During a press conference at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, Finance Minister and Coordinating Minister of the Economy, Wale Edun, clarified that the Federal Government led by Tinubu has not taken any loans from the Central Bank of Nigeria (CBN).

Edun assured reporters that the government is actively addressing the issue of excess liquidity in the system through the implementation of effective Ways and Means. He emphasized that both fiscal and monetary authorities are working in tandem to combat inflation and maintain price stability. The ultimate goal is to lower interest rates, enabling investors to access affordable loans and stimulate the economy.

“We aim to reduce our reliance on borrowing and focus more on domestic resource mobilization. Our objective is to secure long-term resources to avoid repayment and refinancing pressures,” stated Edun.

Highlighting a low tax-to-GDP ratio in Nigeria, which falls even below the regional average in Africa, the Minister shared that reforms are underway to streamline the tax structure. These reforms include leveraging technology and implementing policies to double tax revenue within the next three years.

“At only 10 percent of GDP, it appears that some individuals are not fulfilling their tax obligations,” added Edun.

The government is committed to enhancing tax compliance and ensuring a more robust revenue base to support sustainable economic growth and development.