Wale Edun, the minister of finance and coordinating minister of the economy
Wale Edun, minister of finance and coordinating minister of the economy, says Nigeria’s heavy debt service costs are a result of past borrowing.
In an op-ed on Monday, Edun noted that despite the progress made, tough realities persist, particularly heavy debt service costs that consume a larger-than-ideal share of Nigeria’s revenues.
“This is the consequence of past borrowing and elevated interest rates. At the same time, Nigeria’s fiscal revenue-to-GDP ratio, at about 10 per cent after rebasing, remains one of the lowest in Africa,” he said.
“This limits government resources for essential services like health, education, and infrastructure.”
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The minister said that a stable economy is crucial, but stability alone is insufficient, adding that to deliver inclusive prosperity, growth must be anchored in sectors that generate jobs and opportunities.
On October 1, President Bola Tinubu said Nigeria’s debt service-to-revenue ratio has reduced from 97 percent to below 50 percent.
In November 2024, Tinubu said Nigeria’s debt service-to-revenue ratio reduced from 97 percent to 65 percent.
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‘NIGERIA’S OIL PRODUCTION REBOUNDED TO 1.68M BARRELS PER DAY’
Edun said the government is providing necessary incentives to revive investments in the oil and gas industry, with production rebounding to 1.68 million barrels per day.
“In agriculture, we are boosting food supply, reducing reliance on imports, and ensuring farmers have security and access to markets,” he said.
“We are encouraging investment in factories and strategic value chains, creating employment for our young and dynamic workforce.
“We are investing in technology and the creative sector to harness the energy of our youth and position Nigeria as a hub of innovation.
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“In addition, we are expanding exports beyond oil by tapping into the global demand for critical minerals.”
The minister said Nigeria is leveraging public-private partnerships to attract private capital for infrastructure development, citing projects like the Ajaokuta-Kaduna-Kano gas pipeline and fibre expansion.
Edun added that Nigeria aims to achieve 7 percent growth by 2027/2028 through collaborative efforts between government, the private sector, and citizens, focusing on deepening resilience, broadening opportunities, and improving daily life.
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