Nigeria’s Finance and Coordinating Minister of the Economy, Wale Edun, on Thursday, reported a dramatic drop in the debt service ratio from an alarming 97 per cent in June 2023 to a more sustainable 68 per cent in 2024.
Addressing a press conference on the economy’s half-year performance in Abuja, Edun asserted that the reduction allows the government to redirect funds to essential sectors such as infrastructure, education, healthcare, and social services, thereby improving credibility with investors and international financial institutions.
The Minister also noted a decline in Nigeria’s total debt; both domestic and foreign dollar-denominated debt fell from $181 million to $98 million, attributed to timely payments to contractors and the government’s exit from the Ways and Means Financing scheme.
He added that the Federal Government’s economic policies over the past year have started yielding positive outcomes.
Edun highlighted an extraordinary 30 per cent growth in non-oil income, surpassing last year’s performance and exceeding budget expectations for the first half of 2024.
He emphasised the government’s commitment to diversifying revenue sources beyond oil through robust tax reforms aimed at doubling government revenue as a percentage of GDP, from approximately 14-15 per cent to around 25 per cent.
