FG Promises Less Reliance on Borrowing

The Federal Government says it plans to reduce its reliance on borrowing while investing more in the economy through improved domestic revenue mobilisation. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the remarks while speaking on Bloomberg Television at the 56th World Economic Forum in Davos, Switzerland.

Mr Edun said the government’s priority is to focus on revenue generation and domestic resources, noting that borrowing would be minimised where possible. He said Nigeria remains open to international capital markets if necessary, but stressed that fiscal sustainability and internal reforms are central to government policy.

He explained that the approach forms part of ongoing fiscal reforms aimed at strengthening public finances, including tax reforms designed to raise revenue to about 18 per cent of gross domestic product next year, up from around 14 per cent. Other measures include the removal of fuel subsidies, changes to foreign exchange policies, and efforts to modernise the tax framework.

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The minister said Nigeria’s reform agenda is already showing early signs of progress, with the International Monetary Fund recently upgrading the country’s 2026 growth forecast to 4.4 per cent. He added that the government is using the Davos meeting to engage investors on policy consistency, inflation, foreign exchange stability, and long-term economic sustainability.