The Federal Government (FG) has unveiled plans to introduce a mass savings scheme aimed at reducing reliance on borrowing while expanding domestic investment, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said.
Edun disclosed this on Tuesday during a panel session at the launch of the latest Nigeria Development Update by the World Bank in Abuja, noting that the initiative would allow Nigerians across income levels to save, invest, and earn returns.
“There are mass savings schemes which allow people at all levels of society to save and earn unearned income, including from companies such as refineries and other large firms listed on the stock exchange,” he said.
The minister explained that the government is deliberately moving away from heavy dependence on debt financing, especially in the face of rising borrowing costs.
“We do not intend to keep going cap in hand to the debt markets, particularly at the elevated cost, even internationally, for developing countries,” he stated.
ALSO READ: FG has disbursed N330bn to 8.5m poor households —Wale Edun
According to him, alternative funding options such as domestic savings mobilisation and equity participation will play a bigger role going forward, as the government seeks to attract private capital.
Edun said the move aligns with broader fiscal reforms focused on strengthening public finances through improved revenue tracking and tighter expenditure control.
“We have migrated all revenue-generating ministries, departments, and agencies onto a platform where we can monitor expected revenues and confirm actual receipts,” he said.
He added that the government is reviewing cost-of-collection frameworks across agencies to improve efficiency and transparency.
“Some agencies operate what they call cost of collection, but it is the surplus that belongs to the government. We are shining a light on that,” he noted.
The minister further revealed that forensic audits are being deployed to curb leakages and ensure value for money.
“Forensic audits help to check and double-check that the government is not overpaying. They are a constant tool to ensure public funds are not shortchanged,” he said.
On asset optimisation, Edun said the government is exploring strategies such as privatisation, divestment, and public-private partnerships (PPPs) to support fiscal sustainability.
“We are looking at optimising assets, including divestment, privatisation, and PPP arrangements,” he added
He also highlighted ongoing efforts to cut the cost of governance, including personnel-related expenses, as part of measures to improve spending efficiency.
Edun acknowledged the pressure from rising debt servicing costs, revealing that interest rates increased significantly in recent years.
“The interest rate the government was paying rose from about eight per cent to about 24 per cent by late 2024,” he said.
On the broader economy, the minister said Nigeria remains resilient despite global shocks, including the impact of the Middle East conflict on energy markets.
“Yes, prices have gone up, but supply remains available. There is resilience that keeps the wheels of the Nigerian economy turning,” he said.
He added that while higher oil prices could boost government revenue, they also come with increased costs and inflationary pressures.
“There is the prospect of increased revenue, but on the other hand, costs have also gone up. We are hoping for the best, but planning for the worst,” he said.
Edun stressed that investment remains key to reducing poverty, noting that both large-scale and small-scale investments are critical.
“The way we are going to lift millions of Nigerians out of poverty is through investment — not only large-scale but also small and medium-scale investment,” he said
He added that ongoing reforms have created a more market-driven economy.
“We now have market pricing of foreign exchange, market pricing of petroleum products, and an economy that offers opportunity,” he said, urging Nigerians to take advantage of emerging investment opportunities.