The Federal Government has reiterated its commitment to reducing dependence on external and domestic borrowing, placing greater emphasis on strengthening domestic revenue mobilisation and investment as cornerstones of Nigeria’s fiscal strategy.
Speaking in an interview with Bloomberg Television on the sidelines of the 56th World Economic Forum (WEF) in Davos, Switzerland, Wale Edun, minister of Finance and Coordinating Minister of the Economy, said the government is pivoting toward internal resource generation to finance economic growth and support long-term fiscal sustainability.
“The issue now is to focus on revenue, focus on domestic resource mobilisation. We’re hoping to rely less on borrowing,” Edun stated, underscoring the shift in priorities at a time when global economic volatility persists.
Mr. Edun clarified that while Nigeria retains access to international capital markets, borrowing will remain a strategic option rather than the default source of financing.
He emphasised that boosting internal revenue streams, including enhanced tax collection and reforms, will be central to government policy.
The finance minister highlighted a suite of ongoing reforms aimed at reinforcing fiscal sustainability, including measures to improve tax administration, expand the tax base, and stimulate private sector engagement.
These reforms are part of a broader agenda introduced since 2023 under President Bola Ahmed Tinubu’s administration, which has focused on removing currency restrictions, eliminating costly fuel subsidies, and overhauling Nigeria’s tax framework.
Under the revised tax regime, the government anticipates increasing the tax-to-GDP ratio from roughly 14 percent to approximately 18 percent, a move analysts believe could substantially broaden the country’s fiscal space and reduce reliance on borrowing to finance budget deficits.
Economic indicators suggest early positive signs: the International Monetary Fund (IMF) recently upgraded Nigeria’s 2026 growth forecast to 4.4 percent from an estimated 4.2 percent in 2025, despite persistent pressures from subdued oil prices.
At WEF 2026, Nigeria is showcasing its first official national pavilion, Nigeria House Davos, as part of efforts to engage global investors, highlight policy reforms, and signal confidence in the nation’s fiscal trajectory.
Edun is expected to address investor concerns on issues such as policy consistency, inflation dynamics, foreign exchange stability, and fiscal sustainability.
As the government doubles down on domestic revenue efforts, policymakers and market watchers will be closely monitoring the impact of these reforms on debt dynamics, investor sentiment, and Nigeria’s broader economic recovery in a challenging global landscape.
