Edun: Tinubu’s Government Has Not Borrowed from CBN

Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, clarified that the government led by Tinubu has not borrowed from the Central Bank of Nigeria (CBN). Speaking at a press conference during the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, Edun addressed concerns about excess liquidity in the system and outlined measures being taken to address the issue.

Edun emphasized that the fiscal and monetary authorities are working in tandem to combat inflation and stabilize the exchange rate. He stated that the government plans to employ Ways and Means to alleviate the pressure caused by the surplus money in the system. The collaboration between the two authorities aims to reduce inflation, ensure price stability, lower interest rates for investors, and steer the economy in a positive direction.

Edun: Tinubu’s Government Has Not Borrowed from CBN

The Minister also highlighted the need to focus on domestic resource mobilization and reduce reliance on borrowing. He expressed the government’s intention to borrow less and instead concentrate on long-term resources to avoid repayment and refinancing pressures.

Edun acknowledged that Nigeria’s tax-to-GDP ratio is alarmingly low, even below the African regional average. To address this issue, the government is implementing reforms aimed at streamlining the tax system, utilizing technology for more efficient tax collection, and implementing policies to double tax revenue within the next three years. By eliminating numerous taxes and concentrating on the nine tax heads that currently contribute 90% of the revenue, while also leveraging technology, the government aims to enhance efficiency and increase tax collection.

Responding to a question about food security, the minister acknowledged the challenges faced by farmers in accessing their farms, particularly in areas plagued by insecurity. He stated that the government is actively addressing this issue and highlighted the economic nature of the current insecurity challenges.

To boost food production, the government is collaborating with the African Development Bank to establish agro clusters across the country. These efforts aim to enhance agricultural output and ensure food security for the nation.

Mr. Wale Edun’s statements provide insights into the government’s strategies for managing liquidity, promoting economic stability, and addressing critical issues such as tax reform and food security. As the government moves forward, we expect that these measures will contribute to a stronger economy and improve living conditions for Nigerians.

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