Nigeria urged to reduce debt dependence- Edun

Finance and Coordinating Minister, Wale Edun, has called for Nigeria to cut reliance on borrowing and focus on strengthening domestic revenue mobilisation to sustainably fund development. Speaking at the Nigerian Revenue Service management retreat in Abuja, Edun highlighted the increasing cost of debt and challenging global financial conditions for developing nations.

He noted that in 2024, developing countries paid $163 billion in debt service, compared with $42 billion in development aid and $97 billion in foreign direct investment. “Nigeria must anchor fiscal sustainability on its own revenue-generating capacity, rather than continuing to rely on borrowing amid high global interest rates and tighter financial conditions,” he said.

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Edun emphasised that revenue mobilisation is a developmental imperative, and that tax reforms are central to reducing debt reliance. He added: “No fiscal reform can deliver results if compliance is weak. Yet compliance cannot be enforced through penalties alone; it requires both incentives and discipline.”

He also stressed the importance of citizen trust in the tax system. “People must see tangible benefits from their contributions, in infrastructure and public services,” he said.

Executive Chairman of the Nigerian Revenue Service (NRS), Zacch Adedeji, said the establishment of NRS marked a fresh approach to fiscal management, with accountability and performance at its core. He added that success would be measured by tangible outcomes that strengthen public trust and support national development.