By Capital Market Reforms
Nigerian government unveils plan to boost GDP, considers crude oil forward sale
Summary
- Nigeria targets increase in market capitalization from 14.3% to 25% of GDP
- New incentives to attract investment, deepen capital markets, and fund development
- Government addresses crude oil forward sale reports, says no final decision yet
Abuja, Nigeria — The Federal Government of Nigeria has unveiled a comprehensive set of initiatives aimed at strengthening the capital market and mobilizing sustainable development financing, with a goal to grow market capitalization from 14.3% to 25% of the country’s Gross Domestic Product (GDP).
The Ministry of Finance outlined a nine-point strategy that includes the issuance of long-term, high-yielding debt securities such as Special Purpose Bonds for targeted sectors like agriculture and industry.
Additional reforms involve incentivizing Environmental, Social, and Governance (ESG)-compliant products, expanding the use of SUKUK bonds, and collaborating with fintech firms to introduce innovative capital market instruments tailored for small and medium enterprises (SMEs).
Plans are also underway to boost institutional investment by increasing the participation of pension funds and insurance companies, establish a national commodity exchange with regional trading hubs, and review Non-Banking Financial Company (NBFC) regulations to improve access to credit in key sectors.
The government will also work with fund managers to create investment products for retail and diaspora investors, while enforcing stricter regulations to protect shareholders and investors.
These efforts are part of the government’s broader economic agenda to double the size of Nigeria’s economy to $1 trillion, according to the ministry. Technology will be a key enabler of this vision, enhancing efficiency across people, industries, and government to drive sustainable growth.
Meanwhile, the Ministry of Finance has responded to recent media reports regarding a potential forward sale of crude oil by the Nigerian National Petroleum Company Limited (NNPC Ltd).
In a press statement issued on June 11, 2025, the ministry clarified that while discussions are ongoing, no final decision has been made. It dismissed rumors of a collapsed deal as speculative and unfounded.
The government reaffirmed its commitment to adopting fiscally responsible and transparent strategies to optimize Nigeria’s oil assets, improve external liquidity, and reinforce macroeconomic stability.
The statement was signed by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance.
