Nigeria’s debt-to-GDP ratio to reach 42% by 2026 – IMF
The International Monetary Fund has forecast that the ratio of the Nigerian government’s gross debt to gross domestic product will rise to 42% by 2026, from 35.7% in 2021.
The IMF said so in the October 2021 fiscal surveillance report posted on its website.
He said the country’s gross debt-to-GDP ratio would drop from 35.7% in 2021 to 36.9% in 2022, 37.7% in 2023, 39.1% in 2024 and 40.6% in 2025.
According to the report, gross debt includes overdrafts of the Central Bank of Nigeria and debts of the Asset Management Corporation of Nigeria.
He said the ratio of government revenue to GDP would rise from 7.2% in 2021 to 6.5% in 2026, while the ratio of government expenditure to GDP would rise from 13.3% in 2021 to 12.6% in 2026..
The IMF said the ratio of general government net debt to GDP will rise from 35.3% in 2021 to 41.8% in 2026.
According to the report, net debt includes overdrafts of CBN and debts of AMCON.
“Government overdrafts and deposits at the Central Bank of Nigeria are almost canceled out, and the debt of the Asset Management Corporation of Nigeria is roughly halved,” he added.
The report says that for low-income developing countries like Nigeria, average gross debt in 2021 would likely remain stable at nearly 50% in 2020, while debt vulnerabilities “are expected to be high with a borrowing margin. smaller and smaller “.
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