Nigeria’s government gross debt to Gross Domestic Product ratio is expected to climb to 42 percent by 2026, up from 35.7 percent in 2021, according to the International Monetary Fund.
This was stated by the IMF in its Fiscal Monitor Report for October 2021, which was published on its website.
According to the report, the country’s gross debt-to-GDP ratio will rise from 35.7 percent in 2021 to 36.9% in 2022, 37.7% in 2023, 39.1% in 2024, and 40.6 percent in 2025.
Overdrafts from the Central Bank of Nigeria and obligations of the Asset Management Corporation of Nigeria are included in the gross debt, according to the report.
The general government revenue-to-GDP ratio would fall from 7.2% in 2021 to 6.5 percent in 2026, while the general government expenditure-to-GDP ratio would fall from 13.3% in 2021 to 12.6 percent in 2026, according to the report.
The IMF report also showed the general government’s net debt-to-GDP ratio will rising from 35.3% in 2021 to 41.8 percent in 2026.
According to the report, the net debt includes overdrafts from the CBN and liabilities of AMCON.
“The overdrafts and government deposits at the Central Bank of Nigeria almost cancel each other out, and the Asset Management Corporation of Nigeria debt is roughly halved,” it added.
According to the report, average gross debt in low-income developing nations like Nigeria will likely stay steady in 2021 at around 50% of GDP, while debt vulnerabilities “are predicted to be high, with the opportunity for new borrowing becoming smaller.”
Ada Peter
