The Nigerian government under President Bola Ahmed Tinubu will focus more on internal resources rather than increasing its debt burden, according to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Edun made the announcement at the end of the G24 Meeting at the ongoing 2023 Annual Meetings of the World Bank and the International Monetary Fund (IMF) in Marrakech, Morocco.
He said that the government will also announce new reforms in the coming days to ensure increased revenue generation from taxation with focus on tax collections.
Edun noted that debt sustainability is an issue, particularly with rising interest rates around the world. He said that the government will focus on increasing the flow of non-debt funds, such as domestic and foreign investment.
He added that the government is also working to create an environment for domestic and foreign investors to thrive.
The minister also expressed concern about the inadequate concessional financing and rising interest rates, even within multilateral institutions. He said that these factors are contributing to a prominent debt issue and a substantial financing gap for the developmental needs of developing nations.
Edun said that the ongoing meetings focused on addressing the financing deficit faced by both Nigeria and other developing nations, advocating Nigeria to assume a more significant role in decision-making, and raising crucial concerns related to Nigeria’s inclusive growth.
He stressed the need for domestic resource mobilization, saying that Nigeria must rely on its own resources and pull itself up much more than relying on others.
Edun also called for greater representation of Nigeria and other African countries at the table where decisions are taken by international financial institutions.
Implications of the Government’s New Focus
The government’s new focus on internal resources is a positive development. It will help to reduce Nigeria’s debt burden and make the country more resilient to economic shocks.
The government’s plan to announce new reforms to increase revenue generation from taxation is also a welcome step. However, it is important to ensure that these reforms are fair and equitable.
The government’s efforts to create an environment for domestic and foreign investors to thrive are also important. This will help to boost economic growth and create jobs.
Overall, the government’s new focus on internal resources is a positive development that will help to improve Nigeria’s economic outlook.