Na big news dey ground for Abuja as Federal Government don announce plan to launch mass savings scheme wey go help reduce borrowing and boost domestic investment. The Minister of Finance, Wale Edun, yarn dis matter during panel session for launch of Nigeria Development Update by World Bank for Abuja on Tuesday.
Edun talk say dis scheme go allow Nigerians from all income levels to invest and earn returns, while dem dey support economic growth. “We get mass savings schemes wey allow people for all levels of society to save and earn unearned income, including from companies like refineries and other big firms wey dey listed for stock exchange,” the minister explain.
According to am, alternative funding options like domestic savings mobilisation and equity participation go play bigger role as government dey try to crowd in private capital. Edun add say dis initiative align with broader reforms wey dey aim to strengthen public finances, including better revenue tracking and expenditure control.
“We don migrate all the revenue-generating ministries, departments, and agencies onto platform where we fit see all the revenue, wetin dey expected, and confirm say dem actually collect am,” Edun talk. The minister add say government dey review cost-of-collection frameworks across agencies to ensure efficiency and transparency.
Edun yarn say forensic audits dey useful to check and double-check say government no dey pay too much. “Dem be constant tool wey dem dey use to ensure say public finances no dey shortchanged,” he state. The minister further note say asset optimisation strategies like privatisation and public-private partnerships dey pursued to support fiscal sustainability.
He also point to ongoing efforts to reduce cost of governance, including personnel-related expenses, as part of measures to improve spending efficiency. Edun acknowledge say rising debt service costs dey pose strain, noting say interest rates don increase sharply for recent years.
“The interest rate wey government dey pay rise from about eight per cent to about 24 per cent by late 2024,” he explain. Edun talk say reforms wey dem dey implement—from revenue recovery to expenditure control and private investment mobilisation—dey designed to ease fiscal pressures over time.
For broader economy matter, Edun talk say Nigeria still dey resilient despite impact of Middle East conflict on global energy markets. “Yes, prices don go up, but supply still dey available. We get resilience wey dey keep wheels of Nigerian economy and society dey turn,” he yarn.
He attribute dis to reforms wey dem carry out under administration of President Bola Tinubu, noting say economy don better positioned to absorb external shocks. Edun add say while higher oil prices fit boost government revenues, dem also come with rising costs and inflationary pressures.
“We get prospect of increased revenue for government, but for other hand, costs don also go up,” he talk. The minister note say government dey take cautious approach to uncertain global environment. “We dey hope for best, but we dey plan for worst,” he state.
Edun stress say beyond fiscal and monetary measures, investment remain key driver of poverty reduction. “The way we go substantially lift millions of Nigerians out of poverty na through investment—not only large-scale investment, but also small and medium-scale investment,” he explain.
He add say ongoing reforms don create more open and market-driven economy. “We now get market pricing of foreign exchange, market pricing of petroleum products, and economy wey dey offer opportunity,” Edun talk, urging Nigerians to take advantage of emerging investment opportunities.
Meanwhile, for another development, Deputy Governor of Central Bank of Nigeria for Economic Policy, Muhammad Abdullahi, don announce say bank dey consider recapitalisation and restructuring of Development Finance Institutions to address significant financing gap wey dey face micro, small, and medium-sized enterprises.
The deputy governor disclose dis during panel session for launch of Nigeria Development Update by World Bank for Abuja on Tuesday. He explain say recent review by apex bank find say existing DFIs too small to meet credit needs of businesses.
“We conduct review last year of development finance space. Across all DFIs for Nigeria, total asset base na slightly above N8tn, whereas wetin dey required for development finance for MSMEs na over N130tn,” Abdullahi talk.
Dis move by CBN and FG mass savings plan dey come as government dey shift from expensive external borrowing to growth model wey dey anchor on private capital and domestic reforms. However, PUNCH Online earlier report say Federal Government don increase borrowing plan for 2026 to N29.20 trillion following expansion for proposed budget size.
The figure represent increase of N11.31tn compared to earlier N17.89tn borrowing projection wey dey inside 2026 Abridged Budget Call Circular wey Federal Ministry of Budget and Economic Planning issue.
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