Nigeria’s Finance Minister, Wale Edun, has said the country’s debt service to revenue ratio has decreased from 97% in 2023 to 68% in 2024.
Addressing journalists in Abuja, Edun said the improved ratio reflects better fiscal management and transparency in handling national revenue.
The shift is attributed to a strategic overhaul aimed at enhancing accountability and ensuring that government spending is both visible and responsible.
Edun explained that Nigeria has moved away from relying on “ways and means” advances from the Central Bank to cover fiscal obligations.
“There has been a reconfiguration of the processes and the procedures to give greater visibility, transparency, and accountability in government spending,” Edun stated.
“That’s the way the government can earn the trust of the people that their money is being spent wisely.”
He further noted that the government has completely exited the “ways and means” borrowing, which was previously used to bridge funding gaps.
The improved debt service ratio is a clear indication of progress in financial management, providing a more stable economic outlook for the country.
This development comes as a relief to many, highlighting a potential shift towards economic stability and growth.
The reduction in debt servicing costs allows for more resources to be allocated towards critical infrastructure and social services, fostering national development.