During the swearing-in ceremony for seven new ministers at the Council Chamber of the State House in Abuja, Tinubu emphasized that his administration has successfully navigated the country through a precarious economic situation.
He remarked, “It was a significant challenge when the nation was dedicating 97 percent of its revenue to debt servicing, teetering on the brink of disaster.
“However, I am pleased to report that we have reduced that figure to 65 percent, and we have consistently met all our obligations, both foreign and domestic, without defaulting.
“We are managing to stay afloat, even as other nations around us and globally are grappling with their own difficulties.”
These statements come in light of a recent forecast from Afreximbank, which suggested that Nigeria's debt service-to-revenue ratio could escalate to 110.4 percent by 2024.
The debt service-to-revenue ratio has risen sharply, increasing from 33.8% in 2017 to an anticipated 110.4% in 2024, indicating potential challenges in fulfilling debt servicing commitments in relation to revenue generation, according to Afreximbank's 'Nigeria Country Brief 2024' report released in July.
This report examined Nigeria's economic performance, trade trends, fiscal policies, and developments within the financial sector.
It revealed that Nigeria's debt servicing expenses accounted for 66.9% (₦5.79 trillion) of the total revenue of ₦8.65 trillion during the first nine months of 2023, in contrast to 99.3% (₦4.23 trillion) for the same timeframe in 2022.
Afreximbank has indicated that the ratio may decrease to 62.6 percent by 2025, contingent upon ongoing structural reforms and effective fiscal management by the government.
President Tinubu conveyed a sense of hope regarding economic recovery, asserting that the nation is on a “promising path” despite the cost-of-living challenges resulting from several months of stringent economic reforms.
He stated, “We have taken decisive action. We have eliminated those who exploit our resources. We will completely eradicate the profiteers and smugglers operating throughout the country.
“We are not evading our responsibilities; we are tackling them directly.
“Economic recovery is imminent. We are on a favorable trajectory to achieve our aspirations, not only for ourselves but also for future generations.”
He further remarked, “In spite of the difficulties, we must commit to re-engineering and refining the economic direction of this country.
“Indeed, the cost of living has increased, and I recognize that. We have met our commitment to implement a new minimum wage across the board…we are navigating these challenges and working diligently.”
The new cabinet members were sworn in during two separate sessions—first in groups of four and then in groups of three—following the reading of their citations by the State House Director of Information, Mr. Abiodun Oladunjoye.
The initial group comprised Idi Maiha (Minister of Livestock Development), Yusuf Ata (State, Housing and Urban Development), Dr. Suwaiba Ahmad (State, Education), and Bianca Odumegwu-Ojukwu (State, Foreign Affairs).
Subsequently, Dr. Jumoke Oduwole (Industry, Trade and Investment), Dr. Nentawe Yilwatda (Humanitarian Affairs and Poverty Reduction), and Muhammadu Dingyadi (Minister of Labour & Employment) took their oaths before the President.
In a notable cabinet reshuffle on October 23, President Tinubu reassigned 10 ministers to new roles, relieved five others of their duties, and nominated seven new ministers for Senate confirmation.