The Minister of Budget and National Planning Udoma Udo Udoma on Tuesday said the federal government was targeting economic growth of at least 7 percent a year by 2020.
Nigeria’s economy is heavily dependent on exports of crude oil and is undermined by decades of endemic corruption. It has been hobbled by low global oil prices that have slashed government revenues and the availability of foreign currency.
In the third quarter of 2016, gross domestic product contracted 2.24 percent from a year earlier.
With inflation also at an 11-year high, frustration is rising, with protesters taking to the streets of Lagos on Monday to call for a change in government.
The 7 percent target for gross domestic product growth is part of a medium-term economic recovery plan that seeks to address some of Nigeria’s issues, the budget ministry said in a statement.
“Our goal is to have an economy with low inflation, stable exchange rates, and a diversified and inclusive growth,” Udo Udoma said at an economic forum on Monday, where he addressed private enterprise, according to the statement.
The plan’s priorities are agriculture and food security, energy, small businesses and industrialisation and stabilising the macroeconomic environment, the minister said.
“Nigerian growth faces various supply constraints including fuel, power, foreign exchange, and even business unfriendly regulation,” the statement said, adding that the recovery plan would seek to address these issues.
But the federal government has concluded all plans to raise about 142.43 billion naira ($453.60 million) in short-dated Treasury bills at an auction on Feb. 15, the central bank said on Tuesday.
The bank said it would raise 32.43 billion naira in three-month debt, 30 billion in six-month bills and 80 billion in one-year notes, using a Dutch auction system. Payment will be due the day after the auction.
Nigeria issues Treasury bills to fund its budget deficit, manage banking system liquidity and curb rising inflation.
Last week, Nigeria raised a total of 302.4 billion naira in Treasury bills, more than the 242 billion planned due to strong demand for the one-year debt. The central bank at the auction offered a yield above its benchmark interest rate to lure investors in the face of galloping inflation.
Its annual inflation rate rose in December to 18.55 percent, its highest for more than 11 years and the eleventh straight monthly rise.