quarter of 2024.
This growth rate is close to the annual target of 3.4 per cent. Inflation has also begun to ease, dropping by 1.3 percentage points between January and February, while food inflation shows signs of decline.
The Minister noted that the cost of petroleum and energy has decreased due to sectoral dynamics, and the exchange rate stability, positively impacting the cost of imported goods and services.
“Additionally, the cost of petroleum and energy is down due to sectoral dynamics,” he pointed out.
Edun further disclosed that Nigeria’s balance of trade has turned positive, with government revenues increasing by 20 per cent in 2024.
“The country’s budget deficit is reducing, and debt servicing as a percentage of revenue has dropped, contributing to an overall improvement in living standards.
“The government plans to focus on further stabilisation and creating an environment that encourages private sector investment.”
Edun stressed the importance of leveraging technology to boost revenue from government-owned enterprises.
According to him, the proposed tax reform bill will see an increase in the top-end personal income tax rate from 18.6 per cent to 25 per cent, alongside efforts to tighten government expenditure.
“Economic growth will be driven by agriculture, housing, and infrastructure,” Edun stated, adding that the government plans to continue improving farming techniques to ensure good harvests and introduce a 25-year low-interest mortgage to address the housing deficit.
In addition to the HMDI, Edun noted that the government is transitioning from concessional and bilateral financing to more affordable funding options, such as domestic bond issuance.
He reaffirmed the government’s commitment to resolving pensioners’ legacy debts, with over N700 billion in bonds already issued for pension payments.
Despite Nigeria’s continued reliance on oil, Edun reiterated efforts to create a safer, investor-friendly environment for the oil sector.
“Now is the time for equity, revenue generation, and private sector participation, both domestically and internationally,” Edun added.
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