Nigerian Government Shifts Focus to Non-Debt Revenue and Announces New Reforms, Says Finance Minister

Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has declared the government’s commitment to prioritize the utilization of internal resources while moving away from increasing the national debt burden. This statement comes amid growing concerns about debt sustainability in the country.

Edun made this announcement at the conclusion of the G24 Meeting, which was held during the 2023 Annual Meetings of the World Bank and the International Monetary Fund (IMF) in Marrakech, Morocco. He also revealed the government’s intentions to introduce fresh reforms aimed at enhancing revenue generation, particularly through taxation and tax collection.

Recognizing the challenges of debt sustainability, he emphasized the need to shift the focus from borrowing and instead promote investment, both domestically and from foreign sources. Edun stated that measures to rationalize and improve the efficiency of tax revenue and domestic resource mobilization would be announced shortly.

“The money is in the rich countries. The investments, the opportunities, and the potential for business expansion are in poorer countries. Bridging these two is crucial, and Nigeria’s focus will be on creating an environment conducive to domestic and foreign investor growth,” Edun explained.

He also highlighted the absence of concessional funding and the rising global interest rates, even within multilateral organizations. This situation has raised concerns about the impact of increasing global interest rates on the mounting debt crisis and the financing gap for the developmental needs of developing nations.

Edun stressed the urgency for reforms that focus on domestic resource mobilization, rather than foreign loans, to fund budgetary expenditure. He noted that President Bola Ahmed Tinubu’s administration is promoting inclusive reforms to stimulate private sector development.

The Minister also emphasized the importance of reducing excessive expenditures and expanding the tax base. The government is taking measures to enhance tax collection efficiency.

Edun concluded by advocating for a third seat for African nations in the governance of international monetary bodies such as the IMF and the World Bank. He emphasized the need for increased African representation to address the collective interests of the continent and tailor policies to African conditions.