The Tinubu-led Federal Government of Nigeria has made it clear that they have not borrowed any money from the Central Bank of Nigeria, according to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. This statement was made during a press conference held in Washington DC, United States, as part of the ongoing Spring Meetings of the IMF and World Bank.
During the meeting with investors, Edun emphasized the government’s commitment to addressing the issue of excess liquidity in the system through the use of Ways and Means. He highlighted the collaboration between fiscal and monetary authorities in tackling inflation and stabilizing the exchange rate. The goal is to lower interest rates to encourage investment and stimulate economic growth.
In addition, Edun pointed out that Nigeria’s tax revenue as a percentage of GDP is below the African regional average, indicating the need for reforms to increase tax collection. He mentioned plans to simplify the tax system, leverage technology, and implement policies aimed at doubling tax revenue within the next three years.
“It is evident that our tax revenue is insufficient at 10 percent of GDP. We are working towards enhancing tax compliance and ensuring that everyone contributes their fair share,” said Edun.
The government’s focus is on reducing reliance on borrowing and promoting domestic resource mobilization to achieve long-term financial stability. By implementing these measures, Nigeria aims to create a conducive environment for sustainable economic growth and development.
