Nigeria’s Minister of Finance Announces Government’s Commitment to Financial Discipline and Debt Management

Nigeria’s Finance Minister, Wale Edun, Announces Government’s Commitment to Financial Discipline

In a recent announcement, Nigeria’s Minister of Finance, Wale Edun, revealed that the federal government is taking significant steps to avoid using Ways and Means to fund external debt service and other financial obligations. This decision was made during a briefing with state house correspondents following the Federal Executive Council meeting chaired by President Bola Tinubu.

Edun assured that the government has not sought funding from the Central Bank of Nigeria to meet any financial liabilities, including external debt service and share capital cash calls. He emphasized the administration’s dedication to robust revenue collection and strict expenditure controls.

During the briefing, Edun also highlighted the inherited debt of N22.7 trillion in outstanding Ways and Means, which is currently undergoing a forensic audit to accurately assess liabilities and interest payments. Despite a 15% reduction in Nigeria’s total debt stock in dollar terms, the total debt stock in naira terms has increased by 25% due to exchange rate fluctuations.

The government’s focus on financial discipline and effective debt management is evident through these developments. Edun expressed confidence in the revamped financial strategies, stating that salaries, external debt servicing, and other obligations are not reliant on Ways and Means.

With a commitment to reducing reliance on Central Bank funding and implementing technology-driven revenue collection and expenditure controls, the Tinubu administration aims to create a stable and resilient financial environment. This move is viewed positively by rating agencies and investors, indicating effective debt management and financial stability in Nigeria.