Nigeria’s Non Oil Revenue up amidst Debt Service reduction- Finance Minister
Nigeria’s fiscal authorities have boasted about significant achievements saying that the Country has recorded a decline in debt service amidst improvement in non-oil revenue.
Finance and Coordinating Minister of the Economy Wale Edun, dropped these positive developments while giving an overview of the performance of the Nigerian economy for the first half of 2024 Thursday in Abuja.
He said debt service ratio has dropped from a whopping 97% in June 2023 to 68% in 2024.
He noted that the drop in debt servicing costs frees up significant resources for critical sectors such as infrastructure, education, healthcare, and social services, adding that the development hasIt also enhanced government’s credibility with investors.
The Minister said Nigeria’s overall debt, which involves a combination of domestic and foreign obligations debt has dropped significantly, stressing that the dollar debt has also decreased from $181 million to $98 million.
Edun attributed this feat to prompt payment of contractors and the government’s exit from the Ways and Means financing scheme.
On the revenue front, non-oil income has witnessed a dramatic growth, outpacing the previous year’s performance by a remarkable 30%, which according to him is above the budgeted figure for the first half of 2024.
The minister emphasised the importance of diversifying revenue sources away from oil, highlighting the government’s commitment to tax reforms. The target is to nearly double government revenue as a percentage of GDP from around 14-15% to approximately 25%.
“We are satisfied with the progress made so far as the data-driven approach adopted by the government to steer the economy on the right path is working”, he said.
