There Won't Be Any Borrowing To Boost The Economy Of Nigeria - FG

Wale Edun

According to Wale Edun, minister of finance and coordinating minister for the economy, the federal government has no plans to borrow money from either domestic or international institutions.

On Monday, August 28, 2023, in Abuja, he spoke with reporters from the state house after the first Federal Executive Council (FEC) meeting.

The minister stated that the advantages of eliminating the gasoline subsidy would be reinvested in a number of industries to increase government revenue and enhance the economic climate.

"Clearly, the federal government is not in a position to borrow at this time. Rather, the emphasis has to be on creating a stable, macroeconomic environment. Stable inflation, stable exchange rate, an environment within which people can come and invest and thereby increase production and further grow the economy. Improve and create jobs and reduce poverty.

"So, all reforms at this time aim to focus on what we call equity to focus on investment to attract investment by Nigerians. Investment by foreign direct investors and even investment by portfolio investors that want to invest in the financial aspects of the Nigerian economy, such as the stock market, such as the bond market.

"So that is the plan. That is the expectation and it is that there will not be a reliance on borrowing. Rather, as revenues increase, as the benefit of removing fuel subsidy and the subsidy on the exchange rate, those mean more money for the government at all levels.

"Because, of course, through oil revenue, the federation earns dollars and if those dollars are feeding through, at let's say, 700/750 or so naira to one dollar as opposed to 460 where it was before; clearly, that is repairing the finances of government at federal, state and local government levels.

"Per capita has fallen steadily, inflation is at 24 per cent, unemployment is high, you know they are rebasing the way in which it's calculated. Either way, it is high and youth unemployment is even unacceptably high. These are the key metrics that we have met.

"We met a bad economy and the promise of Mr. President is to make it better," Edun said.