Nigeria needs 7% GDP growth to reduce poverty – Wale Edun
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the country must achieve sustained GDP growth of about 7% if it hopes to meaningfully reduce poverty and improve the living standards of its citizens.
Edun made the comment while responding to a question at a press briefing following the conclusion of the 2024 IMF and World Bank Spring Meetings held in Washington, D.C.
According to him, although Nigeria’s economy is currently growing at an average of 3.4% in 2024, with the most recent quarterly figure recorded at 3.84%, this level of growth is insufficient to lift millions of Nigerians out of poverty.
- “Unless we get to about 7% growth, we’re not going to substantially reduce poverty and improve the life of Nigerians,” Edun stated. “That is the target and commitment of this administration.”
The minister outlined key strategies to achieve this ambitious target, stressing the importance of boosting agricultural productivity, expanding digital infrastructure, supporting young entrepreneurs through e-commerce initiatives, and improving access to financing for businesses of all sizes.
He emphasized that structural reforms, particularly in the financial sector, are central to these efforts. According to Edun, the Central Bank of Nigeria (CBN) is working closely with regulatory authorities to remove bottlenecks and make capital more accessible to micro, small, medium, and large enterprises across the country.
Strengthening social protection
Edun also spoke extensively about the government’s renewed focus on social protection programs, especially for the most vulnerable Nigerians. He said the administration had revamped the direct benefit transfer (DBT) system to ensure efficiency, transparency, and broader reach.
- “It is the promise of the President to make sure that the poor and the most vulnerable are not left behind,” he said.
The DBT program now operates on a monthly payment system, with each beneficiary uniquely identified through biometric registration linked to their National Identification Number (NIN).
Payments are made either into beneficiaries’ bank accounts or through mobile wallets, providing a digital trail that enables easy verification of recipients, amounts paid, and payment dates.
Currently, around 1 million individuals are covered under the program. However, Edun disclosed that efforts are underway to enroll an additional 3 million individuals into the national social register each month.
The register, which represents around 20 million households, is being expanded to ensure all entries are biometrically verified and digitally accessible.
The finance minister explained that having a robust, verified database of the poor will not only facilitate existing welfare programs but will also allow the government to reach vulnerable groups swiftly during emergencies or economic shocks.
World Bank’s stark warning
Edun’s remarks come against the backdrop of a sobering warning from the World Bank about Nigeria’s poverty situation. According to a recent report covered by Nairametrics, Nigeria now accounts for 15% of the world’s poorest people.
The World Bank noted that despite economic reforms, Sub-Saharan Africa remains the epicenter of global extreme poverty, with Nigeria contributing a significant share.
It emphasized the urgent need for policies that promote inclusive growth, enhance food security, and strengthen social protection systems — areas that align closely with the priorities Edun outlined.
Read more: Nigeria accounts for 15% of the world’s poorest, says World Bank
Bottom line – Reaching the 7% growth target Edun describes will require consistent policy execution, significant private sector participation, and the ability to shield the most vulnerable citizens from economic shocks.
Until that happens, the challenge of poverty reduction will remain steep, and the urgency undeniable.
