……Hopeful of early Economic Recovery
Caption:President Tinubu With newky sworn in Ministers
President Bola Tinubu announced on Monday that Nigeria’s debt service-to-revenue ratio has fallen to 65% from approximately 97% when he took office 17 months ago, signalling progress in fiscal management despite ongoing economic challenges.
Speaking at the swearing-in ceremony of seven new ministers at the State House in Abuja, Tinubu acknowledged that the administration had inherited an economy nearing insolvency but had successfully navigated the fiscal crisis.
“It was a daunting challenge when the country was using 97% of its revenue for debt service—it was nothing short of standing at the cliff’s edge,” Tinubu said.
“Today, we’ve brought that down to 65%, meeting all obligations, foreign and domestic, without default. We’re keeping our head above water, though every country faces economic pressures.”
Tinubu’s remarks follow a cautionary report from Afreximbank, which projects that Nigeria’s debt service-to-revenue ratio could rise to 110.4% by 2024 if fiscal challenges are not addressed.
Afreximbank’s “Nigeria Country Brief 2024,” released in July, underscores the strain on Nigeria’s revenue generation, noting that debt servicing consumed 66.9% of total revenue in the first nine months of 2023, a slight improvement from 99.3% in the same period of 2022.
The report forecasts that structural reforms could reduce this figure to 62.6% by 2025.
Acknowledging the economic impact of recent fiscal adjustments, Tinubu expressed optimism about Nigeria’s path toward economic stability and recovery. “We’ve taken on difficult reforms to confront the profiteers and smugglers draining our resources,” he said.
“This recovery journey is for our children and grandchildren, and we’re fully committed to it.”
The President also addressed the ongoing cost-of-living pressures, affirming his commitment to welfare support through the recently implemented minimum wage adjustment. “Yes, living costs have risen, and we recognize that. But we are fulfilling our obligations and diligently navigating these waters.”
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The cabinet swearing-in saw two groups of ministers take their oaths before President Tinubu, with the first cohort including Idi Maiha (Livestock Development), Yusuf Ata (Housing and Urban Development), Suwaiba Ahmad (Education), and Bianca Odumegwu-Ojukwu (Foreign Affairs).
In the second batch, Jumoke Oduwole (Industry, Trade and Investment), Nentawe Yilwatda (Humanitarian Affairs and Poverty Reduction), and Muhammadu Dingyadi (Labour and Employment) were inaugurated following Tinubu’s significant cabinet reshuffle on October 23.
In this reshuffle, the President re-assigned ten ministers to new roles, discharged five, and introduced seven new nominees awaiting Senate confirmation.
