- Your cart is empty
- Continue Shopping
As Nigeria’s debt burden continues to grow, the Federal Government has been left with fewer funds to allocate to critical sectors. In a national broadcast to mark Nigeria’s 64th Independence Anniversary, President Bola Tinubu stated that his administration had reduced the debt service-to-revenue ratio from 97% to 68%. However, CBN data shows that the ratio has risen to 162% in the first half of 2024.
Last year, Tinubu emphasized the unsustainable nature of the country’s debt profile, stating that using 90% of revenue to service debt was a “recipe for destruction.” Analysts at Cowry Research have warned that Nigeria’s debt service costs will likely continue to rise, as financing costs consume a larger portion of government revenues amid a weak naira and high-interest rate environment.
Given the current trajectory, experts have called on Nigeria to initiate debt negotiations with its creditors. Tilewa Adebajo, Chief Executive Officer of CFG Advisory, noted that the country’s debt servicing now exceeds both recurrent and capital expenditures, putting the country in a precarious position. President Tinubu urged world leaders to prioritize debt forgiveness for Nigeria and other developing countries, during the United Nations General Assembly in New York. He reiterated that without such concessions, economic progress in the global South would remain constrained.
Source: Reportafrique.com
