Edun: Fed Govt Will Rely Less on Borrowing to Drive Growth
The Federal Government says it plans to cut down on borrowing and shift its focus to using domestic resources and investment to fuel economic growth, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has declared. His comments came during an interview with Bloomberg Television at the ongoing World Economic Forum (WEF) in Davos, Switzerland.
Edun said the government’s fiscal strategy now prioritises revenue generation and mobilisation of domestic resources over external borrowing. While Nigeria will still have access to international capital markets if needed, borrowing will no longer be the first option for financing development. “The issue now is to focus on revenue, focus on domestic resource mobilisation. We’re hoping to rely less on borrowing,” he stated.
Domestic Revenue and Investment Focus
According to the minister, Nigeria is intensifying efforts to boost revenue through tax reforms, improved collection systems, and policies designed to expand the country’s fiscal space. These efforts are aimed at strengthening fiscal sustainability and reducing the public sector’s dependence on debt.
Edun also highlighted ongoing discussions with foreign investors, pointing to potential investment partnerships, especially from wealthy regions like the Middle East, as part of strategies to attract private capital. The government’s broader economic reforms, he said, are aimed at strengthening investor confidence and showcasing Nigeria as a stable and investible destination.
Economic Reforms Underpinning the Shift
Since 2023, President Bola Ahmed Tinubu’s administration has implemented several major economic policy shifts, including removing currency restrictions, ending fuel subsidies, and overhauling the nation’s tax framework. These measures are designed to increase federal revenue and reduce reliance on external debt financing.
Nigeria’s tax-to-GDP ratio is expected to rise significantly in the near term, a development that officials say will support the government’s aim of reducing borrowing and promoting sustainable growth.
Macroeconomic Context
The International Monetary Fund (IMF) recently upgraded Nigeria’s growth outlook for 2026, citing the impact of ongoing reforms despite global economic pressures. This positive projection reflects growing optimism about Nigeria’s economic trajectory amidst a period of fiscal consolidation and enhanced revenue mobilisation efforts.
As the government pushes for a stronger domestic revenue base and greater private sector participation, Edun’s statements at the WEF underline a broader strategic shift in Nigeria’s economic policy — moving from reliance on borrowing toward investment-led growth and internal funding.