Nigeria's Debt Figure is positive, says Minister

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has been speaking on Government Finances and Debts, including Ways and Means. The Minister briefed State House Correspondents shortly after the Federal Executive Council Meeting on Tuesday in Abuja.

“When we interrogate the figures over the First Quarter of this year, starting from middle of December 2023 and the end of March this year; if we want to be positive, what we will say is that the glass is half full.

“We are halfway there. If not, we can be negative and try and say the glass is half empty. Why do I say this? The total debt stock of Nigeria in Dollars terms fell by 15 per cent, that is very positive.

“Any Rating Agency, any Creditor, any Investor looking at that will see it as a positive move.

“We are a Country that has Petrodollar, we have ability to earn in Dollars. So it’s highly relevant that we look at what is our exposure in Dollars Terms,” Edun said.

According to him, on the other hand, the Exchange Rates increased by 8trn in actual Debt Issuance, and the Total External Debt and Domestic Debt in Naira Terms had increased by 25 per cent.

“That brings me to the Foreign Exchange Movement which can change tomorrow, as we know. Linked to that is the all important question of the Government’s Capacity to pay its way.

“Debt is all about the Revenue to Service it, and of course to use those Funds properly, judiciously,  accountably and in a way that gives positive Returns.

“At no time have we gone to Mr President to seek permission to go the the Central Bank to pay anybody, be it External Debt Service, be it Share Capital Cash Calls for any of the Liabilities that the Government has,” he said.

Edun explained that as with all Agencies, the Government was focused on ensuring that the Revenue due to it was collected robustly using Technology, avoiding blockages associated with Manual Processing, which he said had led to a very robust Revenue effort.

“Likewise, we are implementing Debts or Expenditure Controls, also very ably empowered by Technology.

“Mr President inherited a legacy of N3.4trn in Outstanding Ways and Means which have been Securitised on the eve of the entry of President Tinubu Administration.

“We are doing a Forensic Audit, we are interrogating that figure because its a Liability which we have to pay Interest on. So, any Deficit that you might see to the Consolidated Revenue Account, may be automatic debit on a figure that is still being interrogated,” said Edun.

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