Nigeria is moving away from costly foreign borrowing in favor of private capital and domestic reforms, according to Wale Edun, Minister of Finance and Coordinating Minister of the Economy. Edun spoke at the G-24 Technical Group Meeting in Abuja, which focused on mobilizing finance for sustainable economic transformation.
“Nigeria is deliberately shifting away from a model overly reliant on expensive external borrowing toward a more resilient growth framework powered by domestic reforms, private capital, and diversified financing instruments,” Edun said during his keynote address.
He explained that this approach aligns with global trends emphasizing innovative financing methods. Nigeria aims for an average medium-term growth rate of 7 percent, which will require increasing the investment-to-GDP ratio to at least 30 percent. Currently, public sector financing capacity stands at about 5 percent of GDP. The strategy includes attracting private capital through structured public-private partnerships (PPPs), optimizing public assets, and creating investment opportunities designed to reduce risk.
Edun described Nigeria’s reform program under President Bola Tinubu as following a three-phase agenda: market correction, stabilization, and growth acceleration. He noted that “bold, politically difficult but necessary reforms aimed at restoring macroeconomic stability” have been implemented over the past two years and are starting to show results. “The reform path has attracted global recognition, and investor sentiment is steadily recovering. This renewed confidence according to him is reflected in the return of significant capital commitments to Nigeria,” he added.
The minister also discussed risks in the current global environment such as fragmentation and geopolitical rivalry. He warned that further geoeconomic confrontation could lower global output by two percentage points and reduce world trade by 2.3 percent. Emerging markets face particular challenges; more than a quarter have lost access to international capital markets while over half of low-income countries are dealing with or nearing debt distress.
Edun highlighted ongoing tax reforms intended to increase Nigeria’s tax-to-GDP ratio to 18 percent in the medium term through updated tax laws, improved compliance measures, automation efforts like the National Single Window initiative.
“The era of waiting for trickle-down prosperity from the North has passed. The future belongs to regions that collaborate, innovate, and integrate with purpose,” Edun stated while urging Global South countries to strengthen cooperation.
He called on G-24 members to advocate changes in global financial systems including strengthening IMF safety nets and expanding concessional lending by multilateral development banks as well as prioritizing local currency financing—reforms he said are vital for supporting nations shut out from international capital markets and closing Sustainable Development Goals funding gaps.
Central Bank Governor Olayemi Cardoso addressed challenges facing emerging economies and emphasized policy coordination alongside mutual trade and investment for resilience building. He also pointed out Nigeria’s work on modernizing its regulatory frameworks—especially payment infrastructure oversight—and anti-money laundering improvements. Cardoso stressed transparency and cooperation among African nations as key elements for resilient financial systems.
Dr Iyabo Masha, Director and Head of Secretariat of the G-24, opened the meeting noting that while some inflationary pressures have eased globally, conditions remain fragile: “resilience is not the same as robustness.” She cited projections showing only modest growth in global merchandise trade for 2026 due partly to tariffs and uncertainty—factors expected to dampen external demand—and mentioned rising debt service obligations with external public debt service reaching $487 billion in 2023.
Masha identified near-term risks such as renewed inflation shocks or supply disruptions along with tighter financial conditions worldwide. She urged policymakers to improve fiscal frameworks, boost domestic resource mobilization efforts, prioritize climate adaptation policies alongside human capital development initiatives, and strengthen regional trade partnerships.