Nigeria clears Ways and Means debt exceeding N30tn – Tinubu

• Published On: 01 October 2024 at 20:09

President Bola Tinubu announced that the federal government had paid off its Ways and Means debt, which totalled more than N30 trillion.

President Tinubu made the announcement during his 64th Independence Day address to the nation today.

The President stated that the country is making progress in addressing fiscal imbalances, such as a high debt-to-GDP ratio and a significant backlog of forex forwards owed to businesses.

He stated that these improvements are critical for stabilising the economy and fostering long-term growth.

He stated that without the necessary reforms implemented by his administration, the economy would have suffered a significant collapse.

Tinubu emphasised the importance of these reforms in stabilising the economy and preventing further decline.

He stated, "The economy is undergoing the necessary reforms to truly serve us better and more sustainably. If we do not correct the fiscal misalignment that caused the current economic downturn, our country will face an uncertain future and the risk of unimaginable damage." Thanks to the reforms, our country received more than $30 billion in foreign direct investment last year.

"The Central Bank's more disciplined approach to monetary policy management has ensured that our foreign exchange market is stable and predictable. We inherited a reserve worth over $33 billion 16 months ago. Since then, we have repaid the inherited $7 billion forex backlog. We have cleared more than N30 trillion in ways and means debt. We reduced our debt service ratio from 97% to 68%. Despite this, we have managed to maintain our foreign reserve at $37 billion. We continue to fulfil all of our obligations and pay our bills.

The President also emphasised that rising living costs, particularly food prices, are a major concern in Nigeria and around the world.

He reassured citizens that the government is actively working to address and reduce these costs, easing the financial burden on families.

He thanked several state governors for their support of the agricultural program and encouraged others to invest in mechanised farming. The President also announced that the federal government will supply fertilisers and farm equipment to boost agricultural productivity.

He also revealed that a local plant to assemble 2,000 John Deere tractors and other farm tools has been approved, with a six-month completion timeline.

In May 2023, the Senate approved former President Muhammadu Buhari's request for Ways and Means Advances restructuring in the amount of N22.7 trillion extended by the Central Bank of Nigeria to the federal government.