A review of the Nigerian government’s newly released debt management strategy has revealed that the country’s debt-to-Gross Domestic Product (GDP) ratio rose sharply to 52.7%.
This figure surpasses Nigeria’s self-imposed debt limit of 40%, according to documents published by the Debt Management Office (DMO).
“The report shows that the debt-to-GDP ratio stood at 40.57% in December 2023, but climbed to 52.25% by the end of 2024, breaching the government’s fiscal benchmark.
Although Nigeria has overshot its own target, the report noted that the ratio still falls below the 70% threshold set by the International Monetary Fund (IMF) under its Market-Access Country Debt Sustainability Framework.
The DMO attributed the surge to increased borrowings, the issuance of promissory notes, and advances obtained from the Central Bank of Nigeria (CBN) through its Ways and Means facility.. . Continue..Reading. .
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