Report on Nigeria’s Economic Strategy and Alignment with Sustainable Development Goals

Advancing National Development through Enhanced Budgetary Allocation and Infrastructure Investment

A report from the Lagos Chamber of Commerce and Industry 2025 Mid-Year Review and Outlook Conference indicates a strategic push by the federal government to align its economic policies with key Sustainable Development Goals (SDGs). The Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, advocated for a significantly larger national budget for 2026 to address critical development challenges.

• Targeting SDG 9 (Industry, Innovation and Infrastructure): The primary rationale for an expanded budget is to finance the nation’s substantial infrastructural deficits. This investment is positioned as the foundational step for broad-based economic and social development.
• Addressing SDG 1 (No Poverty): A direct correlation was drawn between infrastructural development and the alleviation of multidimensional poverty. The strategy aims to rescue a significant portion of the 130 million Nigerians currently affected, with projections suggesting that targeted infrastructure projects could lift 20 to 30 million people out of poverty in the near term.
• Supporting SDG 11 (Sustainable Cities and Communities): By concentrating federal and state-level investment on infrastructure, the government aims to improve the quality of life and create more resilient and sustainable communities across the nation.

Transitioning to a Diversified and Sustainable Economy

The economic outlook presented points towards a structural transformation of the Nigerian economy, moving away from historical dependencies and towards a more sustainable and self-reliant model. This transition is marked by several key policy shifts and economic trends.

1. Promoting SDG 12 (Responsible Consumption and Production): Nigeria is actively working to reduce its reliance on foreign refined petroleum products, with a stated goal of achieving zero importation. This policy, coupled with a 50% reduction in crude oil exports in 2024, is designed to bolster domestic refining capacity. This shift supports sustainable production patterns by localizing the value chain.
2. Fostering SDG 8 (Decent Work and Economic Growth): The economy is showing signs of diversification. In 2024, cocoa emerged as the second-highest foreign exchange earner, demonstrating a move towards a more robust and varied economic base that is less vulnerable to global oil price volatility. The “Buy Made in Nigeria” policy further stimulates local industries, creating jobs and fostering inclusive growth.
3. Strengthening SDG 7 (Affordable and Clean Energy): By processing crude oil locally, Nigeria aims to ensure energy security and stabilize domestic supply, contributing to the goal of providing reliable energy for its population and industries.

Strengthening Governance through Fiscal Policy and Tax Reforms

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, outlined comprehensive reforms aimed at strengthening public finance and governance structures, which are essential for achieving the SDGs.

• Enhancing SDG 17 (Partnerships for the Goals): The committee is focused on maximizing domestic resource mobilization. This includes optimizing revenue from Government Owned Enterprises (GOEs), with entities like the NNPC Limited projected to yield $10-$15 billion annually, and leveraging government assets, estimated at N100 trillion, to generate sustainable income for development financing.
• Reinforcing SDG 16 (Peace, Justice and Strong Institutions): A major focus of the reform is to address systemic issues of multiple taxation and a lack of transparency at the local government level. By creating a new governance system for revenue administration and demanding accountability through publicly available budgets and audited accounts, the committee aims to build effective, accountable, and transparent institutions at all levels of government.

SDGs Addressed in the Article

• SDG 1: No Poverty – The article directly addresses the issue of multidimensional poverty in Nigeria and the government’s plan to significantly reduce it.
• SDG 8: Decent Work and Economic Growth – It discusses the emergence of a “new economy,” diversification from crude oil, growth in other sectors like cocoa and the creative economy, and policies like “Buy Made in Nigeria” to foster local businesses.
• SDG 9: Industry, Innovation and Infrastructure – The core strategy proposed for poverty reduction and economic development is massive investment in financing “huge infrastructural deficits.”
• SDG 16: Peace, Justice and Strong Institutions – The article details efforts to reform fiscal policies, improve government accountability, and establish transparent governance systems, particularly at the local government level.
• SDG 17: Partnerships for the Goals – It highlights the work of the Presidential Committee on Fiscal Policy and Tax Reforms, which focuses on strengthening domestic resource mobilization through improved tax collection and revenue generation from government assets.

Specific Targets Identified

1. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.
     
     Explanation: The article explicitly mentions the government’s goal to rescue “130 million Nigerians… trapped in a vicious circle of multidimensional poverty” and projects that this number “could have dropped significantly, maybe by 20 million or 30 million” through its planned investments.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.
     
     Explanation: The article points to economic diversification by highlighting that “cocoa was the second highest foreign exchange earner after crude oil in 2024,” with exports growing from $800 million to $2.6 billion. It also mentions the “creative economy is having a larger chunk of the economy.”

3. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.
     
     Explanation: Dr. Fasua states that multidimensional poverty is “solely, about the level of Nigeria’s infrastructural development” and advocates for a “much larger budget” specifically to finance “huge infrastructural deficits.”

4. SDG 16: Peace, Justice and Strong Institutions

   • Target 16.6: Develop effective, accountable and transparent institutions at all levels.
     
     Explanation: The Presidential Committee on Fiscal Policy and Tax Reforms is working on “proposing constitutional amendments around the issues of fiscal federalism… and accountability of money collected by government.” Mr. Oyedele criticizes the lack of transparency, stating, “you will not find any budget or audited accounts of any local government online,” which the committee aims to address.

5. SDG 17: Partnerships for the Goals

   • Target 17.1: Strengthen domestic resource mobilization… to improve domestic capacity for tax and other revenue collection.
     
     Explanation: The committee’s work focuses on fiscal reforms with an “emphasis on revenue, spending and borrowing.” It aims to maximize value from government-owned enterprises (NNPC to provide $10-$15 billion annually) and government assets (estimated at N100 trillion) to increase domestic revenue.

Indicators for Measuring Progress

1. SDG 1: No Poverty

   • Indicator 1.2.2 (Implied): Proportion of the population living in multidimensional poverty.
     
     Explanation: The article provides a baseline figure of “130 million Nigerians” in multidimensional poverty and suggests a future report could measure the reduction, thus using this number as a key performance indicator.

2. SDG 8: Decent Work and Economic Growth

   • Indicator (Implied): Value and volume of non-oil exports.
     
     Explanation: The article provides specific data for cocoa exports, which “moved from $800 million in 2023 to $2.6 billion in 2024,” serving as a direct indicator of economic diversification.
   • Indicator (Implied): Reduction in petroleum product imports.
     
     Explanation: The article states that petroleum imports reduced from $25 billion to $10 billion in 2024, a saving of $15 billion, with a future target of zero imports. This measures progress in local refining and economic self-sufficiency.

3. SDG 9: Industry, Innovation and Infrastructure

   • Indicator (Implied): Government expenditure on infrastructure.
     
     Explanation: The call for a “much larger budget in 2026 to finance infrastructural development” and the mention of “money has been released to the state governments” for infrastructure imply that the size of the budget allocated to infrastructure is a key metric of progress.

4. SDG 16: Peace, Justice and Strong Institutions

   • Indicator (Implied): Public availability of government budgets and audited accounts.
     
     Explanation: The statement that “you will not find any budget or audited accounts of any local government online” highlights a key governance gap. Making these documents publicly available would be a direct indicator of increased transparency and accountability.

5. SDG 17: Partnerships for the Goals

   • Indicator 17.1.1 (Implied): Total government revenue as a proportion of GDP, by source.
     
     Explanation: The article discusses increasing revenue from various sources, including taxes, government-owned enterprises (NNPC), and government assets. The specific targets mentioned (e.g., “$10 billion and $15 billion every year” from NNPC) are indicators of domestic resource mobilization.

Summary Table of SDGs, Targets, and Indicators

Source: arise.tv