Finance Minister Taiwo Oyedele and Central Bank of Nigeria Governor Olayemi Cardoso engaged in discussions with World Bank Group President Ajay Banga during the IMF and World Bank Group Annual Meetings in Bangkok, Thailand. The talks focused on Nigeria's ongoing economic reforms, with an emphasis on accelerating growth, attracting private capital, and enhancing domestic revenue mobilization.
Banga acknowledged Nigeria's reform progress, noting a significant increase in private capital inflows from approximately $300 million in 2023 to nearly $6 billion in 2026. This surge reflects the government's commitment to attracting investment and strengthening macroeconomic stability.
Minister Oyedele also highlighted an improvement in Nigeria's tax-to-GDP ratio, which rose from about 7% to 12.5% over the same period. This increase provides the government with greater capacity to fund public investments through revenue, reducing reliance on deficit monetization.
The discussions specifically explored how Nigeria can better utilize World Bank guarantee instruments to mobilize financing for infrastructure projects. These guarantees are intended to mitigate risks for investors and lenders, making projects more appealing to private financiers and helping to bridge infrastructure financing gaps without solely burdening public finances.
Power infrastructure and human capital development were identified as key priorities for continued public investment, crucial for enhancing business competitiveness, productivity, and employment. The officials also stressed the importance of improving the quality of government spending to ensure measurable economic and social benefits.