Nigeria’s Debt Service-To-Revenue Ratio Falls To 65% – Tinubu

In a recent address, President Bola Tinubu revealed that Nigeria’s debt service-to-revenue ratio has dropped from approximately 97% to 65% since he took office 17 months ago. 

During a swearing-in ceremony for seven new ministers at the State House in Abuja, Tinubu highlighted the significant economic challenges faced by the country, stating that servicing debt at such a high ratio was unsustainable.

He expressed confidence in the government’s ability to navigate economic recovery despite the cost-of-living crisis intensified by strict reforms. 

Tinubu noted that Nigeria’s debt servicing cost consumed 66.9% of its total revenue in the first nine months of 2023, a significant decrease from 99.3% in the same period of 2022. 

The President also addressed concerns raised by Afreximbank, which projected the debt service-to-revenue ratio could rise to 110.4% in 2024 if current trends continue. 

However, he remained optimistic that continued reforms could bring the ratio down to 62.6% by 2025. 

As part of a cabinet reshuffle, Tinubu appointed new ministers to various portfolios, emphasizing his administration’s commitment to tackling economic issues head-on while ensuring that all financial obligations are met.