Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has refuted claims that the Tinubu-led Federal Government has borrowed money from the Central Bank of Nigeria (CBN).
Edun made this clarification during a press briefing on Thursday, following discussions with investors at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, United States.
Addressing concerns about excessive liquidity in the system, Edun disclosed that the government’s commitment to implementing measures to manage the situation effectively.
He highlighted the collaboration between fiscal and monetary authorities to tackle inflation and stabilize the exchange rate.
“We will pin down Ways and Means to alleviate the pressure of the excess money in the system.”, he said.
“By doing so the two authorities are working hand in hand to bring down inflation and pressure on price stability and stabilizing the exchange rate, with the target of bringing down interest rates so that investors can borrow at a more affordable rate and getting the economy going in the right direction again.”
“We need to borrow less and focus more on domestic resource mobilization. We want long-term resources to avoid repayment and refinancing pressures.”
Discussing tax reforms, Edun noted that Nigeria’s tax-to-GDP ratio was significantly below the African regional average.
He outlined ongoing efforts to streamline taxation, leverage technology, and implement policies aimed at doubling tax revenue within the next three years.
Speaking on the low tax compliance rate, stating, “At 10 percent to GDP, what should I say, it would appear as if some people are not paying their taxes.”
