President Bola Ahmed Tinubu, on Tuesday, disclosed that the Federal Government has cleared over N30 trillion in ways and means advances.

Tinubu spoke on Tuesday while addressing the nation to commemorate the country’s 64th Independence Day.

Ways and means is a loan facility through which the Central Bank of Nigeria (CBN) provides short-term financing to cover the federal government’s budget shortfalls.

The Senate, had in May 2023, approved the securitisation of the N22.7 trillion loan request made by former President Muhammadu Buhari.

The National Assembly also approved Tinubu’s request for the securitisation of outstanding N7.3 trillion ways and means debt balance in December 2923

In the first quarter (Q1) of 2024, the country’s public debt increased to N121.67 trillion.

READ ALSO: We Attracted Over $30bn Foreign Investments In 2023 – Tinubu

According to the Debt Management Office, the rise in Nigeria’s public debt stock is partly due to new borrowing, as well as ways and means securitisation.

Minister of Finance, Wale Edun, had also said the Federal Government is not relying on ways and means to fund external debt service or other liabilities.

Also, while giving his speech, Tinubu said there has been a gradual reduction in the debt service ratio by about 29 percent.

“We have cleared the ways and means debt of over N30 trillion. We have reduced the debt service ratio from 97 per cent to 68 per cent,” the president said.

According to Tinubu, his administration has also been able to pay bills, clear the foreign exchange (FX) backlog of $7 billion his government inherited and raise Nigeria’s foreign reserves to $37 billion, despite inheriting over $33 billion foreign reserves 16 months ago.

He said the country is gradually leaving the fiscal imbalances such as huge debt-to-gross domestic product ratio.