Nigeria requires double-digit GDP growth rate to achieve investment grade status

Minister of State for Budget and Economic Planning, Dr Doris Uzoka-Anite,  says Nigeria must have a double-digit Gross Domestic Product (GDP) growth rate to achieve investment grade status. She made the observation in a keynote address at DataPro’s 6th International Rating Webinar held on Friday.

The minister, who was represented by Adeyemi Adeniran, the Statistician-General of Nigeria, said the current gdp growth rate of less than 4% was inadequate to achieve investment grade status.

She also said Nigeria needs to address its structural and economic weaknesses like macroeconomic instability, poor productive capacity, poor credit rating and high debt service, amongst others, to achieve strong investment grade status.

The minister said these are part of the five essential pillars to qualify for investment grade status. She listed the five pillars as strong fiscal position and domestic revenue, Debt sustainability and liability management, economic diversification, institutional stability and inclusive growth.

Dozie-Anite, however, said Nigeria was already addressing these challenges with the economic reforms introduced by President Bola Tinubu at the onset of his administration in 2023. She said the economic reforms were also introduced to check the noticeable weaknesses in the economy and put the country on the path of achieving a $1 trillion economy by 2030.

The minister said the National Development Plan 2026- 2026 was also providing the framework for building a more diversified, resilient and competitive economy. She said these efforts were also relevant in the pursuit of investment grade status –

“Nigeria’s aspiration to achieve investment-grade, sovereign credit quality, is consistent with its broader ambition to build productive- responsible debt management, economic diversification, improved infrastructure, greater private sector investment, higher productivity and credible institutions,” she said.

Dozie-Anite said Nigeria possesses significant economic resources like a large market, abundant human and mineral resources, dynamic private sector and growing digital economy to achieve a strong investment grade status.

“The challenge is for us to convert these advantages into sustainable investments, productivity and inclusive growth. As Nigeria advances towards 2030, the success of our ambition will ultimately depend on the strength of our ability to translate these advantages into development plans,” she said.