FG to curb borrowing by driving investment, domestic revenue - Edun

By Denis Matthew

The Federal Government has signaled a strategic shift away from debt accumulation, unveiling plans to significantly ramp up investment and strengthen domestic revenue generation to reduce Nigeria's reliance on borrowing.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this disclosure during an interview with Bloomberg Television at the ongoing 56th World Economic Forum (WEF) in Davos, Switzerland.

Edun stated that the administration's primary fiscal focus is now on domestic resource mobilization.

"The government’s current focus is on improving revenue generation through domestic resource mobilisation rather than accumulating more debt. We’re hoping to rely less on borrowing," he said.

While clarifying that Nigeria retains access to international capital markets if absolutely necessary, the Minister emphasized that the priority is to fortify internal revenue sources to enhance fiscal sustainability.

He explained that ongoing economic reforms are specifically designed to expand the tax base, improve compliance, and ensure long-term stability in public finances, particularly amidst volatile global economic conditions.

Since assuming office in 2023, President Bola Tinubu’s administration has implemented sweeping economic reforms, including the removal of the fuel subsidy, the unification of foreign exchange windows, and a comprehensive overhaul of the tax system.

Edun noted that the government has set an ambitious target to increase tax collection to approximately 18 percent of Gross Domestic Product (GDP) by next year, up from the current level of roughly 14 percent.

The Minister stressed that these policies are essential for modernizing the economy and restoring investor confidence. He pointed to early signs of progress, citing the International Monetary Fund’s (IMF) recent upward revision of Nigeria’s growth projection to 4.4 percent for 2026, against an estimated 4.2 percent in 2025.

The IMF attributed this improved outlook to fiscal reforms that are expected to stabilize revenue collection, despite the challenge of weaker global oil prices.

Edun further noted that Nigeria’s engagement at the World Economic Forum is centered on addressing critical investor concerns regarding inflation, foreign exchange stability, policy consistency, and fiscal discipline.