The Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that Nigeria was deliberately shifting from expensive external borrowing to a growth model anchored on private capital and domestic reforms.
The Minister stated this at the opening session of the G-24 Technical Group Meeting with the theme: “Mobilizing Finance to promote sustainable, Inclusive, and Job – Rich Economic Transformation” held today in Abuja.
Edun, while delivering a keynote address on the global economy and the need for stronger South-South cooperation said “Nigeria is deliberately shifting away from a model overly reliant on expensive external borrowing toward a more resilient growth framework powered by domestic reforms, private capital, and diversified financing instruments,”
He explained that the new approach was in line with evolving global development finance priorities that emphasis innovative financing, blended instruments and expanded concessional windows, adding that Nigeria is targeting an average medium-term growth of seven per cent, which would require raising the investment-to-GDP ratio to at least 30 per cent.
“With the current public sector’s financing capacity at roughly 5 per cent of GDP, the strategy emphasizes attracting private capital through structured PPPs, optimizing public assets, and creating bankable, de-risked investment opportunities,” he said.
The Minister noted that Nigeria’s reform programme under President Bola Tinubu’s administration was anchored on a three-phase agenda of market correction, stabilization and growth acceleration, reiterating that over the past two years, the administration had implemented “bold, politically difficult but necessary reforms aimed at restoring macroeconomic stability,” adding that the measures had laid the groundwork for a more competitive and resilient economy.
He noted that early outcomes of the reforms were becoming evident, with investor sentiment gradually recovering and significant capital commitments returning to the country. He added that “The reform path has attracted global recognition, and investor sentiment is steadily recovering. This renewed confidence according to him is reflected in the return of significant capital commitments to Nigeria,”
Edun described the current global environment as one defined by fragmentation, geopolitical rivalry and weakening multilateral institutions, warning that deepening geoeconomic confrontation could reduce global output by two percentage points and shrink global trade by 2.3 per cent, emphasizing that emerging markets and developing economies were particularly vulnerable, noting that over a quarter of them had already lost access to international capital markets, while more than half of low-income countries were in or approaching debt distress.
He hinted that “Through broad-based tax reforms, implementation of a modernized tax law, and improvements in compliance and automation, including the National Single Window initiative, Nigeria is set to raise its tax-to-GDP ratio to 18 per cent in the medium term.
Edun stressed that the era of waiting for external capital flows to drive development was over, urging countries in the Global South to strengthen collaboration, emphasizing that “The era of waiting for trickle-down prosperity from the North has passed. The future belongs to regions that collaborate, innovate, and integrate with purpose,”.
The Minister called on members of the G-24 to advocate reforms of the global financial architecture, including strengthening the IMF’s global financial safety net, expanding concessional lending by multilateral development banks and prioritizing local currency financing.
According to him, such reforms are critical to support countries that have lost access to international capital markets and to close the widening Sustainable Development Goals financing gap.
He urged G-24 members to use the meeting to harmonize their positions and present a unified voice in shaping a more inclusive and resilient global financial system.
The Central Bank of Nigeria (CBN) Governor Olayemi Cardoso during his keynote speech emphasized on the critical challenges facing the global economy and how emerging economies can leverage policy coordination, mutual trade and investment to build resilience.
He also explained the need for urgent reforms in digital cross-border payment systems and how it can be harnessed to promote and drive inclusive growth and strengthen global financial stability, highlighting Nigeria’s efforts to modernize its regulatory and supervisory frameworks, including strengthening oversight of payment infrastructure providers and enhancing anti-money laundering measures.
Cardoso also stressed the importance of transparency, credibility, and cooperation among African nations to build resilient financial systems.
Earlier, in her opening remarks, Director and Head of Secretariat of the G-24, Dr Iyabo Masha, said the global economy was experiencing “measured resilience but constrained ambition,” warning that emerging market and developing economies must move beyond recovery to restore sustainable growth paths.
She said that although inflation had moderated in some economies and supply disruptions had eased, “resilience is not the same as robustness,” noting that global conditions remained fragile.
Masha said global merchandise trade growth for 2026 was projected at just 0.5 per cent, reflecting the cumulative impact of tariffs and policy uncertainty, a development she said would weaken external demand and slow technology diffusion, adding that policy space for emerging and developing economies was tightening as debt service obligations absorbed a growing share of revenues, with external public debt service reaching $487bn in 2023.
According to her, near-term risks include renewed inflation or supply shocks, abrupt tightening of global financial conditions, deepening trade fragmentation, prolonged debt distress and erosion of human capital.
She urged policymakers to strengthen fiscal and monetary frameworks, expand domestic resource mobilisation, prioritise climate adaptation and human capital development, and deepen regional trade and investment partnerships.
Signed
Amadi Uloma Nneka
Assistant Director (Information and Public Relations)
www.finance.gov.ng
