Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has stated that the federal government’s strategy to attract investments and foster economic growth lies in reducing interest rates to incentivise investment.
Edun commented during the World Bank-IMF spring meeting in Washington D.C, reiterating the government’s aim to bolster its revenue base, highlighting oil revenues and taxes as primary sources.
“Specifically, the government aims to enhance tax revenue without increasing tax rates but by improving administration and collection efficiency,” he stated.
He added, “Even if you look at the 2024 budget, it has a significant increase of 60% to 70% in overall government revenue projected because we need to borrow less and focus more on domestic resource mobilisation from taxes and other government revenues, particularly oil.”
Edun outlined the taxation strategy, which is not to increase tax rates but to improve efficiency and collection to enhance government revenue.
He elaborated, “The two authorities working together to stabilise the Nigerian economy, bring down inflation, stabilise the exchange rate with a target of eventually bringing down the interest rate and therefore making investment through borrowing more affordable for businesses and even individuals.”
He noted that the approach aims to stabilise the Nigerian economy, combat inflation, stabilise exchange rates, and ultimately reduce interest rates, thereby making borrowing for investment more accessible for businesses and individuals alike.
Newsng had earlier reported that the federal government seized the opportunity at the ongoing G24 meeting in Washington, D.C., to showcase investment opportunities in the country, particularly in the infrastructure and manufacturing sectors.
Ben Akabueze, Director-General of the Budget Office, delivered the presentation on behalf of Edun.
Addressing fiscal challenges and outlining Nigeria’s strategy to address them, Akabueze emphasised the importance of achieving debt sustainability while expanding budgetary space to accommodate growing public expenditure.
