The Minister of Finance, Mrs. Kemi Adeosun,has promised that there will be no cause for alarm as the Federal Government’s revenue and debt management strategy would mitigate its debt service risk to fast-track development.
The Minister, who made the statement as an assurance to the welcomed the advice of Nigeria’s international development partners, including the International Monetary Fund (IMF).
Mrs. Adeosun said that the strategy would achieve a number of objectives that include: mobilising revenue whilst reducing the debt burden by lengthening the maturity profile, increasing foreign exchange reserves, reducing crowding-out of the private sector, and creating savings in debt service cost.
In addition, the Minister also noted that the Federal Government was refinancing its inherited debt portfolio, adding that it will lead to significant benefits, particularly a reduction in costs of funds.
Adeosun also stated that a key element of the economic reform strategy was the mobilization of revenue to improve the debt service to revenue ratio. This, she noted, was being undertaken through a number of initiatives including, the plugging of leakages and the deployment of technology revenue management.