Nigeria’s Ministry of Finance is changing how the state finances growth by strengthening revenue, public assets, and private investment.
Nigeria wants to raise its tax- to-GDP ratio from less than 12% today to at least 18% within three years. At the same time, it wants government revenue to reach 25% of GDP. These targets are part of a broader effort to change how Africa’s largest economy finances growth, manages public assets, works with investors, and spends public money. The Federal Ministry of Finance has placed each of those areas inside a single reform program that reaches far beyond taxation.
The Ministry occupies a broad position within Nigeria’s economic system. It oversees fiscal policy, public finance, government assets, revenue generation, and budget management while coordinating economic policy across government. Its work extends into agriculture, infrastructure, investment policy, trade, and financial sector reforms because every major economic program eventually depends on public finance. “My Ministry’s priorities follow President Bola Ahmed Tinubu’s national economic agenda,” says Minister of Finance, Hon. Taiwo Oyedele. “Revenue mobilization comes first, growth follows, and fiscal discipline forms the third pillar,” he says, noting that each priority contains measurable targets.
Revenue presents Nigeria’s most immediate challenge. The government has long operated with one of the lowest tax collection rates among large economies. According to Minister Oyedele, the tax-to-GDP ratio stood below 10% when the current administration entered office. It reached 13.5% before Nigeria rebased its GDP in 2025. The larger GDP reduced the ratio to about 11.7%, although tax collections continued to increase in absolute terms. “We think we’re still on track to get to a minimum of 18% within the next three years,” he says.
The Ministry has expanded the discussion beyond taxes, examining every significant government revenue source. Oil and gas remain central. Solid minerals receive greater attention. Government-owned enterprises undergo closer financial review. Public investments, grants, recoveries, and state-owned real estate all enter the same assessment process. The question, according to Minister Oyedele, is “how do you optimize value from government assets?” The Ministry of Finance is compiling a comprehensive national asset register before deciding how these assets should generate greater economic value.
As revenue alone cannot produce sustained economic expansion, the Ministry pairs fiscal reforms with sector-specific growth strategies. “Nigeria’s economy currently expands at roughly 4% annually,” notes Minister Oyedele. “The government wants this figure to reach at least 7% within two or three years while lifting real per capita income growth to between 4% and 5%.” These targets sit alongside President Tinubu’s ambition to build a US$1 trillion economy within five or six years.
Credit represents one of those sectors. Nigeria’s financial system still leaves large parts of the economy without access to formal borrowing. Consumer credit, mortgages, student loans, vehicle finance, and personal lending remain less developed than in many advanced economies. “We want stronger policies and financial infrastructure that connect those markets into a functioning credit ecosystem,” the Minister says.
Livestock forms another area of attention. Blue economy industries offer additional opportunities. Creative industries, sports, and entertainment complete a portfolio of sectors that the government believes can raise national output above its current trajectory. The Ministry compares projected baseline growth with the additional output each reform could generate before setting priorities.
The Ministry also measures economic performance through international comparisons. “Nigeria’s real GDP expanded by about 4% last year. Dollar-denominated GDP increased by 11.2% over the same period,” says Minister Oyedele, attributing part of this outcome to an undervalued naira. In terms of purchasing power parity, the Minister places Nigeria’s PPP GDP at US$2.4 trillion, exceeding South Africa’s estimated US$1.07 trillion. Growth depends on public spending as much as revenue collection. The Ministry therefore treats fiscal discipline as a separate reform program. The government examines spending quality, expenditure priorities, transparency, and accountability together. Every allocation enters the same framework regardless of sector.
The Ministry plans to publish more fiscal information through its website. “We intend to launch a mobile application that gives citizens direct access to budget data, implementation updates, infrastructure spending, and sector allocations across health, education, and other government programs,” states Minister Oyedele. He says younger Nigerians increasingly expect information through digital platforms instead of traditional government publications. Institutional reform runs alongside these operational changes.
The approach extends into the relationship between government and business. Public- private partnerships have traditionally centered on roads, airports, power stations, and other infrastructure projects. Nigeria’s Ministry of Finance has expanded the concept into a broader model that reaches policy design itself. The Ministry now seeks private-sector participation before policies are finalized, during implementation, and throughout performance review. Minister Oyedele describes the approach as “Public Policy Private Partnership,” adding a fourth P to the traditional PPP model.
The Ministry’s approach begins with the assumption that the government cannot finance every development project. “Public resources remain limited, but there’s investment capital across pension funds, financial markets, institutional investors, and private businesses. The challenge lies in directing that capital into productive projects,” he says. The Ministry distinguishes between commercially viable projects and those that require public funding. Roads, ports, energy facilities, and other assets capable of generating commercial returns should attract private investment rather than treasury financing. Public expenditure should concentrate on services that markets are unlikely to finance, including schools and other essential social infrastructure in underserved communities.
The partnership extends well beyond financing. Businesses now participate in policy formulation before regulations reach the implementation stage. “We co-create those policies along with the private sector so we can get their input and their insights and the benefits of their experience,” Minister Oyedele says.
The Ministry has begun institutionalizing this process. “We recently announced the establishment of a ministerial advisory committee composed of professionals from different sectors and backgrounds,” states Minister Oyedele. The committee will review policy initiatives before implementation and provide independent advice throughout the reform process. Economic reforms also follow the priorities established under President Tinubu’s Renewed Hope Agenda. Food security, poverty reduction, job creation, access to capital, security, the rule of law, and anti-corruption measures appear across multiple government programs. The Ministry of Finance occupies a coordinating role because each program requires publicfinancing and fiscal oversight.
Agriculture remains one of the government’s most active investment areas. Recent Federal Executive Council decisions approved programs that expand agricultural production, strengthen farmer skills, improve storage capacity, and upgrade logistics across agricultural value chains. The initiatives extend beyond primary production into processing and distribution.
The Ministry treats economic expansion as the primary source of sustained job creation. Higher levels of private investment, increased production, and stronger business activity generate employment opportunities across multiple sectors. Oyedele also links employment with broader security outcomes. “When people are educated, empowered, and employed, they’re hard to recruit by criminals,” he says.
“Africa has nine fintech unicorns, and five of them are in Nigeria.”
Inclusivity has become another operational requirement across new legislation. During the preparation of Nigeria’s tax reform program, the Ministry organized several consultation sessions with organizations representing people with disabilities. “We had at least three sessions with them, where we got their inputs, and we’re able to incorporate those things into the law,” Minister Oyedele says.
The Ministry also intends to measure reform outcomes more systematically. “Future public reporting will include indicators that track progress across different policy areas. The figures will allow government performance to be assessed against published targets,” notes Minister Oyedele. Investment policy follows the same emphasis on measurable competitiveness. Nigeria already holds Africa’s largest population and one of its largest consumer markets. The Minister argues that those structural advantages become stronger when combined with recent fiscal and regulatory reforms. He points to Nigeria’s technology sector as one example. “Africa has nine fintech unicorns, and five of them are in Nigeria,” he says. The Ministry expects macroeconomic stability to strengthen this investment case further.
Regional integration forms another part of the strategy. Nigeria has introduced measures that support the implementation of the African Continental Free Trade Area. The Ministry sees regional commerce as a practical route for expanding Nigerian businesses beyond the domestic market while opening the country
to greater trade across Africa. With Nigerian banks expanding across several African markets in recent years, the Ministry wants payment systems to develop at the same pace. Hon. Oyedele describes a future in which businesses can settle transactions across African borders directly in local currencies. “Routing payments through third currencies currently imposes unnecessary costs on African trade,” he says.
Trade policy has also changed. President Tinubu signed new fiscal policy measures for 2026 that include tariff adjustments linked to regional trade commitments. The Ministry expects those measures to increase commercial exchanges between Nigeria and other African economies while giving Nigerian businesses greater access to regional markets. The Ministry views domestic reforms and regional leadership as closely connected. “Stronger economic institutions at home will strengthen Nigeria’s influence across the continent while giving Africa a more coordinated voice in global economic discussions,” notes Minister Oyedele. The Ministry’s current agenda therefore extends beyond balancing public finances. It seeks to change how the Nigerian state raises revenue, allocates capital, works with business, and competes within an increasingly integrated African economy.
Produced independently of the TIME Africa newsroom by Penresa.