Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that the Federal Government is committed to reducing its reliance on borrowing while intensifying efforts to attract investment into the Nigerian economy.
The minister who spoke in an interview with Bloomberg TV on the sidelines of the World Economic Forum in Davos, Switzerland, on Tuesday clarified that although Nigeria's budget deficit appears huge on paper following approval by the National Assembly, the government is focused on fiscal consolidation after implementing key economic reforms.
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"On paper, we have a wider budget deficit because we've got the approval of the National Assembly," Edun said.
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"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," he added.
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."
Nigeria's debt profile
Daily Trust reports that Nigeria is indebted to the tune of N152 trillion as of half year 2025 according to the Debt Management Office (DMO).
There are projections that the debt service may exceed N160 trillion for the full year 2025 while the budget deficit in the 2026 budget is over N23 trillion.
Recently, Daily Trust's Board of Economists expressed worry on the pace of the rise of Nigeria's public debt which has risen to N152.39trn (USD99.66 billion) as of June 2025 and may exceed N160 trillion by year-end.
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It wondered if Nigeria's debt level was sustainable, even though the rise was occasioned by fresh borrowings, high domestic interest rates, and exchange-rate adjustments.
