The International Monetary Fund (IMF) has advised the incoming government of President-elect Sen. Bola Tinubu to prioritize increasing Nigeria’s revenue base and reduce dependence on debt to fund expenditures.

During a virtual forum on the Nigerian debt situation, the Resident Representative of IMF Nigeria, Ari Aisen, highlighted the need for fiscal discipline and emphasized that the government should not spend more than it generates in revenue.

Aisen stressed the importance of countries relying on their own revenue to finance their expenditure, promoting autonomy and independence.

Vahyala Kwaga, a Senior Research and Policy Analyst at BudgIT, called for addressing the distortion between fiscal and monetary authorities, highlighting the impact of funds injected into the economy.

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Experts also emphasized the importance of prudent borrowing and the proper utilization of loans for capital projects, as stipulated by the Fiscal Responsibility Act.

The Debt Management Office (DMO) stated its commitment to managing Nigeria’s debt transparently and urged the incoming government to narrow the gap between expenditure and revenue to limit borrowings.

Economic experts recommended strategies such as enhancing consumer purchasing power, improving ease of doing business, promoting infrastructure development, increasing public investment, and diversifying the economy to address Nigeria’s debt overhang and foster economic growth.

The manufacturing sector also called for stable and long-term government policies to increase its contribution to GDP.