Nigeria Must Strengthen Domestic Revenue to Ease the Debt Service Burden-Edun

Nigeria stands at a critical juncture in its economic journey. The warning from Finance Minister Wale Edun that debt servicing is becoming a crushing burden for many developing nations cannot be ignored. While Nigeria is technically a lower-middle-income country, its public debt has surged to an estimated $100 billion, with almost half of government revenue consumed by debt repayments in 2025. This is a clear signal that relying heavily on borrowing is no longer sustainable.

The global financial landscape is shifting rapidly. Edun’s remarks at the G-24 Technical Group Meeting in Abuja underscore a sobering reality: 25% of emerging and developing economies have lost access to international capital markets. For these countries, including Nigeria, the path to stability lies in boosting internally generated revenue rather than leaning on external debt. This is not just prudent; it is essential for national sovereignty and long-term economic resilience.

Moreover, CBN Governor Olayemi Cardoso’s observations about cross-border payments highlight an often-overlooked constraint on economic growth. High transaction costs and slow remittances impede MSMEs and frustrate ordinary Nigerians seeking to participate in global trade. Modernizing digital payment systems is therefore not just a convenience — it is a developmental necessity.

Nigeria must also heed Dr. Iyabo Masha’s point that policy fragmentation and global volatility demand decisive, coordinated action. Strengthening domestic revenue, investing in digital infrastructure, and enforcing efficient financial systems are no longer optional; they are the cornerstones of sustainable growth.

In the end, Nigeria’s future economic stability depends less on borrowing from abroad and more on mobilizing resources at home, empowering local businesses, and building resilience in the face of global financial shocks. The message from Edun and other G-24 leaders is clear: it is time to take ownership of our fiscal destiny.