…As Minister rules out IMF bailout
…Bets on mineral resources to navigate ‘America First’ era
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has announced a strategic shift away from external borrowing, signalling a new economic direction for the country.
Speaking to Bloomberg Television on Tuesday at the 56th World Economic Forum (WEF), the Minister stated that the era of heavy dependence on foreign debt has come to a close. He explained that the administration is targeting an increase in the tax-to-GDP ratio from 13 percent to 18 percent by next year, driven by four pro-poor tax Acts and the automation of systems designed to curb revenue leakages.
Edun remarked that the country is anchoring its economic future on vigorous domestic resource mobilisation and a revived path towards industrialisation.
“The issue now is to focus on revenue, focus on domestic resource mobilisation. We are hoping to rely less on borrowing. We are not looking for IMF assistance at the moment,” he said.
Discussing the global economic environment, Edun acknowledged the impact of the Trump administration, describing it as the only show in town. There were concerns voiced that a retreat from multilateralism could damage emerging markets. Even so, he portrayed Nigeria as a pragmatic partner prepared to negotiate workable deals.
“We worry that [fragmentation] will lead to less trade and less growth,” Edun observed. “But we try to be positive. As a country with critical minerals, maybe we will be asked to do a transaction that will be mutually beneficial. That is the way we look at it.”
Asked whether he considered the possibility of an “imperialist America” a threat, Edun maintained a buoyant stance. “We try to be positive. As a country that has resources, that has critical minerals, maybe we will be asked to do a transaction that will be mutually beneficial. That is the way we look at it,” he replied.
The Minister also disclosed that Nigeria has signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE). He presented this as a significant step towards bridging the fiscal gap without turning to multilateral loans.
Edun pointed out Nigeria’s renewed focus on industrialisation, making reference to the 650,000 barrels per day now being refined domestically, a clear nod to the Dangote Refinery as a transformative development.
He commented that Nigeria is currently exporting finished petroleum and petrochemical products rather than solely raw crude, reinforcing the shift towards value addition.
“We are back on that road to industrialisation,” he said.
Beyond natural resources, Edun promoted the Nigerian economy as investable once again, drawing attention to the stabilisation of the exchange rate and the return to industrial capacity.
“We are here to convince investors that Nigeria is investable,” he declared. “We have the large domestic market, we have the natural resources, and we are able to do a deal.”
His remarks coincided with the debut of Nigeria House Davos, the country’s first official national pavilion at the WEF. The platform has been created to reshape the narrative from a country seeking aid to one offering viable investment opportunities.
The International Monetary Fund (IMF) has appeared to validate this emerging trajectory, recently upgrading Nigeria’s growth forecast to 4.4 percent for 2026, citing the country’s restored fiscal discipline and the renewed hope reforms.
