Nigeria’s next growth phase will be driven by states and private capital rather than federal spending alone, Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele said as he outlined the government’s strategy to attract investment, deepen fiscal reforms and unlock projects across the country.
Speaking at the Invest Lagos 3.0 Governor’s Investment Showcase on Monday in Lagos State, Oyedele stressed that Nigeria’s future economic expansion would increasingly be driven by states rather than the federal government alone, explaining that investors are more interested in specific projects and investment destinations than broad national narratives.
“For decades, the conversation around investing in Nigeria focused almost exclusively on the federal government, but in the recent past, and particularly today, that narrative is fundamentally changing,” he said.
“The future of Nigeria’s growth story is being written in Lagos, Kano, Enugu, Uyo, Abeokuta, Ilorin, Kaduna, Lafia, Owerri and Umuahia.”
According to the minister, while federal reforms create an enabling environment, it is state governments that ultimately convert economic potential into projects, investments, jobs and measurable outcomes.
He cited the recently commissioned Kasi Hyperscale Data Centre in Lagos as evidence of what can be achieved when government policy aligns with private capital and long-term investment planning.
“Africa is home to nine tech unicorn startups that are valued at a billion US dollars or more, five of which are from Nigeria, all headquartered in Lagos,” he said.
The minister’s remarks come as Nigeria seeks to attract foreign and domestic investment amid increasing competition for global capital.
Nigeria Seeks to Convert Reforms Into Investments
Oyedele said the government has spent the past three years implementing difficult economic reforms designed to improve macroeconomic stability and restore investor confidence.
He pointed to the unification of the foreign exchange market, the move to a market-determined exchange rate system and the rebuilding of external reserves as key achievements.
According to him, Nigeria’s net external reserves have risen from less than $4 billion in 2023 to more than $30 billion, while gross reserves have climbed to nearly $50 billion.
“The structural resilience of our economy is manifesting despite global economic and geopolitical headwinds,” he said.
Oyedele disclosed that Nigeria recorded a GDP growth rate of 3.89 per cent in the first quarter and that the economy expanded by 11.2 per cent in dollar terms in 2025.
“It’s on track for another double-digit growth in USD terms this year, ranking Nigeria in the top 10 contributors to global GDP growth rates for 2026,” he said.
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The minister also highlighted recent improvements in Nigeria’s sovereign credit ratings, noting that S&P Global Ratings upgraded the country’s rating to B with a stable outlook, following positive actions by Fitch and Moody’s.
“This independent validation signals to global markets that Nigeria is steadily regaining macroeconomic stability,” he said.
Tax Reforms to Strengthen States
Oyedele said the government’s fiscal reform programme is focused on simplifying taxation, reducing compliance burdens and strengthening revenue generation without increasing tax pressure on businesses.
He said the objective is to improve Nigeria’s tax-to-GDP ratio from around 10 per cent to 18 per cent over the next three years by expanding economic activity and bringing more businesses into the formal sector.
“Our goal is not to tax more. It is to raise our tax-to-GDP ratio from just about 10 per cent a couple of years ago to at least 18 per cent over the next three years by stimulating economic activities and expanding the informal sector to formalise rather than suppressing economic activities,” he said.
The minister added that the new tax reform framework gives states a larger share of VAT revenue, allocates stamp duties and electronic money transfer levies directly to state governments and provides tax exemptions for state government bonds to support infrastructure financing.
‘Nigeria Deal Room’ to Connect Capital With Projects
A major highlight of the minister’s presentation was the planned establishment of a Nigeria Deal Room, which he described as a platform designed to bridge the gap between investors and viable projects.
According to Oyedele, many investment opportunities in Nigeria fail to attract funding because they are either poorly structured or not investment-ready.
“Too often, brilliant opportunities are known, but insufficiently prepared. Investors are highly interested but cannot navigate the entry points. Projects exist, but they are not bankable or investment-ready,” he said.
“To bridge this gap, the Federal Ministry of Finance is establishing a Nigerian Deal Room to transition from conversation to actual transaction.”
He explained that the platform would identify strategic projects, remove regulatory bottlenecks, reduce investment risks and link investors directly with credible opportunities.
Nigeria Remains Attractive for Long-Term Capital
Making a direct appeal to investors, Oyedele said Nigeria remains one of the world’s most compelling long-term investment destinations due to its large population, digital economy and strategic position within Africa.
“Nigeria remains one of the most compelling long-term investment destinations globally,” he said.
“We possess a young, hyper-digital and deeply enterprising population.”
He assured investors that the federal government remains committed to protecting investments, ensuring policy consistency and creating conditions that encourage sustainable growth.
“The federal government is fundamentally committed to crowding in private capital, not crowding it out,” Oyedele said.
“We’re here to ensure that your long-term capital is protected, your enterprise is rewarded, and your growth is sustainable.”
He further urged investors to view the presentations by state governors at the summit as concrete investment opportunities rather than mere policy discussions.
“The future of Nigeria will be built by states, project by project, and partnership by partnership,” he added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X