Edun: Tinubu Govt Has Revamped Nigeria’s Economy 

.Says govt’s efforts resulted in cancellation of legacy debt burden

.Discloses Nigeria’s total debt stock in US dollar terms decreased by 15% in Q1 2024

Deji Elumoye in Abuja 

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on Tuesday painted a bright picture of the nation’s economy saying Nigeria’s economy has been revamped, citing positive trends in key economic indicators.

Edun made the submission while speaking to reporters at the State House after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu.

The Minister explained the worrisome indices that had beclouded the true state of the economy, adding that the administration had straightened out practices that had hitherto burdened the economy.

According to him, the country’s total debt stock in US dollar terms decreased by 15 per cent in the first quarter of 2024, a development he described as “very positive.” 

When factoring in exchange rate movements and domestic debt issuance, the total debt stock in Naira terms, however,  increased by 25 per cent.

Edun stressed that the government’s revenue collection had been robust, due to technology-driven initiatives, and that expenditure controls were also being implemented. 

He noted that the federal government had not relied on ways and means to fund its operations, a departure from past practices.

The Minister highlighted that the current administration inherited a legacy of N22.7 trillion in outstanding ways and means, which are being audited and securitized.

Edun further explained that despite this, the current ways and means deficit stands at N3.4 trillion, which is offset by operating surpluses from revenue-generating agencies.

His words: “I gave the Council a verbal briefing that I’m given now, and I will start by saying that when we interrogate the figures over the first quarter of this year, starting end of December and end of March. If we want to be positive, all 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 debt stock, the total debt stock of Nigeria in US dollar 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’re a country that has petro-dollars. We have ability to earn in dollars. So it’s highly relevant, that we look at what is our exposure in dollar terms. On the other hand, given the exchange rate movements, even though there was like an N8 trillion increase in actual debt issuance, the total debt stock, when you count domestic debt which, as I said there was increase in issuance when you count the total external debt and domestic debt in Naira terms, it has increased by 25 per cent. 

“That’s mainly due 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, credit is all about the revenue to service and of course, to use those funds properly, judiciously, accountably and in a way that gives positive returns.

“I can say quite categorically that under President Bola Tinubu, the federal government does not rely on ways and means in order to fund itself. At no time have we gone to Mr. President and requested permission to seek funding from Central Bank to pay anybody, be it external debt service, be it share capital cash calls, or any other of the liabilities that the government has.”

More details later…