The Federal Government of Nigeria is shifting its fiscal strategy from heavy borrowing to aggressive revenue mobilisation as the country’s public debt climbs to around N152 trillion. This comes amid a N30 trillion revenue shortfall in 2025, with only N10 trillion realised from a target of N40 trillion.

Presenting the 2026–2028 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), Finance Minister Dr. Olawale Edun emphasised that future policy will prioritise revenue generation, domestic savings, and sustainable growth over new borrowing. He attributed the rise in debt largely to reclassifications, exchange-rate adjustments, and accounting regularisations, rather than fresh loans.

To boost revenue, the government is implementing a comprehensive digitalisation and process reform programme, requiring all revenue-generating agencies to remit funds directly to the Treasury Single Account (TSA). Additionally, a public-private partnership initiative is planned to encourage mass domestic savings across the population.

Senate Committee on Finance Chairman Senator Mohammed Sani Musa urged the Federal Inland Revenue Service (FIRS) to intensify public enlightenment campaigns on upcoming tax reforms to ensure compliance and avoid confusion. The committee also directed FIRS to increase its 2026 revenue target from N31 trillion to N35 trillion.

Despite the shortfalls, the government continues to meet its key obligations, including salaries, pensions, statutory transfers, and debt servicing. The MTEF/FSP outlines a three-year fiscal strategy focused on realistic revenue projections, savings mobilisation, and long-term economic sustainability.