Nigeria’s Debt Management Office (DMO) expects improvements in government revenues through the work of the Committee on Revenues set up by the president.
Recent policies, such as the removal of fuel subsidy and the unification of the Naira exchange rates, have yielded immediate benefits but also created some challenges that the government is trying to alleviate, especially for the vulnerable in society.
The DMO emphasized the importance of revenue generation to reduce the country’s debt burden and achieve sustainable growth with increased employment opportunities and higher income levels.
The reversal of certain policies has led to higher revenues for the government, positively impacting the distribution of funds through the Federal Accounts Allocation Committee (FAAC).
While Nigeria’s debt-to-GDP ratio remains relatively low, the debt service to revenue ratio is a concern, indicating the need for a stronger focus on revenue improvement.
Opinion: The efforts by Nigeria’s government to address revenue generation are crucial for managing the country’s debt burden and fostering sustainable economic growth. The policy changes made, though beneficial, also pose challenges that require careful handling to support vulnerable populations and avoid deterioration in economic and social indicators.