The Federal Government has projected an increase in Personal Income Tax (PIT) for high-income earners, rising from 18.6% to 25% once the Tax Reform Bills become law.
Speaking at a Zoom dialogue meeting in Abuja, Finance Minister Wale Edun said the tax adjustment would build on last year’s 20% revenue increase.
Economic Stability and Growth Sectors
Edun stated that Nigeria’s economy had achieved relative stability over the past 18 to 20 months.
He highlighted agriculture, housing, and infrastructure as key drivers of economic growth in 2024.
The government plans to enhance agricultural productivity through improved dry and wet season farming techniques.
To address the housing deficit, a 25-year low-interest mortgage scheme with single or low double-digit rates will be introduced.
For infrastructure, the Highways Management and Development Initiative (HMDI) will facilitate major highway concessions, citing the Benin-Asaba Highway as a successful privately funded project.
Debt Management and Revenue Expansion
The minister emphasized a shift from concessional and bilateral financing to cheaper funding options, including domestic bond issuance.
Over N700 billion in bonds have been issued to clear pension arrears, reaffirming the government’s commitment to resolving legacy pension debt.
Despite Nigeria’s reliance on oil revenue, Edun stressed efforts to maximize fossil fuel revenue while promoting public-private partnerships (PPPs) and privatization to boost investment.
Economic Indicators Moving in the Right Direction
Reflecting on economic performance, Edun noted that Nigeria narrowly avoided collapse at the start of the Tinubu administration, surviving on illegally borrowed central bank funds.
He reported a 3.84% GDP growth rate in the last quarter of 2024, aligning with the annual 3.4% target.
Inflation is declining, dropping by 1.3 percentage points between January and February, while food prices, energy costs, and exchange rate stability are positively impacting living costs.
Government revenues increased by 20% in 2024, reducing the budget deficit and debt servicing burden.
Future Outlook
Edun assured that all economic indicators were improving, and the government remained focused on stabilization and attracting private investment.
He also highlighted the role of technology in boosting revenue generation from government-owned enterprises.
