Wale Edun Finance minister.webp
The Digest:

Finance Minister Wale Edun has stated that the Federal Government will reduce its reliance on borrowing to finance the 2026 budget deficit, focusing instead on revenue generation and domestic resource mobilisation. According to Leadership News, the announcement was made at the World Economic Forum in Davos, Switzerland, amid Nigeria’s public debt rising to N152.40 trillion as of June 2025. Edun emphasised that while international bond markets remain accessible, the administration’s priority is strengthening tax administration, optimising government assets, and encouraging public-private partnerships to fund projects.

Key Points:
  • The shift signals an effort to address Nigeria’s rising debt burden, which stood at N152.4 trillion as of mid‑2025.
  • Reduced borrowing could ease fiscal pressure and lower future debt‑servicing costs, which currently exceed allocations for key sectors.
  • Revenue‑focused reforms may affect businesses and taxpayers through improved enforcement rather than new taxes.
  • Successful implementation could improve Nigeria’s fiscal sustainability and investor confidence in the medium term.
  • The plan’s timing aligns with ongoing economic reforms, including fuel subsidy removal and exchange rate liberalisation.

Sources: Leadership News