Nigeria Mulls Alternative Financing for Long-term Fiscal Stability

This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, during a meeting with the World Bank Executive Director, Mrs Zainab Ahmed, Nigeria’s immediate past Minister of Finance.

He noted that the country would be promoting private sector-driven economic growth in the face of the move.

Nigeria has a debt profile of  N134.297 trillion ($91.46 billion) as of June 2024.

Domestic debt accounted for 53 per cent of the total, amounting to N71.2 trillion ($48.4 billion), while external debt made up 47 per cent, equivalent to N63.1 trillion ($42.9 billion).

In the first quarter of last year, the domestic debt stood was N65.65 trillion ($49.35 billion), accounting for 53.95 per cent of the total public debt.

The Minister emphasized Nigeria’s shift towards alternative financing sources and investment-friendly policies, acknowledging the World Bank’s role in the country’s development but stressed the government was prioritizing a business-friendly environment to encourage private-sector investments.

“Our focus is on reducing dependency on external borrowing while ensuring that Nigeria’s economic policies foster long-term, private-sector-led growth,” he stated.

Responding, Mr Edun’s guest, Mrs Ahmed, who previously served as Nigeria’s Minister of Finance under President Muhammadu Buhari, commended the country’s ongoing macroeconomic reforms, saying they have boosted fiscal stability and investor confidence.

Mrs Ahmed also highlighted the World Bank’s recent financial reforms, which have increased its lending capacity, making an additional $150 billion available over the next decade.

A key highlight of the meeting was Nigeria’s role in Mission 300— the World Bank’s initiative to provide electricity access to 300 million Africans, which Mr Edun said remains a top priority for the government, as it is critical to economic growth, industrial expansion, and private-sector competitiveness.