FG Targets External Borrowing Reduction

The federal government has reaffirmed its commitment to reducing reliance on external debt financing and promoting private sector-driven economic growth as part of its strategy for long-term fiscal stability.

The minister of finance and coordinating minister of the economy, Wale Edun, made this known during a meeting with World Bank executive director, Dr. Zainab Shamsuna Ahmed, where he emphasised Nigeria’s shift towards alternative financing sources and investment-friendly policies.

Edun acknowledged the World Bank’s role in Nigeria’s development but stressed that the government is prioritizing a business-friendly environment to encourage private-sector investments.

“Our focus is on reducing dependency on external borrowing while ensuring that Nigeria’s economic policies foster long-term, private-sector-led growth,” he stated.

Responding, Dr. Ahmed, who previously served as Nigeria’s minister of Finance, commended the country’s ongoing macroeconomic reforms, which she said have boosted fiscal stability and investor confidence.

Ahmed also highlighted the World Bank’s recent financial reforms, which have increased its lending capacity, making an additional $150 billion available over the next decade.

A key highlight of the meeting was Nigeria’s role in “Mission 300”, the World Bank’s initiative to provide electricity access to 300 million Africans.

Edun reaffirmed that power infrastructure remains a top priority for the government, as it is critical to economic growth, industrial expansion, and private-sector competitiveness.

“Electricity access is a game-changer for Nigeria’s economy, and we are committed to playing a leading role in Mission 300 to ensure sustainable development,” he said.

He further emphasised that President Bola Tinubu remains dedicated to strengthening Nigeria’s economic foundation, shifting away from external borrowing, and fostering a resilient, investment-driven economy.