By Francis Ajuonuma
The Federal Government has signalled a significant shift in its economic strategy, placing greater emphasis on domestic revenue generation while deliberately scaling back reliance on borrowing.
Speaking on Bloomberg Television at the 56th World Economic Forum in Davos, Minister of Finance Wale Edun said the government’s priority is to mobilise domestic resources to fund growth.
According to him, the administration is intensifying efforts to boost revenue rather than lean on fresh debt, even though access to international capital markets remains an option if circumstances demand it.
Edun explained that Nigeria is pursuing fiscal reforms designed to strengthen sustainability, expand the tax base and improve revenue collection amid tightening global economic conditions.
He noted that while borrowing cannot be ruled out entirely, it is no longer the central pillar of government financing.
Since assuming office in 2023, President Bola Tinubu has rolled out wide-ranging economic reforms, including the removal of fuel subsidies, liberalisation of the foreign exchange regime and a comprehensive overhaul of the tax system.
The reforms are aimed at raising government revenue to about 18 per cent of GDP next year, from roughly 14 per cent currently.
Edun said the policies are structured to deliver long-term fiscal stability, reduce exposure to external debt and strengthen investor confidence.
Recent forecasts suggest the reforms are beginning to yield results.
The International Monetary Fund recently upgraded Nigeria’s growth projection to 4.4 per cent for 2026, from an estimated 4.2 per cent in 2025, despite weaker global oil prices.
The IMF noted that continued domestic resource mobilisation and structural reforms are expected to stabilise revenue flows and reinforce fiscal sustainability.
At the Davos meeting, Edun is expected to engage investors on concerns around inflation, policy consistency, foreign exchange stability and public finances.
Nigeria is also unveiling its first official national pavilion, Nigeria House Davos, underscoring its renewed push to attract global investment under a reform-driven economic agenda.
