The Debt Management Office (DMO) has stated that Nigeria’s debt-to-Gross Domestic Product (GDP) ratio is within the specifications of the World Bank and International Monetary Fund (IMF) for the country’s peer group.
Director-General of the DMO, Patience Oniha, made this clarification in an interview with Pathway News on Tuesday in Abuja.
Oniha addressed recent media reports suggesting Nigeria’s debt-to-GDP ratio of 52% exceeded the World Bank/IMF’s prudential ceiling for similar countries. She explained that the prudential ceiling for such countries stands at 55%, not 40%.
Emphasizing the importance of revenue generation, Oniha underscored that enhancing revenue was crucial for accelerated socio-economic development and debt sustainability.
“The recent focus by the Federal Government on revenue generation is a step in the right direction to alleviate our debt burden. Growth, development, and debt sustainability hinge significantly on revenue considerations,” she stated.
Oniha urged the government to prioritize fiscal consolidation measures, noting that efforts to attract foreign exchange inflows would bolster external reserves and stabilize the naira exchange rate.
Pathway News reported recently that Nigeria’s total debt stock rose to N121.67 trillion in March from N97.34 trillion in December 2023, reflecting an increase of N24.33 trillion. Oniha attributed this rise partly to exchange rate fluctuations and the securitization of N4.90 trillion related to the N7.3 trillion Ways and Means Advances approved by the National Assembly.
She clarified that the total debt stock encompasses both domestic and external debts of the 36 states and the Federal Capital Territory (FCT).
