Nigeria’s debt service crashes, revenue rises – Finance minister, Edun

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Edun Berita

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The Minister of Finance, Wale Edun, says the Federal Government has recorded significant strides in its fiscal management, with a dramatic decline in debt service and a surge in non-oil revenue. Edun made this known on Thursday in Abuja during an assessment of the economy’s first-half performance.

The minister said the debt service ratio has plunged from a staggering 97% in June 2023 to a more manageable 68% in 2024. According to him, the substantial reduction in debt servicing costs frees up significant resources for critical sectors such as infrastructure, education, healthcare, and social services, adding that it also enhances the government’s credibility with investors and international financial institutions.

On the revenue front, non-oil income has witnessed unprecedented growth, surpassing the previous year’s performance by a remarkable 30%. This is significantly above the budgeted figure for the first half of 2024. The minister emphasized the importance of diversifying revenue sources away from oil, highlighting the government’s commitment to tax reforms. The target is to nearly double government revenue as a percentage of GDP from around 14-15% to approximately 25%.

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