President Bola Ahmed Tinubu has disclosed that the Federal Government has halted borrowing from domestic banks, following improved revenue performance in recent months.
Speaking on Tuesday, the President explained that Nigeria has exceeded its revenue targets for the first half of the year, a development he described as a turning point for the country’s fiscal stability. According to him, the achievement signals the government’s determination to reduce dependence on short-term domestic borrowing that has often crowded out private sector access to credit.
The President attributed the revenue boost to ongoing reforms, particularly measures to block leakages, expand the tax net, and improve efficiency in revenue collection agencies. He noted that these efforts are part of a broader economic plan to restore investor confidence and ease pressure on the financial system.
By suspending local borrowing, the Federal Government aims to free up liquidity for businesses, encourage private sector lending, and support sustainable economic growth. Tinubu assured that the administration would continue to prioritize prudent fiscal management, while channeling increased revenues into infrastructure, social welfare, and job-creating sectors.
Economic analysts have described the move as significant, noting that reduced government borrowing from domestic banks could help stabilize interest rates and provide breathing space for private enterprises seeking credit.
