Nigeria’s Finance Minister Ahmed: Nigeria's debt still within sustainable limits

Nigeria's Finance Minister, Budget, and National Planning Minister, Zainab Ahmed, recently addressed the nation on the state of the country's economic recovery. In her maiden edition of the State House Briefing, Ahmed highlighted how the Economic Sustainability Plan played a significant role in steering Nigeria out of recession, with the country recording a growth of 0.11% in the fourth quarter of 2020. Reflecting on the challenges faced in 2020 due to the COVID-19 pandemic and the crash in oil prices, Ahmed noted that Nigeria had accurately projected the recession and subsequent exit from it. The minister acknowledged that the pandemic and lockdown measures had severely impacted commercial activities, businesses, and trade, leading to a rise in vulnerability among the population. To address these challenges, President Muhammadu Buhari took swift action by establishing special committees to manage the health crisis and formulate economic strategies. Ahmed, along with key ministers, proposed measures to streamline non-critical expenditures, resulting in the removal of fuel subsidies and cuts in certain investments, enabling redirected funds to critical sectors like healthcare. President Buhari instructed the design of an Economic Sustainability Plan led by Vice President Yemi Osinbajo, aimed at mitigating the recession's effects. The plan, approved in July and implemented promptly, was instrumental in Nigeria's recovery. The gradual easing of lockdown restrictions played a crucial role in reviving commercial activities, allowing businesses to reopen and offices to resume operations. Moreover, collaborative efforts between the federal government and states, including fiscal incentives and relief measures, supported the economic recovery. One significant initiative was providing states with a 12-month debt service obligation moratorium, enabling them to allocate resources to essential services. International partnerships with organizations like the IMF, African Development Bank, World Bank, and Islamic Development Bank facilitated critical spending to stimulate the economy. The National Assembly's swift approval of amendments to the Medium-Term Expenditure Framework and the budget, along with support for the Economic Sustainability Plan, demonstrated a unified approach to navigating the crisis. Additionally, the passage of the 2020 amendment budget, the 2021 Appropriation Act, and the 2020 Finance Bill underscored the government's commitment to economic stability and growth. The Finance Bills of 2019 and 2020 focused on providing fiscal relief to businesses, including tax reductions for small and medium enterprises, aiming to bolster economic resilience. Ahmed emphasized the importance of strengthening small businesses to ensure sustainable economic growth in Nigeria.