•Tax-to-GDP ratio rises to 125% from 7% — Oyedele
By Emma Ujah, Abuja Bureau Chief
Nigeria’s private capital inflows have surged nearly 20-fold to almost $6 billion in 2026 from about $300 million in 2023, President of the World Bank Group, Mr Ajay Banga, has said, just as the Federal Government (FG) said it has intensified efforts to translate economic reforms into faster growth, job creation and improved living standards.
Banga spoke on Monday during a meeting with the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, and the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, on the sidelines of the 2026 International Monetary Fund, IMF, and World Bank Group Annual Meetings in Bangkok, Thailand.
The meeting reviewed Nigeria’s progress in implementing economic reforms and explored strategies to move the economy from macroeconomic stability to sustained growth, increased private investment and stronger domestic revenue generation
According to a statement, yesterday, by Efe Oviakporie, Head of Information and Public relations of the Federal Ministry of Finance, Banga highlighted the significant increase in private capital inflows as evidence of growing investor interest in the Nigerian economy
Oyedele, in his remarks, disclosed that Nigeria’s tax-to-Gross Domestic Product, GDP, ratio had risen from about seven per cent to 125 per cent over the same period, strengthening the government’s capacity to finance public investment without resorting to deficit monetisation.
The development comes as the FG seeks to consolidate the gains of its economic reforms and create the conditions for increased investment in productive sectors of the economy
According to the Minister, improved domestic revenue mobilisation would provide greater fiscal space for the government to fund critical infrastructure and development priorities
The discussions also focused on how Nigeria could make greater use of World Bank guarantee instruments to unlock financing for infrastructure projects and attract additional private capital into the domestic economy
Such guarantees could help mobilise funding for projects that might otherwise struggle to attract investors, while reducing some of the risks associated with long-term infrastructure investments
Power infrastructure and human capital development were identified as key priorities for sustained public investment, given their implications for business competitiveness, productivity and employment generation