Nigeria Unveils Economic Reforms, Targets Fiscal Sustainability at WEF 2026

Nigeria plans to reduce its reliance on borrowing and focus more on domestic revenue generation and investments, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said. He spoke on Bloomberg Television on the sidelines of the 56th World Economic Forum in Davos, Switzerland, where he outlined the Federal Government’s fiscal priorities amid global economic pressures.

Edun said the government’s strategy is anchored on mobilising local resources, strengthening tax revenue and ensuring long-term fiscal sustainability, while keeping access to international capital markets as a secondary option. He noted that although Nigeria can tap global bond markets if necessary, the priority is to expand domestic revenue and reduce debt dependence through ongoing reforms.

Since assuming office in 2023, the administration of President Bola Tinubu has rolled out wide-ranging economic reforms, including the removal of fuel subsidies, liberalisation of the foreign exchange market and an overhaul of the tax framework. These measures are aimed at raising government revenue to about 18 per cent of GDP next year, from roughly 14 per cent currently, while stabilising public finances and boosting investor confidence.

International institutions have acknowledged early signs of progress. The International Monetary Fund recently upgraded Nigeria’s growth forecast to 4.4 per cent for 2026, up from an estimated 4.2 per cent in 2025, despite weaker oil prices. Edun said Nigeria’s engagement at Davos will focus on reassuring investors about policy consistency, inflation control, foreign exchange stability and fiscal sustainability, as the country also unveiled its first official national pavilion, Nigeria House Davos, at the forum.

Written by Adeyemi Adewale