Nigeria's N30 trillion Ways and Means debt fully repaid - President Tinubu

President Bola Tinubu announced the clearance of the country's Ways and Means debt, totalling over N30 trillion.

He made this known in a nationwide address on Tuesday morning, October 1, 2024, marking Nigeria's 64th Independence anniversary.

According to President Bola Tinubu, the Central Bank's more disciplined approach to monetary policy management has brought stability and predictability to the 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. We have also reduced the debt service ratio from 97% to 68%. Despite these efforts, we have managed to keep our foreign reserves at $37 billion," he stated.

Ways and Means is the money that the CBN lends directly to the federal government which according to the CBN Act must not exceed five per cent of the previous year's actual revenue of the federal government. However, the peg was surpassed, bringing the total Ways and Means debt to N30 trillion.

In July, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), stated that the country is now shouldering the burden of the loan.

President Bola Tinubu highlighted that Nigeria's economy is currently undergoing crucial reforms aimed at making it stronger and more sustainable. He cautioned that failing to address the fiscal misalignments that contributed to the economic downturn could lead the country into a precarious future with potentially severe consequences.

Tinubu also pointed out that, due to these reforms, Nigeria has attracted more than $30 billion in foreign direct investments over the past year, reflecting growing confidence in the nation's economic prospects.