Nigeria Cannot Borrow Its Way To Development – Finance Minister

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigeria could no longer rely mainly on borrowing to fund development, warning that the country must build a sustainable fiscal system capable of supporting critical sectors of the economy.

Oyedele stated this on Tuesday while speaking at the 28th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja.

“Nigeria cannot continue to finance development primarily through borrowing. We must build a fiscal system capable of sustainably supporting critical infrastructure, quality education, affordable healthcare, security, and social protection,” he said.

He added that sustainability was not only about generating revenue but also about promoting growth, reducing inequality, protecting vulnerable groups, and encouraging productivity.

According to him, the Federal Government’s ongoing tax reforms are designed to make the economy more investment-friendly while improving fiscal sustainability.

Oyedele said the reforms were necessary because Nigeria’s tax system had long suffered from structural weaknesses, including multiple taxation, fragmented administration, weak compliance, and overdependence on a narrow revenue base.

“Businesses faced overlapping debts, unpredictable enforcements, and rising compliance costs. Citizens often perceived the tax system as unfair because the burden was unevenly distributed,” he said