US Govt Ready To Discuss Nigeria’s N87trn Debt With Tinubu

The United States Deputy Treasury Secretary, Wally Adeyemo, has revealed the readiness of the United States Government to discuss Nigeria’s debt burden.

But Adeyemo said in an interview on Arise TV, monitored by THE WHISTLER that President Bola Tinubu must ensure a transparent approach in the management of proceeds of the fuel subsidy removal which cost the country over N400bn monthly of government revenues.

The Debt Management Office (DMO) puts the country’s debt as of June 2023 at $113.4bn or N87.37trn in local currency.

The debt office said $43.15bn or N33.24trn of the public debt is owed to external creditors.

When Tinubu took over office in May, he described the debt profile, which was $108.29bn (N49.85trn) in March 2023 as unsustainable.

“It is important to recognize the previous government increased the debt for Nigeria, but the important decision your government made in terms of ending the fuel subsidy is going to free more fiscal space for Nigeria going forward.

“The question is how are they going to use that fiscal space? It needs to be done in a transparent way that people see that the money is being used to both invest and making sure you over time bring down your debt burden but also invest in infrastructure, be it digital or physical infrastructure, education and other things that Nigeria needs going forward,” Adeyemo said.

The US Deputy Treasury Secretary said the key is that institutions like the World Bank, the United States and her partners are willing to work with Nigeria.

“It is something we are ready to do and talk about with the Nigerian government in order to ensure that we are partners in growing the economy,” said Adeyemo.

Adeyemo said Nigeria’s economy is poised to grow if the right decisions are made to unlock the potentials of businesses and entrepreneurs.