Debt-service-to-revenue has dropped from 100 percent to 40 percent, according to President Tinubu. In his second-year anniversary speech delivered on Thursday, Tinubu noted that the reforms initiated by his administration have not just reduced debt servicing but also raised states revenue by N6 trillion.
“Our debt position is improving. While foreign exchange revaluation pushed our debt-to- GDP ratio to around 53%, our debt service-to-revenue ratio dropped from nearly 100% in 2022 to under 40% by 2024. We paid off our IMF obligations and grew our net external reserves by almost 500% from $4 billion in 2023 to over $23 billion by the end of 2024,” the president said.
“Thanks to our reforms, state revenue increased by over N6 trillion in 2024, ensuring that subnational governments can reduce their debt burden, meet salaries and pension obligations on a timely basis, and invest more in critical infrastructure and human capital development.”