President Bola Tinubu has disclosed that servicing debt at 97% ratio was unsustainable.
This is even as he disclosed that Nigeria’s debt service-to-revenue ratio has dropped from approximately 97% to 65% since he took office 17 months ago.
He made this known during the swearing-in ceremony for seven new ministers at the State House in Abuja, highlighting the significant economic challenges faced by the country.
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.
“For us it was a challenge when the nation was servicing its debt with 97 percent of its revenue, it’s nothing but the end of the cliff, but today I can report to you that we brought that one down and it is at 65% and we have never defaulted in paying or meeting all obligations both foreign and domestic…
“We have our head above the water, all other countries too around us and across the world are facing challenges. In fact there’s a lot of crime in Europe and America.
“What pandemic has brought to the economies of the world but we are navigating through this and we are working hard. You will be part of criticism and abuse, don’t worry stay focused, stay resilient. Your thanks will come with the history of growth and prosperity for this country”, he added.
He admitted that despite the challenges, he faces the job of re-engineering and retooling the economic path of the country.
“Yes, cost of living has gone up, I recognise that and we have satisfied the obligation of paying a new minimum wage across the board.
“It is my joy and honour to be part of you and to be responsible for over 200 million people in this county. We have taken the bull by the horns. We have stopped the scavengers. We are going to stop completely the profiteers and smugglers of our resources across the country. we are not going to run away from our responsibility, we are going to face it and we have been facing it headlong, with you as a member of this team, I am proud and honoured that I am leading you and we will lead to success and prosperity.
“All I can say is welcome aboard. This ship will not sink. God bless you and God bless Nigeria”, the President said.
By: Babajide Okeowo
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