Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister for the Economy has said that Africa’s largest economy would not rely on loans to run its economy.
The Finance Minister made the submission when he appeared before the joint Senate Committee on Finance, Appropriations, National Planning, Local and Foreign Debt. The session was examining the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Edun explained why the present administration of President Bola Tinubu was wary about reliance on borrowing to finance the 2024 Budget.
Edun declared that the West African country must seize the initiative to generate adequate revenue and must be determined to reduce its current high deficit financing. In simple terms, he said the answer to the revenue question is generating more revenue.
The minister was accompanied to the session by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, and the Director General of the Debt Management Office, Ms. Patience Oniha.
Edun also declared that the best way Nigeria could fund its annual budgets was to spend more money on infrastructure that could generate revenues.
The chairman committee on finance and Senator representing Niger East, Sani Musa, had strong reservations about the 2024 revenue projections of some of the revenue-earning agencies.
Musa noted that going for external interventions would not be an option because it would further push the country to further deficit financing
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister for the Economy