The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the government led by President Bola Ahmed Tinubu will prioritize utilizing internal resources, steering away from increasing the national debt burden amid growing concerns about debt sustainability.
Edun, at the close of the G24 Meeting, which was held within the 2023 Annual Meetings of the World Bank and the International Monetary Fund (IMF) taking place in Marrakech, Morocco, further announced the government’s intention to introduce fresh reforms that will prioritize the enhancement of revenue generation through taxation, specifically highlighting tax collection.
Furthermore, he pointed out that there is presently a lack of concessional funding, coupled with a rise in interest rates, even within multilateral organizations.
This situation is causing growing alarm over the potential impact of increasing global interest rates on the mounting debt crisis and the considerable financing gap for the developmental needs of developing nations.
Speaking further, the Minister also stated that Nigeria, as well as other emerging economies, must emphasize reforms that are centred around domestic resource mobilization, rather than seeking foreign loans to meet budgetary expenditure.
He outlined that President Tinubu’s administration is pushing for inclusive reforms that will stimulate the private sector towards robust development.
The minister also commented on the need to cut back on excessive expenditure as well as expand the tax bracket, adding that the government is implementing certain measures to guarantee efficiency in tax collection.
While speaking at the event, the Minister advocated for a third seat in the governance of international monetary bodies such as the IMF and the World Bank by African nations.
He said that Africans need more representation in these institutions to preserve the collective interest of the continent and put forward policies that are tailor-made for the conditions in Africa.