JUST IN: NIGERIA’S DEBT SERVICE PLUMMETS AS REVENUE SURGES
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With a sharp drop in debt service and a rise in non-oil earnings, the Nigerian government has made notable progress in managing its finances.
These encouraging outcomes were revealed by Finance Minister Wale Edun during an evaluation of the economy’s first-half performance.
The minister claims that from a startling 97% in June 2023 to a more tolerable 68% in 2024, the debt service ratio has drastically decreased.
Significant funds are now available for vital industries like social services, healthcare, education, and infrastructure, thanks to this large reduction in debt payment expenses. Additionally, it strengthens the government’s standing with foreign financial institutions and investors.
Moreover, Nigeria’s total debt, which is made up of both international and local commitments, has dropped. Furthermore, the debt in US dollars has dropped from $181 million to $98 million.
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The minister credited the government’s withdrawal from the Ways and Means funding plan as well as the contractors’ timely payments for their accomplishment.
Non-oil income has grown at an unprecedented rate in terms of revenue, outpacing the previous year’s performance by an astounding 30%. This is a substantial amount more than what was planned for the first half of 2024.
The minister underlined the government’s commitment to tax reforms while stressing the significance of diversifying revenue streams away from oil. The goal is to raise government revenue as a share of GDP from roughly 14–15% to roughly 25%, or nearly double that amount.
The government has put strong measures in place to improve revenue collection in order to attain these advantages, including the use of technology and the simplification of internal procedures at revenue-generating organizations. Even though it still makes up a sizable portion of gross sales, oil revenue has decreased to 30% from 11% during the same period last year.
The minister highlighted the government’s data-driven strategy for guiding the economy in the correct direction while expressing pleasure with the progress made thus far.
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