FG Targets Reduced Debt Dependence as Edun Signals Shift in Fiscal Strategy

The Nigerian government is turning inward to finance its growth, prioritis­ing domestic revenue over external bor­rowing as a strategy to strengthen fiscal sustainability.

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

Edun said Nigeria will continue to have access to international bond mar­kets if needed, but the focus is increas­ingly on harnessing domestic resources to fund development and drive economic growth.

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

The minister highlighted ongoing reforms aimed at boosting tax revenue, improving collection, and expanding government income to support long-term fiscal sustainability.

He said, “Our emphasis is on invest­ment, particularly driving domestic investment and increasing domestic savings for investment in the Nigerian economy in order to grow it.”

He noted that there are ongo­ing discussions with potential investors in the Middle East.

Since taking office in 2023, President Bola Tinubu’s adminis­tration has implemented a series of economic reforms designed to stabilise public finances and stimulate growth.

Key measures include the re­moval of currency restrictions, elimination of the fuel subsidy, and a comprehensive overhaul of the tax framework.

Government projections in­dicate these tax reforms could lift revenue from about 14 per­cent of Gross Domestic Product (GDP) currently to 18 percent in the near term, a move expected to reduce reliance on external borrowing.

Edun also pointed to Nigeria’s successful $2.35 billion bond sale in November 2025 as evidence of continued access to international capital markets.

“We have the latitude to do an­other deal, but our priority is to strengthen domestic resources,” he said.

Economic analysts have welcomed the reforms, with the International Monetary Fund (IMF) recently upgrading Nige­ria’s growth forecast for 2026 to 4.4 percent, up from an estimated 4.2 percent in 2025, despite weaker global oil prices.

At WEF 2026, Nigeria is show­casing its first-ever official nation­al pavilion, Nigeria House Davos, as part of its efforts to engage investors and present its policy reforms on a global stage.

Edun is expected to address investor concerns over policy consistency, inflation, foreign exchange stability, and fiscal sus­tainability.

The minister also hinted at the possibility of interest rate cuts if inflation continues to ease, a move that could lower debt-servicing costs and relieve pressure on public finances.

With domestic revenue gen­eration taking centre stage, the Nigerian government is posi­tioning itself to fund economic growth from within, reducing dependency on borrowing and enhancing fiscal resilience in an uncertain global environment.