Nigeria’s Debt-To-GDP Ratio To Hit 42% By 2026 – IMF

Nigeria’s Debt-To-GDP Ratio To Hit 42% By 2026 – IMF
IMF MD, Kristalina Georgieva
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The International Monetary Fund (IMF) has projected that Nigeria’s government gross debt to Gross Domestic Product ratio will rise to 42% by 2026 from 35.7% in 2021.

The IMF made this projection in the October 2021 Fiscal Monitor Report published on its website which was obtained by Africa Daily News, New York.

It predicted that the country’s gross debt-to-GDP ratio would increase from 35.7 percent in 2021 to 36.9 percent in 2022, 37.7 percent in 2023, 39.1 percent in 2024, and 40.6 percent in 2025.

According to the report, the gross debt includes overdrafts from the Central Bank of Nigeria and liabilities of the Asset Management Corporation of Nigeria.

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It said the general government revenue-to-GDP ratio would decrease from 7.2 percent in 2021 to 6.5 percent in 2026, while the general government expenditure-to-GDP ratio would decreased from 13.3 percent in 2021 to 12.6 percent in 2026.

The IMF said the general government net debt-to-GDP ratio would increase from 35.3 percent 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.

The report said for low-income developing countries like Nigeria, average gross debt in 2021 would likely remain stable at almost 50 percent in 2020, while debt vulnerabilities ‘are expected to be high with the room for more borrowing getting smaller’.

 

AFRICA DAILY NEWS, NEW YORK

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