Nigeria said it will save about 168 billion naira in debt servicing cost through its planned external borrowing of around $5.5 billion this month, its minister of finance has said.
Kemi Adeosun said the West African country intends to save 76.37 billion naira in debt service from the $2.5 billion planned Eurobond and 91.65 billion naira through the refinancing of outstanding 7 trillion naira treasury bills with the $3 billion borrowing from the International Capital Market (ICM). 
According to the minister, the government's revenue and debt management strategy would mitigate the country’s debt service risk and fast-track her development.
In a statement by her special adviser on media, Oluyinka Akintunde, Adeosun said the country's debt 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.
The Minister stated that a key element of the economic reform strategy was the mobilisation of revenue to improve the debt service to revenue ratio.
"This is being undertaken through a number of initiatives including, the plugging of leakages and the deployment of technology revenue management," the minister said.
According to the minister, the government's revenue and debt management strategy would mitigate the country’s debt service risk and fast-track her development.
In a statement by her special adviser on media, Oluyinka Akintunde, Adeosun said the country's debt 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.
The Minister stated that a key element of the economic reform strategy was the mobilisation of revenue to improve the debt service to revenue ratio.
"This is being undertaken through a number of initiatives including, the plugging of leakages and the deployment of technology revenue management," the minister said.
She cited the example of the Health Pay, a pilot cashless revenue project in the health sector, which recorded material increases in revenue.
"The ongoing Voluntary Assets and Income Declaration Scheme (VAIDS) was equally expected to impact positively the level of tax collections," she noted.
"The ongoing Voluntary Assets and Income Declaration Scheme (VAIDS) was equally expected to impact positively the level of tax collections," she noted.
“The difference in our economic strategy is that we are changing the mix of revenue sources available to the government from the traditional oil or debt to a combination of oil, debt and domestic revenue.
According to her, This is a long-term strategic reform which is critical to the country's future economic growth and in the short term will enable Nigeria debt service to revenue ratio to improve.
According to her, This is a long-term strategic reform which is critical to the country's future economic growth and in the short term will enable Nigeria debt service to revenue ratio to improve.
“The proposed refinancing of US$3Bn worth of short terms Treasury Bills into longer tenured international debt is expected to save N91.65 billion per annum.
“Other benefits of our revenue and debt management strategy include improvement in foreign reserves as well as reduced domestic debt demand, which will reduce crowding-out of the private sector and support the aspirations of the monetary authorities to bring down interest rates,” the Minister added.
“Other benefits of our revenue and debt management strategy include improvement in foreign reserves as well as reduced domestic debt demand, which will reduce crowding-out of the private sector and support the aspirations of the monetary authorities to bring down interest rates,” the Minister added.
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