FG dedicated to attracting funding into Nigerian economic system, lowering reliance on borrowing — Finance Minister

Minister of Finance and Coordinating Minister of the Economic system, Wale Edun, has mentioned the Federal Authorities is dedicated to lowering its reliance on borrowing whereas intensifying efforts to draw funding into the Nigerian economic system.

Edun spoke in an interview with Bloomberg TV on the sidelines of the World {Economic} Discussion board in Davos, Switzerland, on Tuesday.

He defined that though Nigeria’s funds deficit seems wider on paper following approval by the Nationwide Meeting, the administration of President Bola Ahmed Tinubu is concentrated on fiscal consolidation after implementing key {economic} reforms.

“On paper, we have now a wider funds deficit as a result of we’ve acquired the approval of the Nationwide Meeting,” Edun mentioned. “However the dedication of President Bola Ahmed Tinubu underneath the Renewed Hope Agenda, having eliminated main distortions and stabilised the economic system, is to consolidate, rely much less on debt, and drive funding.”

In response to the minister, Nigeria’s participation on the Davos discussion board is aimed toward showcasing the nation’s improved macroeconomic stability and renewed attractiveness to traders.

“We’re right here in Davos to inform the Nigerian story and to point out how investible Nigeria is now that we have now a secure macroeconomic atmosphere,” he mentioned.

Edun famous that whereas Nigeria nonetheless has room to challenge one other Eurobond, any choice to return to the worldwide debt market would depend upon market situations and strict adherence to borrowing tips.

“You must be inside your guidelines, laws and margins for borrowing, and the timing must be proper,” he mentioned. “We’re hoping to rely much less on borrowing, however we’ll see what occurs. We do have the latitude to come back to the market.”

He added that though Nigeria was properly obtained throughout its final Eurobond issuance, the federal government’s present precedence is boosting funding, notably home funding, and rising native financial savings to help {economic} progress.