Tinubu Claims To Have Cleared Over N30 Trillion in Ways and Means Debt

Oluwasegun SanusiOctober 1, 20241 Mins read1.2k

President Bola Tinubu has claimed that the Federal Government has cleared over N30 trillion in debt accumulated through the Central Bank of Nigeria’s (CBN) Ways and Means advances, in his 64th Independence Day address to the nation.

The president hailed this as a significant step toward addressing the country’s fiscal imbalances, including a high debt-to-GDP ratio and outstanding foreign exchange obligations.

Tinubu attributed this achievement to the CBN’s disciplined approach to monetary policy management, which he credited for bringing stability and predictability to Nigeria’s 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 and cleared the Ways and Means debt of over N30 trillion,” said.

He also noted a reduction in the country’s debt service ratio from 97% to 68%, while maintaining foreign reserves at $37 billion.

“Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bill.”

The president acknowledged the rise in the cost of living, particularly in food prices, as a concern, and reassured Nigerians that his administration is actively addressing the issue.

He commended certain state governors for their support in agricultural initiatives and urged others to invest in mechanised farming.

Tinubu also announced that the Federal Government is supplying fertilisers and farm equipment, and has approved a local assembly plant for 2,000 John Deere tractors, which is expected to be completed in six months.

Earlier this year, Finance Minister Wale Edun confirmed that the government had repaid up to N7 trillion of the debt, vowing that the administration would not rely on such advances for future financial obligations.

However, Nigerians are groaning under the present administration due to the untold hardship that they are facing, as a result of the removal of fuel subsidy and the frequent increase in fuel prices, electricity tariffs and the different monitory polices implemented by the CBN.

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