President Bola Tinubu announced that the federal government has cleared its Ways and Means debt, which amounts to over N30 trillion.
President Tinubu made this disclosure during the 64th Independence Day address to the Nation today.
Thr President said the country is making progress in overcoming fiscal imbalances, including a high debt-to-GDP ratio and a substantial backlog of forex forwards owed to businesses.
He indicated that these improvements are vital for stabilizing the economy and fostering sustainable growth.
He noted that without the essential reforms implemented by his administration, the economy would have faced a significant collapse.
Tinubu emphasized the importance of these reforms in stabilizing the economic landscape and preventing further deterioration.
He said, “The economy is undergoing the necessary reforms and 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. Thanks to the reforms, our country attracted foreign direct investment of worth more than $30 billion in the last year.
“The more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in our 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 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills.”
The President also emphasized the rising cost of living, particularly food prices, as a significant concern both in Nigeria and worldwide.
He reassured citizens that the government is actively taking steps to address and reduce these costs to alleviate the financial burden on families.
He commended several state governors for their support of the agricultural program and urged others to invest in mechanized farming. The President also announced that the Federal Government is supplying fertilizers and farm equipment to enhance agricultural productivity.
Additionally, he revealed that a local plant for assembling 2,000 John Deere tractors and other farm tools has been approved, with a completion timeline of six months.
The Senate in May 2023, approved the request of former President, Muhammadu Buhari Ways and Means Advances restructuring to the tune of N22.7tn extended by the Central Bank of Nigeria to the Federal Government.
