President Bola Tinubu announced on Monday that Nigeria’s debt service-to-revenue ratio has reduced significantly, dropping from approximately 97% when he took office to 65% as of now. He made this statement while swearing in seven new ministers at the State House in Abuja.
“For us, it was a challenge when the nation was servicing its debt with 97% of its revenue. It was nothing but the edge of the cliff,” Tinubu stated, adding, “Today, we have brought that down to 65% and have consistently met all obligations, both foreign and domestic.”
This decrease follows strict economic reforms despite predictions by Afreximbank, which suggested the ratio could rise to 110.4% by 2024. In their July report, the bank noted a steep increase in Nigeria’s debt service burden, consuming ₦5.79 trillion (66.9%) of the country’s revenue in the first nine months of 2023.
While addressing the cost-of-living challenges, Tinubu remained optimistic about economic recovery. “We have taken the bull by the horns,” he said, pledging to end profiteering and resource smuggling. He assured the nation that his administration is “re-engineering” Nigeria’s economic path, tackling challenges head-on to build a sustainable future.
In a move to strengthen his cabinet, Tinubu also swore in new ministers, including Idi Maiha (Livestock Development) and Bianca Odumegwu-Ojukwu (State, Foreign Affairs), following a significant cabinet reshuffle in October.
