Nigeria’s Revenue-to-Debt Service Ratio Now 68%—Wale Edun

By Adedapo Adesanya

Nigeria’s revenue-to-debt service ratio declined from 97 per cent in 2023 to 68 per cent in 2024, indicating a reduction in the debt burden of the government, the Minister of Finance, Mr Wale Edun has disclosed.

Debt service measures accrued interests paid on Nigeria’s debt which currently stands at N121.7 trillion. So, this means that for every N1 the country earns, it now pays 68 Kobo to service its debt obligations

The Minister said the country’s revenue is now being managed to promote transparency, accountability, and government spending visibility.

According to Mr Edun, the country’s revenue condition has been revamped as it no longer depends on ways and means advances from the Central Bank of Nigeria (CBN) to fund its fiscal obligations.

“There has been a reconfiguration of the processes and the procedures to give greater visibility, transparency and accountability in government spending. That’s the way the government can earn the trust of the people that their money is being spent wisely.

“This government has exited ways and means borrowing.

“Total debt service has declined from 97 per cent of revenue in the first half of 2023 to 68 per cent in 2024,” Mr Edun said.

The finance minister said the Bola Tinubu-led federal government expect the debt stock of Nigeria to decline to about $95 billion in Dollar terms.

“There is a focus on inflation, production and supporting businesses as a whole. As part of the implementation plans of the short-term stabilization package, particular focus will be given to driving food inflation and creating an improved investment climate for oil and gas.

“By the time we can have a successful harvest and can reduce post-harvest losses, we expect inflation to come down between 20 per cent and 25 per cent. This has already been signalled by the Central Bank.

“We expect the total debt stock to be below in dollar terms, $95 billion. And we expect budget deficits to be around 4 per cent which is the target,” Mr Edun added.