Davos: FG Aims For Less Borrowing, More Investment — Wale Edun

Davos 2026 - Nigeria’s Fiscal Shift Towards Investment and Sustainability

At the 56th World Economic Forum in Davos, Switzerland, Nigeria’s Minister of Finance, Wale Edun, delivered a clear message about the country’s evolving economic strategy.

He emphasized that the Federal Government is determined to reduce its reliance on borrowing and instead channel greater focus toward mobilizing domestic resources and driving investment.

Speaking on Bloomberg Television, Edun underscored that the priority now is revenue generation, fiscal sustainability, and reforms that strengthen the nation’s economic foundations.

Symbolic Photo

Since President Bola Tinubu’s administration took office in 2023, Nigeria has embarked on a series of bold reforms aimed at stabilizing public finances and modernizing the economy. These include the removal of currency restrictions, the elimination of the costly fuel subsidy, and a comprehensive overhaul of the tax framework.

The government’s target is to raise tax revenue to 18% of GDP by next year, up from the current level of about 14%. This ambitious goal reflects a broader vision of reducing dependence on external debt while building resilience through domestic resource mobilization.

Edun noted that while Nigeria remains open to international capital markets, the government’s preference is to rely on its own fiscal reforms to sustain growth. He highlighted that the administration is working to expand revenue generation, strengthen investor confidence, and ensure long-term economic sustainability.

These measures are designed not only to stabilize Nigeria’s finances but also to position the country as a more attractive destination for investment.

The International Monetary Fund has already recognized early signs of progress, upgrading Nigeria’s growth forecast to 4.4% for 2026, compared to an estimated 4.2% in 2025.

This projection comes despite weaker oil prices, Nigeria’s primary export and foreign-exchange earner, suggesting that reforms are beginning to diversify the economy’s revenue base.

The IMF noted that Nigeria’s combination of domestic resource mobilization and ongoing reforms is expected to further stabilize revenue collection and support fiscal sustainability.

At Davos, Edun is also addressing investor concerns around policy consistency, inflation, foreign exchange stability, and fiscal sustainability. Nigeria’s presence at the Forum is marked by the debut of its first-ever official national pavilion, Nigeria House Davos, symbolizing the country’s intent to showcase its reform agenda and attract global investment.

This shift in fiscal policy represents a significant turning point for Nigeria.

By prioritizing investment over borrowing, the Federal Government is signaling a commitment to building a stronger, more self-reliant economy that can withstand global pressures and deliver sustainable growth for its citizens.