FG Cuts Commercial Borrowing, Prioritizes Efficient Resource Use
By Patience Ikpeme
The federal government has announced improvements in resource allocation, leading to more efficient use of funds and a reduced reliance on high-interest commercial loans.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, speaking virtually at a two-day interactive session on sustainable financial management, stated that the government has achieved “optimization in its resources allocation, with less focus on borrowing from the commercial market which attracts high borrowing cost.”
The government is now prioritizing alternative funding sources, such as increased revenue generation, concessional loans, and strategic investments, to ensure sustainable financing.
Edun said resource optimization enhances public transparency, reduces waste, and fosters accountability in public financial management. “We want to enhance public transparency, reduce waste and foster accountability in public financial management in the course of optimizing our resources,” he said. “We are at that optimization stage, where there is less focus on borrowing, particularly from the commercial markets which is quite high. We focus more on optimizing assets and crowding private sector investment, whether domestic, whether foreign.”
He expressed confidence in the government’s ability to lift people out of poverty through macroeconomic tools and called for continued collaboration between government agencies. “I’m confident that through our collective resolve, using macroeconomic tools, we can charge a course that will lift our people out of poverty in substantial numbers. Let us continue to have mutual respect, mutual understanding and cooperation, consultation and of course collaboration between us all as we serve under the in-book leadership, the bold leadership, the corrective leadership of President Bola Ahmed Tinubu, the people of Nigeria.”
He stated the event demonstrated the Ministry of Finance’s commitment to partnering with stakeholders to drive sustainable economic growth and sound financial management.
Senator Ita Enang, the lead speaker, discussed the importance of a seamless interface between the executive and legislative branches. He stated that legislative committees must obtain a House resolution before conducting public investigative hearings. “Therefore, although you are the overseeing Committee, you cannot, without House resolution invite the Minister head of agency to conduct an investigation over a matter. This is because you are a Committee of the House and before the House can receive such a report, it must make reference to her Resolution authorizing same,” he said.
Enang suggested that the Ministry of Finance, along with the Ministry of Budget & Economic Development and the Budget Office of the Federation, should establish an Economy Coordination Liaison Mission to the National Assembly. He also recommended that economic sector institutions, such as the Central Bank, NDIC, NIMASA, and NPA, have liaison officers to monitor and drive bills.
He proposed that these liaison personnel work under the ministerial liaison mission, directed by the Coordinating Minister of the Economy, to avoid institutions working in silos and endangering the national economy.
