Nigeria’s debt-to-revenue ratio drops to 65% under Tinubu, but stability concerns persist.(Photo by Kola SULAIMON / AFP) (Photo by KOLA SULAIMON/AFP via Getty Images)
Nigeria (EPICSTORIAN) — After years of promises for economic recovery, Nigeria is seeing its debt service-to-revenue ratio decline, though challenges persist, the Nigerian president Bola Ahmed Tinubu said Thursday.
According to a statement, issued by the president through the Minister of Information and National Orientation, Mohammed Idris , this ratio has reportedly dropped from almost 100% to around 65%, following “sustained reforms.”
“Today, our debt service to revenue ratio has come down drastically from almost 100% to about 65%”, the president said.
“I am pleased to let you know that through our sustained reforms, we are witnessing our economy gradually making a rebound on the most important foundational level.”
Fears linger over the nation’s over-reliance on debt to sustain economic growth, despite proclaimed reductions in borrowing levels aimed at long-term fiscal stability.
Clarifying further, the statement also highlighted his continued efforts to stabilise finances under what he described as a “Renewed Hope Agenda.” The initiative, according to him, is intended to restore faith in the country’s ability to thrive, though many observers question its immediate impacts on the average citizen. After nearly two years of reform efforts, tangible benefits for everyday Nigerians seem elusive.
“The last eighteen months have been spent laying the foundation for this compelling vision of a prosperous Nigeria. That is what the Renewed Hope Agenda is all about – rekindling the faith and hope of all Nigerians in the ability of their country to flourish and to in turn provide an environment that allows everyone in it to flourish just as much,” he added.
Nigerian Households not impacted by Debt service-to-revenue ratio decline
Significant issues still threaten the country’s economic stability. For example, the controversial fuel subsidy system, which the administration had earlier called “ruinous” for its allegedly draining billions annually.
The government claimed to have reallocated funds to more critical infrastructure and social needs after removing this subsidy.
However, the ripple effects have yet to be felt by those struggling with rising fuel costs, impact of which could be currently seen as disproportionately affecting lower-income families.
The foreign exchange regime, which is a persistent challenge for the APC-candidate-led administration, remains under intense analysis, as policymakers grapple with complex economic implications and possible durable regulatory solutions.
Arab-Islamic Summit: President Tinubu Set for Crucial Talks in Saudi Arabia on Sunday
Tinubu’s efficiency-driven administration has called it a “needless drain”, promising more reforms, though pessimism is rife as the system continues to face alleged “Bad governance, corruption and manipulation” by the citizens. For many Nigerians, these reassurances feel like a familiar manifesto, with real economic relief still seeming out of reach for many poor households.
Good Good journalism begins with facts. Feel free to verify our information anytime using the available global fact-checking tool.
