The Federal Government has unveiled plans to refinance its high-interest debts as part of efforts to cut Nigeria’s soaring debt service costs and ease fiscal pressure on public finances.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this during the 55th Annual Conference of the Institute of Chartered Accountants of Nigeria (ICAN) in Abuja. He explained that the debt refinancing plan aligns with President Bola Tinubu’s broader economic reform agenda aimed at restoring macroeconomic stability, attracting investment, and driving inclusive growth.
“Efforts are underway to refinance expensive debts and reduce both debt service obligations and borrowing costs,” Edun stated. He revealed that Nigeria’s debt service burden has surged sharply, with treasury bill rates rising from 8% in 2023 to nearly 24%, while external debt servicing has increased from ₦2.7 trillion to ₦6.7 trillion in 2024.
The minister said the initiative is part of wider reforms to boost revenue, formalise the informal economy, expand the tax base, and automate public revenue collection. He added that early signs of recovery are emerging, with GDP growth rising to 4.23% in Q2 2025 from 3.48% the previous year.
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Industrial output also nearly doubled to 7.45%, supported by stabilised exchange rates and falling inflation, which dropped to 20.12% in August.
To close funding gaps, the government is turning to debt restructuring and private sector partnerships through initiatives such as the Highway Development and Management Initiative (HDMI) and Project Bridge — a $2 billion World Bank and AfDB-backed programme to expand Nigeria’s digital and transport infrastructure.
