FG to cut borrowing, focus on domestic revenue –Edun

From Adanna Nnamani, Abuja

The Federal Government has indicated plans to reduce its dependence on borrowing and place greater emphasis on mobilising domestic resources to fund economic growth.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this on Tuesday while speaking on Bloomberg Television on the sidelines of the World Economic Forum in Davos, Switzerland.

Edun said the Tinubu administration is shifting its focus to revenue generation as part of ongoing fiscal reforms aimed at strengthening Nigeria’s economy and ensuring long-term sustainability.

According to him, while Nigeria still has access to international capital markets, borrowing is no longer the government’s first option.

“The issue now is to focus on revenue and domestic resource mobilisation. We are hoping to rely less on borrowing,” the minister said.

He explained that the government is pursuing measures to expand revenue, strengthen the tax system and improve fiscal discipline in response to global economic pressures and rising financing costs.

Edun noted that Nigeria remains open to tapping international bond markets if the need arises, but stressed that internal reforms and improved revenue performance are central to the government’s fiscal strategy.

The minister’s comments come amid a series of economic reforms introduced by President Bola Ahmed Tinubu’s administration since assuming office in 2023. The reforms include the removal of fuel subsidy, liberalisation of the foreign exchange market and a comprehensive overhaul of the country’s tax framework.

According to Edun, the reforms are designed to stabilise public finances, reduce debt exposure and position the economy for sustainable growth driven by local resources rather than heavy borrowing.