Minister of Finance and Coordinating Minister of the Financial system, Wale Edun, says Nigeria is positioning itself to have interaction the worldwide financial system by way of mutually helpful partnerships amid rising tariffs from the USA on nations.
Edun spoke on Tuesday throughout an interview with Bloomberg TV on the World Financial Discussion board (WEF) annual assembly in Davos, Switzerland, the place world commerce tensions and geopolitical uncertainty dominated discussions.
His remark follows world concern about U.S President Donald Trump’s commerce posture.
Simply days earlier than heading to the WEF, Trump shocked European leaders by threatening to slap punitive tariffs on allies, together with the UK, in the event that they fail to again his plan to annex Greenland.
Nigeria chooses pragmatism over alarmism
Responding to a query on whether or not Nigeria was nervous about an “imperialist America,” significantly round strategic belongings and assets, Edun stated the federal government is approaching the scenario with optimism and pragmatism.
“We attempt to be constructive and have a look at it that as a rustic that has assets, that has crucial minerals, perhaps we’ll be requested to do a transaction that can be mutually helpful. That’s the best way we have a look at it,” he stated.
Edun warned that rising protectionism and a retreat from multilateralism may negatively have an effect on rising markets similar to Nigeria.
“With commerce, usually, nations like Nigeria, rising markets, can count on to profit from rising commerce, which can result in elevated output,” he stated.
“So in a scenario the place the world is fragmenting… we fear that that can result in much less commerce, much less progress, and naturally much less alternative for nations similar to ours and fewer funding.”
He famous that extended world fragmentation may finally weaken financial progress and social outcomes worldwide.
Authorities shifts focus from borrowing to funding
On Nigeria’s borrowing plans amid a projected wider funds deficit, Edun stated the Tinubu administration is intentionally decreasing reliance on debt and prioritising investment-led progress.
“The dedication of President Bola Ahmed Tinubu below his renewed hope agenda… is to consolidate and in reality to rely much less on debt and to try to drive funding,” he stated.
He added that Nigeria’s presence in Davos was aimed toward repositioning the nation as a lovely funding vacation spot.
“We’re right here in Davos to inform the Nigerian story and to indicate how investable Nigeria is now that we have now a secure macroeconomic surroundings,” Edun stated.
Eurobond issuance stays an possibility
Requested about the opportunity of additional Eurobond issuance, Edun stated Nigeria has the pliability to entry the market however burdened that borrowing choices would rely upon market circumstances and timing.
“If you wish to go to the market, initially, the market needs to be receptive… and naturally the timing needs to be proper,” he stated.
He famous, nevertheless, that the federal government’s emphasis stays on mobilising home and international funding fairly than rising debt.
Tackling Nigeria’s excessive debt-to-revenue ratio
Edun acknowledged considerations about Nigeria’s excessive debt-to-revenue ratio, describing income mobilisation as the federal government’s main focus.
“The problem is now to give attention to income, give attention to home useful resource mobilization,” he stated.
He cited ongoing tax reforms aimed toward rising Nigeria’s tax-to-GDP ratio.
“We have now a tax reform regime… meant to assist enhance the tax to GDP ratio from fairly a low 13% now to drive it as much as about 18% within the nearest future,” Edun stated.
He additionally highlighted the function of automation and know-how in blocking income leakages and enhancing effectivity.
What you must know
Financial forecasts point out Nigeria’s reforms are exhibiting early indicators of progress.
The Worldwide Financial Fund upgraded Nigeria’s progress forecast to 4.4% for 2026, up from an estimated 4.2% in 2025.
Authorities reforms are anticipated to additional stabilize income assortment and help fiscal sustainability.
