The Federal Government plans to refinance Nigeria’s expensive debt portfolio.
This is part of ongoing efforts to reduce the nation’s debt service costs and overall cost of borrowing.
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, made this known yesterday.
He spoke at the 55th Annual Conference of the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja.
The ICAN conference, which started on Monday, is themed “Building Resilience: Aligning Reforms for Nigeria’s Development”.
No fewer than 13,000 Chartered Accountants were expected, according to ICAN President Mallam Haruna Yahaya.
The conference will end on Friday.
Edun explained that the decision to refinance the country’s high-cost debt was driven by a sharp rise in debt service obligations in recent years. According to him, “Debt service costs have surged: Treasury bill rates rose from 8% in 2023 to nearly 24 per cent, and external debt service almost tripled from budgeted N2.7 trillion to N6.7 trillion in 2024.”
Refinancing expensive debts involves replacing high-interest loans with new, lower-interest facilities to ease pressure on government finances, free up resources for developmental spending, and improve the country’s fiscal sustainability.
The move is consistent with the government’s medium-term growth strategy, which seeks to build a productive economy anchored on private sector investment, openness, and efficiency.
According to Edun, “Our growth strategy is centred on productive capital formation through increased private investment. We are working to achieve an output growth of 7.0 per cent GDP by 2027/2028, thus enabling the removal of millions of our citizens from poverty,” Edun said.
He added that the Bola Ahmed Tinubu administration is determined to transition the Nigerian economy into one driven by competition and innovation, with the government acting as a facilitator rather than a dominant player.
“We are transitioning to an economy anchored on openness, competition, and efficiency, where the private sector is the engine of growth, and government efficiently plays its role as foreseer and enabler,” the minister stated.
Edun explained that the Federal Government is also making substantial investments in the digital economy to unlock new opportunities for the country’s predominantly young population. He noted that over 65 per cent of Nigerians are under the age of 35, presenting a unique demographic advantage that must be harnessed through technology and innovation.
“We are making bold investments in the digital economy. Through Project Bridge, a $2 billion Public-Private Partnership project supported by the World Bank and the African Development Bank, we are expanding fibre optic coverage by 90,000 km, building on the existing 35,000 km network,” the minister said.
“Our goal is 70 per cent nationwide internet penetration, reaching all LGAs and wards. This initiative addresses digital infrastructure gaps and promotes inclusion, especially for women and youth, paving the way for a tech-driven future,” he added.
On government’s finances, Edun stated that Nigeria’s fiscal position has recorded significant improvement in the last two years, noting that revenue has grown by over 70 per cent in nominal terms.
He attributed the increase to key reforms implemented under President Tinubu’s Renewed Hope Agenda, including the liberalisation of the foreign exchange and fuel markets, and the automation of revenue collection systems.
“The demand for development remains high as we strive to improve upon output growth and significantly enhance productivity. In part, this will be achieved by raising our infrastructure stock from its current level of less than 40 per cent of output towards the global benchmark of 75 per cent,” Edun noted.
He said the government is deploying a range of innovative measures to mobilise domestic resources to meet development financing needs, particularly in a global environment constrained by limited liquidity.
Among these initiatives, he mentioned formalising the large informal sector—particularly in real estate and agriculture—as revealed by the recent rebasing of Nigeria’s Gross Domestic Product (GDP) figures.
Edun also mentioned the expansion of the tax base through the new Tax Reform Act, which harmonises tax processes and reduces multiple taxation to enhance productivity.
“We are also working to strengthen digital revenue collection platforms,” he added.
According to him, the government is also leveraging “asset financialisation by optimising the federal government’s balance sheets,” with the expectation that subnational governments will adopt similar strategies to improve fiscal efficiency and revenue performance.
On social protection, Edun said the administration is expanding and strengthening its social investment programmes to reach more Nigerians in need.
“This is being achieved through enhanced digital identification systems, ensuring that support reaches those who need it most, efficiently and transparently,” he said.
He called on members of the accounting profession to play an active role in supporting fiscal and economic reforms through improved transparency and accountability mechanisms.
“As custodians of financial integrity, your role is pivotal in this reform journey,” Edun told ICAN members.
“I urge ICAN to develop a transparent rating model for accounting firms, especially in tax audit, aligned with global standards—perhaps a ‘4-star to zero-star’ system that promotes accountability and excellence.”
The minister’s remarks at the ICAN conference reinforce the Tinubu administration’s determination to restore fiscal stability, drive private sector-led growth, and position Nigeria for sustainable economic transformation through prudent debt management, innovation, and digital inclusion.
