Nigeria's Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has affirmed the Federal Government's dedication to curbing its reliance on borrowing and intensifying efforts to draw investment into the Nigerian economy. Speaking to Bloomberg TV on the sidelines of the World Economic Forum in Davos, Switzerland, Edun elaborated on the administration's fiscal strategy.

Despite a seemingly wider budget deficit on paper, approved by the National Assembly, President Bola Ahmed Tinubu's administration is firmly focused on fiscal consolidation. This strategic shift follows the implementation of significant economic reforms aimed at removing major distortions and stabilizing the economy. The core commitment under the 'Renewed Hope Agenda' is to consolidate economic gains, reduce dependence on debt, and vigorously drive investment, particularly domestic investment.

Nigeria's participation at the Davos forum served as a platform to highlight the nation's enhanced macroeconomic stability and its renewed appeal to investors. Edun emphasized, "We're here in Davos to tell the Nigerian story and to show how investible Nigeria is now that we have a stable macroeconomic environment." While acknowledging Nigeria's capacity to issue another Eurobond, the minister clarified that any decision to re-enter the international debt market would be contingent on favorable market conditions and strict adherence to established borrowing guidelines and margins.

The government's immediate priority, however, is not external borrowing but rather stimulating investment, especially domestic capital, and fostering increased local savings to underpin robust economic growth. The minister outlined a comprehensive strategy for reducing Nigeria’s debt-to-gross domestic product (GDP) ratio, shifting the focus towards aggressive revenue generation.

Nigeria's public debt-to-GDP ratio stood at 39.4 percent in the first quarter of 2025, post-rebasing of the GDP by the National Bureau of Statistics. The International Monetary Fund (IMF) projects this ratio to decrease to 35 percent by 2026. To achieve this, Edun stated, "the issue is to focus on revenue; we’re focused on domestic resource mobilisation." This includes the introduction of a new tax reform regime, comprising four tax acts, designed to elevate the tax-to-GDP ratio from a current low of 13 percent to 18 percent in the near future. Additionally, the government plans to leverage automation and technology to enhance internal revenue collection, effectively blocking leakages and loopholes often found in manual systems.

Recognizing that the private sector contributes approximately 90 percent of the GDP, the current administration, supported by an improved incentive framework, is encouraging Nigerians, the diaspora, and foreign investors to increase consumption, savings, and investment. Edun also mentioned exploring investment opportunities in "cash rich" regions like the Middle East.