The Federal Government has announced plans to significantly reduce borrowing while intensifying the mobilisation of foreign and domestic investments as part of a broader strategy to accelerate economic growth.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in an interview with Bloomberg on Wednesday at the ongoing World Economic Forum (WEF) in Davos, Switzerland.

Edun said the government’s fiscal strategy now prioritises revenue generation and sustainable financing, stressing that borrowing is no longer Nigeria’s preferred option for funding development.

“The issue now is to focus on revenue and domestic resource mobilisation. We’re hoping to rely less on borrowing,” the minister said.

While noting that Nigeria remains open to international capital markets, Edun explained that the government is determined to strengthen fiscal sustainability by expanding revenue sources and reducing dependence on debt, especially amid mounting global economic pressures.

He said ongoing reforms aimed at boosting tax revenue and widening fiscal space would naturally reduce borrowing needs over time.

Edun revealed that Nigeria is actively courting private investment from wealthy regions, particularly the Middle East, citing the recently signed Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates as a key move to attract foreign capital.

“We are looking to rely more on our own resources than on international institutions. We also want to make better use of our regional market in ECOWAS and the wider African market under the African Continental Free Trade Area (AfCFTA),” he said.

The minister noted that Nigeria’s economy has shown clear improvement, growing from about two per cent in early 2023 to over four per cent in the first half of 2025. He also highlighted progress in industrialisation, pointing out that Nigeria is no longer only exporting crude oil but now refining about 650,000 barrels daily.

“In terms of value, we now take oil that used to be exported as raw crude and refine it here into fuel and other chemical products. We are getting back on the path of industrial growth,” he said.

Despite global economic headwinds, Edun maintained that Nigeria remains attractive to international partners due to its large market, natural resources, and critical minerals.

“We are confidently telling a story of real economic reform that we plan to continue. We have a large market, we have natural resources, and we now have a better environment for investment. We are ready to do business,” he said.

Looking ahead, Edun said the government aims to further raise the tax-to-GDP ratio, with a long-term goal of spending more than 20 per cent of GDP on social services and infrastructure.

He outlined key reforms under the Tinubu administration, including the removal of currency restrictions, elimination of fuel subsidies, and a comprehensive overhaul of the tax framework aimed at increasing revenue to about 18 per cent of GDP by next year, up from roughly 14 per cent currently.

At Davos, Edun is expected to engage global investors and address concerns around policy consistency, inflation, foreign exchange stability, and fiscal sustainability.

Recent forecasts point to an improving outlook. The International Monetary Fund (IMF) has 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 said ongoing reforms are expected to stabilise revenue collection and support fiscal sustainability.

Data from the National Bureau of Statistics (NBS) show that Nigeria’s public debt-to-GDP ratio stood at 39.4 per cent in the first quarter of 2025 following the rebasing of GDP. Meanwhile, the Debt Management Office (DMO) reported total public debt of ₦152.4 trillion ($99.66 billion) by the second quarter of 2025, comprising ₦71.85 trillion in external debt and ₦80.55 trillion in domestic debt.

The 2026 Appropriation Bill projects total revenue of ₦34.33 trillion, total expenditure of ₦58.18 trillion, debt servicing of ₦15.52 trillion, capital expenditure of ₦26.08 trillion, and a budget deficit of ₦23.85 trillion, representing 4.28 per cent of GDP.