The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has clarified that the President Bola Tinubu-led Federal Government has not resorted to borrowing from the Central Bank of Nigeria (CBN).
Edun made the disclosure on Thursday during an interaction with journalists following a meeting with investors at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, United States.
Addressing concerns about liquidity oversupply in the system, Edun affirmed the government’s commitment to employing ‘Ways and Means’ to tackle the issue. He emphasised the collaborative efforts between fiscal and monetary authorities to combat inflation and stabilise prices, highlighting the objective of lowering interest rates to facilitate affordable borrowing for investors and drive economic recovery.
“We will pin down Ways and Means to alleviate the pressure of excess money in the system,” stated Edun, underscoring the coordinated approach to address inflation and exchange rate stability.
The Minister stressed the importance of reducing reliance on borrowing and enhancing domestic resource mobilisation. He outlined plans for tax reforms aimed at streamlining tax structures, leveraging technology, and implementing policies to double tax revenue within the next three years.
Edun expressed concern over Nigeria’s low tax-to-GDP ratio, which stands below the African regional average. He hinted at possible tax evasion, stating, “At 10 percent to GDP, what should I say, it would appear as if some people are not paying their taxes.”
The government’s focus on domestic resource mobilisation aligns with its long-term economic strategy to minimise repayment and refinancing pressures associated with external borrowing.
