During a meeting with investors at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, Finance Minister Mr. Wale Edun emphasized that the government is actively addressing the issue of excess liquidity in the system. He clarified that the government has not resorted to borrowing from the Central Bank of Nigeria (CBN) and is instead focusing on implementing effective measures to alleviate pressure caused by surplus funds.
Edun highlighted the collaborative efforts between fiscal and monetary authorities to combat inflation, stabilize prices, and maintain exchange rate stability. He outlined plans to reduce interest rates, facilitate affordable borrowing for investors, and steer the economy towards sustainable growth.
In the quest for economic stability, the government aims to minimize external borrowing and concentrate on domestic resource mobilization. Edun emphasized the importance of long-term financing solutions to mitigate repayment and refinancing challenges.
Moreover, the Finance Minister stressed the need for tax reforms to enhance revenue generation. He noted that Nigeria's tax-to-GDP ratio is significantly below the regional average and outlined strategies to double tax revenue within three years. These strategies include streamlining tax structures, leveraging technology for efficient tax collection, and focusing on high-yield tax sources while eliminating redundant taxes.
Addressing concerns about food security, Edun acknowledged the impact of insecurity on agricultural productivity, particularly in regions facing security challenges. The government is actively addressing access issues for farmers and collaborating with the African Development Bank to establish agro clusters aimed at boosting food production across the country.
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