The Federal Government of Nigeria has outlined a fiscal strategy aimed at reducing reliance on external borrowing and expanding domestic investment, Finance Minister and Coordinating Minister of the Economy Wale Edun said at the ongoing 56th World Economic Forum (WEF) in Davos, Switzerland on Tuesday, January 20, 2026.
His remarks emphasised a shift toward domestic resource mobilisation and revenue generation to underpin long-term fiscal sustainability.
Speaking in an interview on Bloomberg Television during the forum, Edun stated that while Nigeria retains access to international bond markets, the Federal Government’s priority is to strengthen internal revenue streams and domestic investment to support economic growth and reduce fiscal pressures linked to borrowing.
“The issue now is to focus on revenue, focus on domestic resource mobilisation. We’re hoping to rely less on borrowing,” he said.
The Davos meeting is an annual gathering of global political and economic leaders where countries present economic policies and investment priorities.
Nigeria’s participation this year aligns with ongoing macroeconomic reforms under President Bola Tinubu’s administration, which began in 2023 with the removal of currency restrictions, elimination of the fuel subsidy, and a comprehensive overhaul of the national tax framework. These reforms aim to stabilise public finances and attract investment.
Edun outlined government efforts to enhance revenue generation, including reforms expected to raise tax revenue to about 18 percent of Gross Domestic Product (GDP) from roughly 14 percent, a move seen as critical to reducing dependence on loans and improving Nigeria’s fiscal resilience.
The minister’s remarks also highlighted the need to address emerging global economic challenges, including inflation, foreign exchange volatility, and pressures on fiscal sustainability.
At Davos, Nigeria showcased its economic reforms and engaged with potential investors to attract capital inflows that would support domestic industries and infrastructure development.
Edun noted that the Federal Government remains open to international capital markets if necessary, but underscored that domestic reforms are central to fiscal policy.
Nigeria also marked its presence at the forum with the launch of its first official national pavilion, Nigeria House Davos, which serves as a platform to promote investment opportunities and engage global stakeholders.
The shift toward domestic revenue mobilisation and investment reflects the government’s broader effort to build a sustainable economic foundation. By prioritising internal resources and reducing borrowing, policymakers aim to strengthen fiscal sustainability, support employment growth and enhance investor confidence.
The strategy could also reduce vulnerability to external debt dynamics and global financial fluctuations.
As Nigeria continues to pursue fiscal reforms, the Federal Government’s message at the 2026 World Economic Forum underscores a commitment to economic resilience, investment attraction, and reduced reliance on external borrowing.
Continued engagement with investors, alongside efforts to increase domestic revenue, will be crucial as Nigeria implements its fiscal strategy and seeks to sustain economic growth.
