FG to reduce debt service burden through refinancing

By Emma Ujah, Abuja Bureau Chief

The Federal Government plans to trim its existent indebtedness work load by refinancing existing debts.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this astatine the opening of the Annual Conference of the Institute of Chartered Accountants of Nigeria (ICAN) successful Abuja connected Tuesday.

According to him, “Efforts are underway to refinance costly indebtedness and frankincense trim some the indebtedness work outgo and the outgo of borrowing.”

The curate noted that portion the reforms undertaken by the contiguous medication had importantly raised revenue, indebtedness servicing had besides risen sharply.

“Our fiscal presumption has improved significantly. Revenue has grown by implicit 70% successful nominal presumption implicit the past 2 years, driven by the liberalisation of the overseas speech and substance markets, and automation-led gross postulation nether the Renewed Hope Agenda,” Edun said.

“It is, however, important to enactment that expenditure pressures persist due to the fact that indebtedness work costs person surged. Treasury measure rates roseate from 8% successful 2023 to astir 24%, portion outer indebtedness work astir tripled from a budgeted ₦2.7 trillion to ₦6.7 trillion successful 2024.”

He added that arsenic a resilient and inclusive economy, Nigeria was charting a transformative way toward becoming diversified and globally competitive.

“Our strategical priorities see important betterment successful non-oil export growth, enhancing home productivity, and fostering inclusive prosperity by ensuring that susceptible Nigerians are not near unprotected,” helium said.

“We are transitioning to an system anchored connected openness, competition, and efficiency—where the backstage assemblage is the motor of maturation and the authorities efficiently plays its relation arsenic foreseer and enabler.

“Our maturation strategy is centred connected productive superior enactment done accrued backstage investment. We are moving to execute output maturation of 7.0% GDP by 2027/2028, thereby enabling the removal of millions of our citizens from poverty.”

The station FG to trim indebtedness work load done refinancing appeared archetypal connected Vanguard News.