Nigeria Plans Mass Savings Scheme to Reduce Borrowing

The Federal Government of Nigeria is contemplating the introduction of a mass savings scheme aimed at reducing reliance on borrowing and expanding domestic investment. Finance Minister Wale Edun disclosed this plan during a panel session on Tuesday, as part of the latest Nigeria Development Update by the World Bank in Abuja.

The proposed initiative is designed to allow Nigerians across various income levels to save and earn returns, including companies and large firms listed on the stock exchange. Edun emphasized the government's intention to shift away from heavy reliance on debt financing, particularly in light of rising borrowing costs.

He noted that the government is exploring alternative funding options through domestic savings and mobilizing equity participation. The initiative aligns with broader reforms aimed at strengthening public finances, improving revenue tracking, and controlling expenditures.

Edun acknowledged the strain posed by rising debt service costs and interest rates, which have sharply increased in recent years. He reiterated that investment remains a key driver for poverty reduction and economic growth.