Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says Nigeria is positioning itself to engage the global economy through mutually beneficial partnerships amid increasing tariffs from the United States on countries.
Edun spoke on Tuesday during an interview with Bloomberg TV at the World Economic Forum (WEF) annual meeting in Davos, Switzerland, where global trade tensions and geopolitical uncertainty dominated discussions.
His comment follows global concern about U.S President Donald Trump’s trade posture.
Just days before heading to the WEF, Trump stunned European leaders by threatening to slap punitive tariffs on allies, including the UK, if they fail to back his plan to annex Greenland.
Nigeria chooses pragmatism over alarmism
Responding to a question on whether Nigeria was worried about an “imperialist America,” particularly around strategic assets and resources, Edun said the government is approaching the situation with optimism and pragmatism.
“We try to be positive and look at it that as a country that has resources, that has critical minerals, maybe we’ll be asked to do a transaction that will be mutually beneficial. That’s the way we look at it,” he said.
Edun warned that rising protectionism and a retreat from multilateralism could negatively affect emerging markets such as Nigeria.
“With trade, normally, countries like Nigeria, emerging markets, can expect to benefit from growing trade, which will lead to increased output,” he said.
“So in a situation where the world is fragmenting… we worry that that will lead to less trade, less growth, and of course less opportunity for countries such as ours and less investment.”
He noted that prolonged global fragmentation could ultimately weaken economic growth and social outcomes worldwide.
Government shifts focus from borrowing to investment
On Nigeria’s borrowing plans amid a projected wider budget deficit, Edun said the Tinubu administration is deliberately reducing reliance on debt and prioritising investment-led growth.
“The commitment of President Bola Ahmed Tinubu under his renewed hope agenda… is to consolidate and in fact to rely less on debt and to try and drive investment,” he said.
He added that Nigeria’s presence in Davos was aimed at repositioning the country as an attractive investment destination.
“We’re here in Davos to tell the Nigerian story and to show how investable Nigeria is now that we have a stable macroeconomic environment,” Edun said.
Eurobond issuance remains an option
Asked about the possibility of further Eurobond issuance, Edun said Nigeria has the flexibility to access the market but stressed that borrowing decisions would depend on market conditions and timing.
“If you want to go to the market, first of all, the market has to be receptive… and of course the timing has to be right,” he said.
He noted, however, that the government’s emphasis remains on mobilising domestic and foreign investment rather than increasing debt.
Tackling Nigeria’s high debt-to-revenue ratio
Edun acknowledged concerns about Nigeria’s high debt-to-revenue ratio, describing revenue mobilisation as the government’s primary focus.
“The issue is now to focus on revenue, focus on domestic resource mobilization,” he said.
He cited ongoing tax reforms aimed at increasing Nigeria’s tax-to-GDP ratio.
“We have a tax reform regime… meant to help increase the tax to GDP ratio from quite a low 13% now to drive it up to about 18% in the nearest future,” Edun said.
He also highlighted the role of automation and technology in blocking revenue leakages and improving efficiency.
What you should know
Economic forecasts indicate Nigeria’s reforms are showing early signs of progress.
The International Monetary Fund upgraded Nigeria’s growth forecast to 4.4% for 2026, up from an estimated 4.2% in 2025.
Government reforms are expected to further stabilize revenue collection and support fiscal sustainability.
