President Bola Ahmed Tinubu has disclosed that Nigeria has cleared its outstanding debt to the International Monetary Fund (IMF) and grown its net external reserves by nearly 500 percent from $4 billion in 2023 to over $23 billion by the end of 2024.
The president attributed the achievement to fiscal discipline and policy reforms introduced under his administration.
Speaking on Thursday during his second-year anniversary address, President Tinubu stated that reforms such as the removal of petrol subsidies and foreign exchange market liberalisation contributed significantly to the country’s improved financial position.
“Our debt position is improving. While foreign exchange revaluation pushed our debt-to-GDP ratio to around 53 percent, our debt service-to-revenue ratio dropped from nearly 100 percent in 2022 to under 40 percent by 2024. We paid off our IMF obligations and grew our net external reserves by almost 500 percent,” Tinubu said.
He noted that the elimination of wasteful subsidies saved the country $20 billion in 2024 alone, enabling higher allocations to state governments and creating fiscal space for investment in infrastructure and human capital.
According to the president, these measures are aligned with his broader economic strategy focused on macroeconomic stability, revenue optimisation and responsible debt management.
Tinubu also reaffirmed his administration’s commitment to sustaining the current trajectory of reforms to build a resilient and inclusive economy.
Analysts view the repayment of IMF debt and increase in reserves as a signal of renewed investor confidence and fiscal discipline. The improvement in Nigeria’s external position is expected to support exchange rate stability and reduce reliance on short-term external borrowing going forward.
The Central Bank of Nigeria is expected to maintain cautious monetary policy to consolidate gains from recent reforms.
