Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has raised concerns over the country’s growing debt service obligations, warning that rising repayments could constrain fiscal flexibility if not urgently addressed.
Speaking on the sidelines of the World Economic Forum in Davos, Edun said the Federal Government is intensifying efforts to boost domestic revenue generation in order to reduce dependence on borrowing.
He noted that Nigeria’s current fiscal strategy is focused on expanding revenue sources through reforms in tax administration and improving collection efficiency across government agencies. According to him, the move is aimed at creating a more sustainable financing framework for national development.
The minister explained that strengthening domestic revenue mobilisation would help reduce the pressure of debt servicing on government finances while ensuring that critical infrastructure and social investments are not compromised.
Edun added that Nigeria is working towards improving its fiscal balance by cutting waste, enhancing transparency in public financial management, and prioritising productive spending.
He stressed that reducing reliance on debt financing remains key to maintaining macroeconomic stability and improving investor confidence in the country’s economic outlook.
