FG Focuses on Less Borrowing, More Investment to Strengthen Economy at Davos
Nigeria is prioritising domestic resource mobilisation and investment over borrowing, the Minister of Finance and Coordinating Minister of the Economy said at the 56th World Economic Forum in Davos, Switzerland. Speaking to global investors, he emphasised the government’s focus on revenue generation and fiscal sustainability amid mounting global economic pressures.
The minister explained that while Nigeria remains open to accessing international capital markets if necessary, the priority is to strengthen domestic reforms that increase revenue and reduce reliance on borrowing. “The issue now is to focus on revenue, focus on domestic resource mobilisation. We’re hoping to rely less on borrowing,” he stated.
Since taking office in 2023, the government has implemented several economic reforms aimed at stabilising public finances and driving growth. Key measures include removing currency restrictions, ending fuel subsidies, and overhauling the tax system. The tax reforms are expected to raise revenue to 18 percent of GDP in the coming year, up from around 14 percent currently.
These measures are designed to strengthen fiscal sustainability even as global factors, such as weaker oil prices, continue to affect Nigeria’s top export and major foreign-exchange earnings. By focusing on domestic revenue collection, the government aims to reduce debt dependence while providing a stable environment for investment.
At Davos, the government also showcased its first official national pavilion, highlighting Nigeria’s economic potential and signalling openness to investors. Officials underscored efforts to maintain policy consistency, control inflation, stabilise the foreign exchange market, and ensure long-term fiscal stability.
The combination of ongoing reforms, domestic resource mobilisation, and strategic investment is central to Nigeria’s economic strategy. By relying less on borrowing and strengthening internal revenue generation, the government hopes to build a more resilient economy capable of withstanding global economic shocks and supporting sustained growth.
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