During an interaction with journalists after a meeting with investors at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, United States, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, clarified that the Federal Government under Tinubu’s leadership has not obtained any loans from the Central Bank of Nigeria, CBN.
Edun emphasized the authorities’ commitment to addressing the issue of excessive liquidity within the system by exploring Ways and Means. He highlighted the collaborative efforts of both fiscal and monetary authorities to combat inflation.
Expressing the government’s strategy, he stated, “Efforts will be made to utilize Ways and Means to mitigate the surplus liquidity challenge in the system.”
“The partnership between the two authorities aims to curtail inflation, stabilize pricing, and manage exchange rate fluctuations. This will enable us to lower interest rates, facilitating affordable borrowing for investors and steering the economy towards recovery,” he explained.
He underscored the importance of reducing the reliance on borrowing and focusing on leveraging domestic resources for sustainable financing, aiming to secure long-term resources to minimize repayment and refinancing burdens.
Edun also highlighted the inadequacy of the nation’s tax-to-GDP ratio, falling below the African region’s average. He mentioned that ongoing reforms are aimed at simplifying the tax system, leveraging technology, and implementing policies to double tax revenue within the next three years.
“At 10 percent of GDP, our tax collection seems insufficient. It appears that some individuals or entities are not meeting their tax obligations,” he commented.