In his 64th Independence Day address, President Bola Tinubu announced that the federal government has cleared over N30 trillion in Ways and Means debt. He emphasized that Nigeria is gradually overcoming fiscal challenges, including a high debt-to-GDP ratio and a significant backlog of foreign exchange forwards owed to businesses.
The debt restructuring began under the previous administration when, in May 2023, the Senate approved a request to restructure N22.7 trillion that the Central Bank of Nigeria (CBN) had extended to the federal government. An additional N7.3 trillion was securitized by the National Assembly, bringing the total Ways and Means debt to N30 trillion.
Finance Minister Wale Edun confirmed that the government has repaid up to N7 trillion in Ways and Means advances and will not rely on this debt for future financial obligations.
President Tinubu warned that without the necessary reforms, the economy could have faced collapse. 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 led to the current economic downturn, our country will face an uncertain future and the peril of unimaginable damage.” He noted that these reforms have attracted over $30 billion in foreign direct investment over the past year.
He highlighted the disciplined monetary policy management by the CBN, which has fostered stability in the foreign exchange market. “We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion. We have cleared the Ways and Means debt of over N30 trillion. We have reduced the debt service ratio from 97% to 68% while maintaining foreign reserves at $37 billion, meeting all our obligations and paying our bills,” he said.
President Tinubu also addressed the rising cost of living, particularly food prices, both locally and globally. He assured citizens that the government is implementing measures to alleviate these costs. He commended state governors who support agricultural initiatives and urged others to invest in mechanized farming. Additionally, he announced that the federal government is supplying fertilizers and farm equipment, and that a local assembly plant for 2,000 John Deere tractors and other tools has been approved, with completion expected in six months.
