… As Edo targets informal sector to meet ₦160bn IGR goal
LAGOS: Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun has said that the nation’s economy is projected to grow 4.68 percent in 2026 as the government drives investment-led, inclusive growth aimed at creating jobs and boosting citizens’ welfare.
Edun made the remarks on Thursday in Lagos while delivering the keynote address at the launch of the Nigerian Economic Summit Group (NESG) Macroeconomic Outlook Report for 2026.
He said the growth projection aligns with the government’s medium-term goal of achieving seven percent annual growth and building a one-trillion-dollar economy by the end of the decade.
According to Edun, the economy in 2026 is projected to grow at 4.68 percent, consistent with our path to seven percent growth per annum and a one-trillion dollar economy by 2030.
He projected average inflation at 16.5 percent and the exchange rate at about N1,400 per dollar.
“For inflation, as we have said, we need to get into simple figures. It is expected to average 16.5 percent and the exchange rate, N1,400 per dollar,” he said.
Edun noted that the 2026 budget, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” reflects President Bola Tinubu’s commitment to ensuring that macroeconomic improvements translate into real gains in Nigerians’ daily lives.
“It is not about the metrics or the percentages; it is about the lived experience of Nigerians in terms of electricity supply, food availability and improved welfare,” he said.
He said the budget deficit, estimated at about four per cent of Gross Domestic Product (GDP), reflected the scale of Nigeria’s development needs and the ambition to accelerate growth.
Edun emphasised that following the removal of distortions and recent stabilisation measures, the focus of economic policy had shifted to driving growth through increased investment.
“Ongoing investments in digital infrastructure, including the rollout of over 90,000 kilometres of fibre optic cables in collaboration with the World Bank and the Ministry of Communications are part of efforts to empower young Nigerians and support technology-driven growth,” he said.
The minister said the reform programme was anchored on four objectives.
“These include: consolidating macroeconomic stability, improving the business and investment climate, strengthening human capital while protecting the vulnerable through social protection, and stimulating broad-based economic growth,” he noted.
On fiscal performance, Edun said that even with shortfalls in oil and gas revenues compared to budgeted levels, the Federal Government prioritised fiscal federalism, transparency, and accountability in managing the federation account.
“This ensured that funds due to states and sub-national governments were fully disbursed, significantly strengthening their financial positions,” he said.
He added that many states recorded budget surpluses of about three percent, enabling increased spending on health, education, public services, and other social and economic priorities.
Edun also highlighted that the Federal Government demonstrated fiscal discipline by extending the 2024 budget to ensure the completion of priority capital projects.
“Aggregate capital expenditure in 2024 stood at about N11.1 trillion, representing an 85 percent performance, reflecting the administration’s emphasis on completing ongoing projects,” the minister explained.
He said all statutory obligations, including foreign and domestic debt servicing as well as salary payments, were fully met.
“These outcomes underscore a strong commitment to transparency, structural reform and fiscal discipline, as well as laying the foundation for rapid, sustained and inclusive growth,” Edun added.
He noted the government’s long-term growth target of seven per cent was aimed at outpacing population growth and lifting millions of Nigerians out of poverty.
The minister explained that reducing reliance on debt was a key fiscal priority, with renewed emphasis on boosting government revenue through digitalisation, central billing systems, and improved reconciliation processes to block leakages.
“The introduction of a central billing and receipt system would enhance transparency by tracking assessments and payments in real time across government agencies,” he said.
Edun also highlighted the implementation of a new tax law designed to be pro-poor, broaden the tax base, simplify compliance, and exempt essential goods, food items, and small businesses.
He said President Tinubu’s strategic vision was to build a resilient, diversified, and globally competitive economy, leveraging exchange rate stability and expanded trade opportunities under ECOWAS and the African Continental Free Trade Area.
Edun identified key priorities for 2026 to include improving competitiveness through sound governance, boosting agricultural productivity and food security, accelerating infrastructure and energy development, and investing in human capital.
He acknowledged constraints in global concessional financing and said Nigeria must increasingly rely on domestic resource mobilisation and private sector investment to fund development.
Edun urged Nigerians at home and in the diaspora to take advantage of improved macroeconomic conditions to invest in the economy.
“The private sector is indispensable to sustaining growth,” he said.
Edun said although the task ahead was challenging, the Federal Government remained resolute in translating economic stability into inclusive, job-rich growth.
“We remain committed to delivering tangible benefits to the average Nigerian,” he stressed.
Meanwhile, Edo State has stepped up efforts to boost its revenue profile, with renewed emphasis on the informal sector as it seeks to meet an Internally Generated Revenue (IGR) target of ₦160 billion for the 2026 fiscal year.
The Chairman of the Edo State Internal Revenue Service (EIRS), Hon. Oladele Bankole-Balogun, said the new federal tax reform which came into effect on January 1, 2026, was aimed at strengthening revenue generation by states, enhancing their financial autonomy and creating a more transparent and business-friendly tax environment.
Speaking with journalists in Benin City, Bankole-Balogun disclosed that the EIRS would embark on extensive awareness and sensitisation campaigns across the state to improve compliance and enforcement under the new tax regime, with particular focus on operators in the informal sector.
He said the service was determined to change the prevailing mindset that views taxation as a burden, stressing that tax payment is a civic and social responsibility necessary for sustainable development. According to him, taxes represent citizens’ contributions to the growth and development of the state.
The EIRS chairman revealed that Edo State’s IGR has recorded significant growth under the current administration, rising to about ₦110 billion from the ₦80 billion achieved by the immediate past government. He, however, noted that meeting the ₦160 billion target for the year would require sustained effort and broader compliance.
Bankole-Balogun explained that the informal sector, which accounts for a large portion of the state’s economic activities, is critical to achieving the revenue projection. He said recent reforms, including the reorganisation of the central billing system and the strengthening of digital platforms, have positioned the service to expand its tax net more effectively.
According to him, improved efficiency and deeper engagement with the informal sector will be key drivers of the revenue drive.
He expressed confidence that the state could meet, and possibly exceed, its IGR target, adding that the successful implementation of Governor Monday Okpebholo’s SHINE agenda is closely linked to improved tax compliance and the willingness of citizens to actively participate in funding Edo State’s development.
