The Minister of Finance, Wale Edun, has emphasized a shift in the economic landscape, stating that the federal government needs to step aside and allow private investors to drive economic growth.
Speaking at the World Economic Forum (WEF), Edun highlighted the importance of private investors in fostering economic development, job creation, and poverty reduction.
Edun revealed that the 2024 budget incorporates about N300 billion in revenue projections from the private sector. This, according to the minister, signifies the government’s commitment to facilitating private investments and leveraging domestic resources.
“We are doing all it takes to ensure that we maximize our domestic resources, provide our own equity. And I think it is an indication of the direction of travel of the federal government. A willingness and a commitment for government to move out of the way and allow private investments to maximize the resources, maximize opportunities, create jobs and reduce poverty,” Edun explained.
Regarding recent investment trips by the government, Edun noted that advanced countries are maintaining higher interest rates to combat inflation, resulting in expensive debt financing for emerging economies like Nigeria. This has prompted developing countries to focus on domestic resource mobilization and internal revenue generation instead of relying on borrowing.
“As we have moved around the world, we have been at the table in France, the World Bank meetings, the G20 meetings and Arab summit. The refrain all round is that interest rate remains high and are expected to remain high as the developed world fight inflation. That means that international debt financing as a source of funding is relatively expensive and not advisable as a general policy,” he stated.
The minister highlighted the need for more efficiency in revenue generation and spending, aligning with the global trend of focusing on domestic mobilization and internal resource generation.
The 2024 WEF meeting, held annually in Davos, Switzerland, aims to emphasize artificial intelligence, guiding leaders on navigating innovation and regulation.
Vice President Kashim Shettima is leading the Nigerian delegation to the forum, addressing global socio-economic and development issues.
