TAX: FG Will Now Rely Less On Borrowing — Finance Minister

The Federal Government plans to rely more on domestic resources and reduce its dependence on borrowing.

Minister of Finance Wale Edun said this while speaking on Bloomberg Television at the World Economic Forum in Davos, Switzerland, on Tuesday.

Edun emphasized the need to focus on revenue generation.

He added that while the country could access international bond markets, if necessary, the government’s priority is to mobilize its own resources.

The minister’s remarks come as Nigeria implements fiscal reforms aimed at strengthening its economy.

What the Minister is saying 

Edun outlined the government’s efforts to raise tax revenue and strengthen fiscal sustainability amid mounting global economic pressures.

He also highlighted strategies aimed at reducing borrowing while expanding revenue generation.

“The issue now is to focus on revenue, focus on domestic resource mobilization,” he said.

“We’re hoping to rely less on borrowing,” he added.

The minister also noted that Nigeria remains open to international capital markets if needed, but domestic reforms are central to the government’s fiscal policy.

Get up to speed 

Since taking office in 2023, President Bola Tinubu’s administration has introduced several economic reforms to drive growth and stabilize public finances.

These measures include removing currency restrictions, ending a costly fuel subsidy, and overhauling the nation’s tax framework.

Tax reforms aim to raise revenue to 18% of GDP next year, up from roughly 14% currently.

Policies target long-term economic sustainability while reducing reliance on external debt.

These initiatives are part of broader efforts to modernize Nigeria’s economy and strengthen investor confidence.

What you should know 

Economic forecasts indicate Nigeria’s reforms are showing early signs of progress.