Nigeria’s economic situation, according to the Federal Government, is not so dire that the nation will need assistance from abroad to restructure its debt.
The administration is confident that both the economy and its debt profile are not in serious trouble, according to Mr. Wale Edun, Minister of Finance and Coordinating Minister for the Economy.
The economic strategy, he continued, was developed internally and was not influenced by outside forces.
Nigeria’s national debt, which is currently over N87 trillion, and worries that a revenue shortage could impair the government’s financial viability were the backdrop against which Edun spoke.
He said the overall outlook of the economic potential and the reforms by the government gives a strong assurance that Nigeria will not fall into any likelihood of seeking international assistance on debt restructuring, such as the International Monetary Fund (IMF)’s “Common Framework”.
“We thank God Nigeria is not in that condition or situation now. We don’t need this type of financing at the moment,” Edun said.
The “Common Framework” is a system through which countries that are creditors agree on the basis of which to help a nation that cannot pay its debt.
The “Common Framework” is intended to deal with insolvency and protracted liquidity problems, along with the implementation of an IMF-supported programme, such as an Extended Credit Facility and other conditional reforms.
Edun said Nigeria’s economic reforms are home-grown, driven by President Bola Tinubu’s reform agenda and commitment to deepening national economic growth and development.
“There is a Fiscal Policy and Tax Reform Committee in place. It has nothing to do with the IMF; it is home-grown.
“We’re into self-reliance, domestic resource mobilisation and that includes, in no small part, coming up with our own plans and ideas rather than having them imposed from outside by those who definitely know less than we do about our situation,” Edun said.
According to him, the government is implementing a reform package in the form of strong fiscal policies that promote fiscal discipline, effective debt management, and prudent borrowing practices.
“These policies help the government generate enough revenue and allocate resources efficiently, reducing the likelihood of needing debt restructuring.
“The ongoing reforms are a package. They are being implemented steadily but they are complete in the sense that they deal with the revenue side, the fiscal side; that is the government revenue and government expenditure.
“The reforms deal with the monetary side through the Central Bank.
“Some measures have been taken by the Central Bank, including the foreign exchange market reforms.
“They deal also with the issue of financing, making sure that the deficit can be financed, among others.
“There are plans, strategies and targets in each of those areas. While it is a continuous work in progress, nothing ever stands still regarding the economy.
