President Bola Tinubu announced on Monday that Nigeria’s debt service-to-revenue ratio has dropped from around 97% when he took office 17 months ago to the current 65%, emphasizing his administration’s efforts to stabilize an economy once on the brink of insolvency.
Tinubu made the remarks during the swearing-in of seven new ministers at the State House in Abuja.
“It was a challenge when the nation was servicing its debt with 97% of its revenue—truly at the edge of the cliff,” Tinubu stated.
“Today, we have reduced that to 65%, meeting all foreign and domestic obligations without defaulting.”
The announcement comes on the heels of a recent Afreximbank report predicting that Nigeria’s debt service-to-revenue ratio could reach 110.4% in 2024, highlighting concerns over debt servicing relative to revenue generation.
According to Afreximbank, Nigeria’s debt servicing accounted for 66.9% (₦5.79 trillion) of the total revenue (₦8.65 trillion) in the first nine months of 2023, a decrease from 99.3% (₦4.23 trillion) during the same period in 2022.
However, Afreximbank projected that continued reforms could reduce the ratio to 62.6% by 2025.
Despite economic pressures, Tinubu expressed optimism about Nigeria’s recovery trajectory, noting, “We are taking decisive action against profiteers and smugglers, determined to end resource exploitation and put the economy on a sustainable path.”
Addressing the challenges of rising living costs due to recent reforms, Tinubu affirmed the government’s commitment to addressing economic hardship.
“Yes, the cost of living has risen.
We acknowledge this reality and have taken steps, including implementing a new minimum wage.
We are diligently working to navigate through these challenges,” he said.
During the ceremony, the seven new ministers were sworn in, including Idi Maiha (Minister of Livestock Development), Yusuf Ata (State, Housing and Urban Development), Dr. Suwaiba Ahmad (State, Education), Bianca Odumegwu-Ojukwu (State, Foreign Affairs), Dr. Jumoke Oduwole (Industry, Trade, and Investment), Dr. Nentawe Yilwatda (Humanitarian Affairs and Poverty Reduction), and Muhammadu Dingyadi (Minister of Labour & Employment).
This swearing-in follows a recent cabinet reshuffle in which Tinubu reassigned 10 ministers, released five others, and nominated seven for Senate approval.
