Nigeria's government will avoid taking on new debt and instead turn to the private sector to drive the economy, finance minister Wale Edun said while unveiling a sweeping agenda to boost growth.    

The economy of Africa's biggest oil producer last looked stable about a decade ago during the global commodity prices boom that sent oil prices soaring but the economy has since slowed, Edun said in a statement on Friday broadcast on television.    

At the time, the government had enough foreign exchange from oil exports of over over $80 billion to provide the funding for growth of the economy but now earns around $25 billion annually, he said.      

"Clearly, the federal government is not in a position to borrow at this time. Rather, the emphasis has to be on creating a stable, macroeconomic environment." 

Nigeria's economic growth rate dropped to 2.51% in the second quarter from 3.54% in the same period last year.    

The growth was constrained by a drop in oil production and new policies by new President Bola Tinubu, including the removal of a government subsidy on fuel that, have fanned inflation. Tinubu has pledged to expand the economy by at least 6% a year.     

Edun said Tinubu would invite the private sector to help revamp Nigeria's economy, just as he did while governor of Lagos state before he became president. 

"There are huge flows of foreign direct investment, once you give investors the right conditions,” Edun said.  

(Editing by Seban Scaria seban.scaria@lseg.com)