Tinubu Administration Shuns CBN Borrowing, Focuses on Controlling Inflation and Mobilizing Domestic Resources

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has clarified that the Tinubu government has not borrowed from the Central Bank of Nigeria (CBN). Instead, the administration is concentrating on managing liquidity in the system and reducing inflation.

During a meeting with investors at the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, Edun emphasized the importance of close collaboration between fiscal and monetary authorities to stabilize the economy. He stated, “We will address Ways and Means to alleviate the pressure of excess liquidity, thereby enabling both authorities to work hand-in-hand to bring down inflation, stabilize the exchange rate, and lower interest rates for more affordable borrowing by investors.”

Edun highlighted the need to borrow less and focus more on domestic resource mobilization. He noted that Nigeria’s tax-to-GDP ratio is currently lower than the African region average, prompting the government to implement reforms aimed at streamlining taxes and leveraging technology to double tax revenue in the next three years.

“By focusing on nine key tax heads, we aim to increase tax efficiency and collection without raising tax rates. By using technology, we can optimize revenue collection and achieve our goal of doubling tax revenue,” he added.

In terms of food security, Edun acknowledged challenges faced by farmers due to insecurity in certain parts of the country. He mentioned that the administration is working with the African Development Bank to establish agro clusters, which will help boost food production and enhance food security.

These initiatives demonstrate the Tinubu government’s commitment to promoting economic stability and growth while maintaining fiscal discipline and supporting key sectors like agriculture.