FG to cut borrowing, optimise assets, boost private investments – Edun

…assures on monetary, fiscal policy alignment

The federal government is gradually moving away from its reliance on borrowing to finance budget deficits, and focusing on optimizing its assets and attracting private investments to drive economic growth, Wale Edun, minister of finance and coordinating minister of the economy has said.

This shift, he said, aims to reduce the country’s dependence on debt and leverage its existing resources more effectively, while also fostering a more sustainable economic environment through private sector participation.

It also marks a significant departure from previous strategies that heavily relied on borrowing to finance government activities.

Edun was speaking Thursday in Abuja at a 2-day high-level interactive session on strengthening collaboration for sustainable financial management and national development.

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The event provided a platform for top government, law makers, heads of agencies and private sector operators to
share perspectives on how to strengthen collaboration to achieve sustainable financial mangement and economic development in the country.

Edun assured that government is committed to enhancing public transparency, reducing waste and fostering accountability in public financial management, while optimising the country’s abundant resources.

“We are at that optimisation stage where there is less focus on borrowing, particularly from the commercial markets which is quite high, and more focus on optimising assets and crowding in private sector investment, whether domestic or foreign,” he stated.

He said more importantly, the government is keen in forging partnerhips, including with the private sector to drive financial sustainability.

“That’s where that financial strength will come from. A booming, prosperous private sector that delivers.”

He further noted that through collective efforts, especially between legislature and the executive, the Tinubu-led government intends to enhance public transparency, reduce waste and foster accountability in public financial management, while optimising its resources.

He expressed confidence that through collective resolve, combined with macroeconomic tools, government can chart a course to substantially lift many Nigerians out of poverty.

Doris Uzoka-Anite, Minister of state for finance, said building the $1trillion economy, as projected by President Tinubu is an enormous task, requiring a thorough and highly collaborative work.

“We recognize that achieving sustainable economic growth and ensuring sound financial management for our nation requires shared responsibility and a continuous commitment to governance,” she added.

She said that government’s foremost priority is to ensure robust, transparent fiscal policies which are in perfect alignment with the nation’s monetary policies.

According to her, the alignment is imperative as it enhances economic stability, fosters investor confidence, and ultimately maximizes national interest.

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She said: “It is through strong collaboration, particularly between the legislative and executive arms of government, that we can refine our budgetary processes, enhance fiscal discipline, and improve transparency in public financial management.

“By reducing inefficiencies, eliminating waste, and optimizing resource allocation, we can direct our collective efforts towards accelerating national development, particularly in critical sectors such as infrastructure, healthcare, agriculture, education, and social welfare.”