The federal government said it has improved its resource allocation strategy to enhance efficiency and sustainability.
With this decision, the government has also reduced the nation’s dependence on high-cost commercial borrowing. Instead, the government is exploring alternative funding sources, such as revenue generation, concessional loans, and strategic investments.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this during a virtual address on Thursday at the opening of a two-day high-level interactive session in Abuja.
The event focused on strengthening collaboration for sustainable financial management and national development, bringing together members of the Senate and House Committees on Finance, Heads of Agencies, and Directors from the Ministry.
Edun stated that the administration has reached a stage where resource optimization takes precedence, leading to a shift away from borrowing from commercial markets. According to him, this shift is part of broader efforts to promote fiscal responsibility and reduce the financial strain caused by expensive loans.
“We want to enhance public transparency, reduce waste, and foster accountability in public financial management while optimizing our resources. We are at that optimization stage, where there is less focus on borrowing, particularly from the commercial markets, which is quite high. We are focusing more on optimizing assets and attracting private sector investment, whether domestic or foreign. That’s the collaboration I keep referring to, and it emerges at every stage,” Edun stated.
He expressed confidence in the government’s economic strategy, insisting that by using macroeconomic tools, Nigeria can significantly reduce poverty and promote sustainable development. He stressed the need for mutual respect, cooperation, and collaboration among key stakeholders in serving under the leadership of President Bola Ahmed Tinubu.
“This event demonstrates the commitment of the Federal Ministry of Finance to partner with critical stakeholders at various levels in driving sustainable economic growth and sound financial management for our dear country,” he added.
The Lead Speaker at the event, Senator Ita Enang, delivered a presentation on the importance of seamless coordination between the Executive and the Legislature in advancing economic policies. He pointed out that legislative committees must obtain a resolution from their respective chambers before conducting investigative hearings involving government officials.
“Although you are the overseeing committee, you cannot, without a House resolution, invite a Minister or head of an 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 reference its resolution authorizing the inquiry,” Enang explained.
To enhance the transmission of bills between the Executive and the National Assembly, he recommended the establishment of an Economy Coordination Liaison Mission within the Ministry of Finance. According to him, this mission should work closely with the Ministry of Budget and Economic Development and the Budget Office of the Federation to facilitate smooth interactions with lawmakers.
Enang noted the presence of liaison officers from institutions such as the Central Bank of Nigeria (CBN), Nigerian Deposit Insurance Corporation (NDIC), Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian Ports Authority (NPA), who monitor and advance bills relevant to their mandates.
He proposed that these institutions’ liaison personnel should operate under a unified directive from the Coordinating Minister of the Economy to ensure coherence in policymaking and prevent conflicting economic measures.
“The entirety of this economic sector liaison personnel should, under the directive of the Coordinating Minister of the Economy, work in coordination with finance and related committees of each chamber of the National Assembly. This will prevent institutions from working in silos and producing outcomes that, while strengthening individual agencies, could inadvertently harm the national economy,” he stated.
