FG to invest more, cut reliance on borrowing — Wale Edun

The Federal Government has announced plans to increase investment in the economy, strengthen domestic revenue generation, and reduce its dependence on borrowing.

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

Edun said the government’s current focus is on improving revenue generation through domestic resource mobilisation rather than accumulating more debt.

“The issue now is to focus on revenue, focus on domestic resource mobilisation,” he said. “We’re hoping to rely less on borrowing.”

He explained that while Nigeria still has access to international capital markets if necessary, the administration’s priority is to strengthen internal revenue sources and enhance fiscal sustainability.

According to the minister, ongoing reforms are aimed at expanding the tax base, improving compliance, and ensuring long-term stability in public finances, especially in the face of global economic pressures.

Edun noted that reducing borrowing while increasing revenue remains central to the Federal Government’s fiscal strategy, adding that domestic reforms would drive sustainable growth.

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

The government has also set a revenue target of increasing tax collection to about 18 per cent of Gross Domestic Product by next year, up from roughly 14 per cent currently.

Edun said these policies are designed to ensure long-term economic sustainability while gradually reducing Nigeria’s reliance on external debt.

He added that the reforms are also intended to modernise the economy and restore investor confidence.

Recent economic forecasts suggest early signs of progress. The International Monetary Fund (IMF) recently revised Nigeria’s growth projection upward to 4.4 per cent for 2026, compared to an estimated 4.2 per cent in 2025.

The IMF noted that the improved outlook comes despite weaker global oil prices, Nigeria’s main export and key source of foreign exchange, adding that fiscal reforms are expected to stabilise revenue collection and strengthen sustainability.

Edun said Nigeria’s engagement at the World Economic Forum would focus on addressing investor concerns around inflation, foreign exchange stability, policy consistency and fiscal discipline.

As part of its participation at WEF 2026, Nigeria will also unveil its first official national pavilion, known as Nigeria House Davos, aimed at showcasing investment opportunities and economic reforms.