Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said the Federal Government is committed to reducing its reliance on borrowing while intensifying efforts to attract investment into the Nigerian economy.
Edun spoke in an interview with Bloomberg TV on the sidelines of the World Economic Forum in Davos, Switzerland, on Tuesday.
He explained that although Nigeria’s budget deficit appears wider on paper following approval by the National Assembly, the administration of President Bola Ahmed Tinubu is focused on fiscal consolidation after implementing key economic reforms.
“On paper, we have a wider budget deficit because we’ve got the approval of the National Assembly,” Edun said. “But the commitment of President Bola Ahmed Tinubu under the Renewed Hope Agenda, having removed major distortions and stabilised the economy, is to consolidate, rely less on debt, and drive investment.”
According to the minister, Nigeria’s participation at the Davos forum is aimed at showcasing the country’s improved macroeconomic stability and renewed attractiveness to investors.
“We’re here in Davos to tell the Nigerian story and to show how investible Nigeria is now that we have a stable macroeconomic environment,” he said.
Edun noted that while Nigeria still has room to issue another Eurobond, any decision to return to the international debt market would depend on market conditions and strict adherence to borrowing guidelines.
“You have to be within your rules, regulations and margins for borrowing, and the timing has to be right,” he said. “We’re hoping to rely less on borrowing, but we’ll see what happens. We do have the latitude to come to the market.”
He added that although Nigeria was well received during its last Eurobond issuance, the government’s current priority is boosting investment, particularly domestic investment, and increasing local savings to support economic growth.
(Daily Trust)
