Nigeria’s Economic Growth Allows Debt Payment Without Central Bank Loans, Says Finance Minister

Abuja, Nigeria – Nigeria’s Minister of Finance, Wale Edun, announced on Tuesday that the country is now financially stable enough to service its debts without relying on the Central Bank’s “ways and means” advances. This statement was made during a presentation marking one year of the Ministry’s performance under President Bola Tinubu’s administration.

Minister Edun highlighted that Nigeria’s economy is experiencing significant growth, with the gross domestic product (GDP) increasing by 2.99% in real terms in the first quarter of 2024. This growth surpasses the 2.31% recorded in the first quarter of 2023, indicating a rejuvenated economy under President Tinubu.

“The government can now pay its way. The government is paying its debt service without resorting to ways and means, particularly international debt service,” Edun stated, emphasizing the improved fiscal health of the country.

Despite this positive economic trajectory, Nigeria continues to face challenges with inflation. In April, the country’s headline and food inflation rates rose to 33.69% and 40.53%, respectively, exacerbating economic difficulties for many Nigerians.

In March, the Debt Management Office reported that Nigeria’s foreign and domestic debt had surged to N97.341 trillion by the fourth quarter of 2023.