By 
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has reaffirmed the government’s commitment to respecting the statutory limits on borrowing from the Central Bank of Nigeria (CBN) through Ways and Means, emphasizing President Bola Ahmed Tinubu’s dedication to maintaining the autonomy of the CBN.
This announcement coincided with Mr. Edun’s recent appointment as the Chairman of the African Governors’ Forum by the World Bank, marking a significant milestone for Nigeria, as this is the first time in 60 years that the country has assumed this role.
In his statement during a press conference at the conclusion of the 2023 Annual Meetings of the International Monetary Fund and the World Bank in Marrakech, Morocco, Mr. Edun stressed President Tinubu’s unwavering commitment to the rule of law and his promise not to exceed the statutory limits on borrowing. He clarified that adhering to these limits translates to overdraft borrowing from the central bank.
Furthermore, Mr. Edun indicated that the government is actively working towards returning to a more controlled borrowing environment after a period of seemingly uncontrolled borrowing.
Regarding the ongoing discussions with the World Bank concerning a $1.5 billion budget support, he emphasized that the World Bank offers funding at the most favorable rates, making it the cheapest option available. He expressed optimism that this funding would be secured soon.
Highlighting the significance of recent reforms and the commitment to economic recovery, Mr. Edun underscored the government’s determination to attract both domestic and foreign investments. He acknowledged that the bold steps taken by Nigeria have positioned the country at the forefront for potential investors, fostering job creation and economic growth while promoting inclusivity among women and young people.
Mr. Edun also touched upon the government’s initiatives to address the challenges of high interest rates, curbing smuggling of petroleum products, and transitioning to cleaner and more affordable energy sources. These efforts have contributed to a 30% reduction in the smuggling of petroleum products across the border, a notable achievement in the government’s journey to eliminate fuel subsidies.
Moreover, he discussed various topics that were addressed during the meetings, such as debt burdens, capital flow reversals, poverty eradication, climate change, and rising borrowing costs. Mr. Edun underlined the importance of multilateral cooperation to address debt challenges and support initiatives like the G20 Common Framework and the Global Sovereign Debt Roundtable.
He also emphasized the need for a robust framework to enhance global liquidity for settling balance of payments and fiscal crises while reducing borrowing costs. During the meetings, Mr. Edun commended the international community for their responses and progress in implementing various frameworks and roadmaps, showing global recognition of Nigeria’s reform efforts aimed at economic recovery and private sector development.
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