Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has clarified that the federal government has no plans to borrow funds from local or foreign sources.
He made this announcement following the inaugural Federal Executive Council (FEC) meeting on Monday in Abuja.
Edun emphasized that the government’s focus is on establishing a stable macroeconomic environment rather than relying on borrowing.
Speaking with state house correspondents after the meeting, Edun explained that the recent removal of petrol subsidies would channel additional revenue into various sectors to boost government income and enhance the business climate.
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“At this time, the federal government is not in a position to borrow. Instead, the emphasis is on creating a stable macroeconomic environment, stable inflation, stable exchange rates, and an environment conducive for investment,” Edun stated.
He emphasized that the ongoing reforms aim to encourage investment by Nigerians, foreign direct investors, and portfolio investors interested in the financial aspects of the Nigerian economy, such as the stock and bond markets.
Edun further elaborated, “The plan is not to rely on borrowing. As revenues increase due to the removal of fuel and exchange rate subsidies, the government at all levels will benefit. The increase in oil revenue, even at the adjusted exchange rate, will bolster the finances of federal, state, and local governments.”
The Minister of Finance highlighted the challenges inherited by the current administration, led by President Bola Tinubu.
He noted the high rates of unemployment and inflation that the administration is actively working to address.
Edun stated, “We met a bad economy, and the promise of Mr. President is to make it better.”