The Federal Government has announced plans to refinance Nigeria’s high-interest debt portfolio as part of efforts to reduce debt servicing costs, strengthen fiscal stability, and create more fiscal space for productive investments.

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed this on Tuesday at the 55th Annual Conference of the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja.

Edun explained that the decision became necessary following a sharp rise in the country’s debt servicing obligations in recent years.

He noted that Treasury bill rates had surged from 8 percent in 2023 to nearly 24 percent, while external debt service costs almost tripled from a budgeted ₦2.7 trillion to ₦6.7 trillion in 2024.

“We are taking deliberate steps to refinance our expensive debt and bring down the cost of borrowing. This will ease fiscal pressure, free resources for development spending, and strengthen our long-term fiscal position,” Edun stated.

The minister said the refinancing plan aligns with the administration’s medium-term economic growth agenda focused on building a productive, private sector-led economy driven by openness, efficiency, and innovation.

“Our growth strategy is centered on productive capital formation through increased private investment. We are targeting a 7 percent GDP growth rate by 2027/2028, which will help lift millions of Nigerians out of poverty,” he added.

Edun further explained that the government is repositioning the economy to be driven by competition and innovation, with the public sector serving as a facilitator rather than a dominant actor.

He revealed that the administration is investing heavily in digital infrastructure to harness the potential of Nigeria’s youthful population, 65 percent of whom are under the age of 35.

According to him, through Project Bridge—a $2 billion public-private partnership supported by the World Bank and the African Development Bank—the government plans to expand fibre optic coverage by 90,000 kilometres, building on the existing 35,000km network. The initiative aims to achieve 70 percent nationwide internet penetration, connecting all local governments and wards to promote inclusion for women and youth.

“We are laying the foundation for a tech-driven future that will unlock opportunities for innovation, entrepreneurship, and inclusive growth,” Edun said.

He reported that Nigeria’s fiscal position has improved significantly over the past two years, with federal revenue growing by over 70 percent in nominal terms.

He attributed this improvement to key reforms under President Bola Tinubu’s Renewed Hope Agenda, including foreign exchange and fuel market liberalisation, as well as the automation of revenue collection systems.

Edun reiterated the government’s goal of raising Nigeria’s infrastructure stock from below 40 percent of GDP toward the global benchmark of 75 percent, while mobilising domestic resources through innovative financing and the formalisation of the informal sector.

He also highlighted the Tax Reform Act, which seeks to harmonise tax administration, expand the tax base, and eliminate multiple taxation, alongside efforts to strengthen digital revenue collection platforms and optimise the federal government’s balance sheet through asset financialisation.

“We expect subnational governments to follow suit by adopting asset optimisation strategies that enhance fiscal efficiency and revenue performance,” he said.

On social welfare, Edun noted that the government is scaling up social investment programmes through enhanced digital identification systems to ensure targeted and transparent delivery of support to vulnerable Nigerians.

He urged members of ICAN to play an active role in promoting transparency and accountability in the ongoing reforms.

“As custodians of financial integrity, your role is pivotal. ICAN should consider developing a transparent rating model for accounting firms, perhaps a four-star to zero-star system, to promote excellence in tax audit and financial reporting,” he suggested.

Edun reaffirmed the Tinubu administration’s commitment to restoring fiscal stability, fostering private sector-led growth, and driving sustainable economic transformation through prudent debt management, digital innovation, and inclusive reforms.

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