The Federal Government of Nigeria plans to prioritize domestic resource mobilization and reduce reliance on external borrowing as part of its ongoing fiscal reforms, Finance Minister Wale Edun said on Tuesday.
Speaking to Bloomberg Television during the 56th World Economic Forum in Davos, Edun emphasized the shift toward strengthening internal revenue generation to support long-term economic sustainability.
“The issue now is to focus on revenue, focus on domestic resource mobilization,” he stated. “We’re hoping to rely less on borrowing.”
While acknowledging Nigeria’s access to international bond markets when necessary, Edun stressed that the government’s core strategy centers on enhancing tax collection and fiscal resilience amid global economic challenges.
The minister highlighted ongoing efforts to modernize the economy through tax reforms aimed at increasing revenue from about 14% of GDP to 18% by next year. These measures build on President Bola Tinubu’s administration’s key reforms since 2023, including the removal of currency restrictions, elimination of the fuel subsidy, and a comprehensive overhaul of the tax system.
Edun noted that these initiatives are designed to reduce dependence on external debt, stabilize public finances, and boost investor confidence in Nigeria’s long-term growth prospects.
The International Monetary Fund has shown optimism about Nigeria’s trajectory, recently upgrading the country’s growth forecast to 4.4% for 2026 from an estimated 4.2% in 2025, despite softer oil prices.
“The combination of domestic resource mobilization and ongoing reforms underscores Nigeria’s effort to reduce debt dependence and strengthen its economic foundations,” the IMF said.
At Davos, Edun is expected to engage investors on issues such as policy consistency, inflation management, foreign exchange stability, and fiscal sustainability.
In a significant move to showcase Nigeria’s economic story, the Federal Government will debut its first official national pavilion, Nigeria House Davos, at this year’s World Economic Forum.
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