The Debt Management Office has said that Nigeria can lower its debt service-to-revenue ratio if it generates higher revenue like Ghana, Kenya, and Angola.

According to the DMO, while Nigeria has a revenue-to-Gross Domestic Product ratio of nine per cent, Ghana, Kenya and Angola have a revenue-to-GDP ratio of 12.5 per cent, 16.6 per cent, and 20.9 per cent, respectively.

The Debt Office said this in a statement on Thursday, which was a response to the Lagos Chamber of Commerce and Industry, which had described Nigeria’s debt-to-revenue ratio as worrisome.

The statement read in part, “The attention of the Debt Management Office is drawn to a recent report by the Lagos Chamber of Commerce and Industry, which stated that ‘staying within the current Debt-to-GDP threshold is an unreliable means of calibrating Nigeria’s current debt burden’. According to the Chamber, ‘the government must review its borrowing parameters on the basis of the country’s Debt-to-Revenue Ratio, which currently calls for concerns’.

“The Federal Government of Nigeria is aware of the country’s relatively high debt service-to-revenue ratio and has published the figures over the years, as well as included them in public presentations.

It added, “The primary reason for the high debt service-to-revenue ratio is because Nigeria’s revenue base is low. Furthermore, the Government is largely dependent on the sale of crude oil, as a major revenue source. If Nigeria, with a revenue-to-GDP ratio of nine per cent, generated revenues close to countries such as Kenya, Ghana and Angola with revenue-to-GDP ratios of 16.6 per cent, 12.5 per cent and 20.9 per cent respectively, then, its debt service-to-revenue would be lower.”

According to the DMO, although Ghana, Kenya and Angola have a higher revenue-to-GDP ratio, the countries, however, have higher public debt-to-GDP, unlike Nigeria.

“This position is buttressed by the fact that the highlighted countries have higher public debt-to-GDP ratios (Kenya: 67.6 per cent, Ghana: 78.9 per cent and Angola: 136.5 per cent) compared to Nigeria (22.80 per cent) yet record relatively lower debt service to revenue ratios due to their higher revenue-to-GDP ratios,” the DMO said in the statement.

The Debt Office also said that the Federal Government needed to borrow for infrastructure development, job creation and economic growth, due to relatively low revenues.

It added that the Federal Government was implementing measures to increase and diversify revenues, which would lower the debt service-to-revenue ratio.

SOURCE:https://brandspurng.com/2022/04/15/how-nigeria-can-lower-debt-service-to-revenue-dmo/

Issokay

Nigeria's debt profile is a disaster that will eventually be the downfall of the country several years from now. Forget all the whitewashing, the failing naira and the thieving politicians will make sure the country never full recover from crushing debt. Another Greece in the making

Una welldone las las make we sell the country make everybody carry him share make them use Nigeria dey plant cannabis

After you finish speaking all these big grammars, go and pay up your debt to China,

Sell the country to Russia

I have zero idea, all I know is that you're all borrowing lords.

Sadly, the current government can only think of increasing ​tax as increasing IGR.
I'm really enjoying this government.

Set awon borrowers.

Okay

In summary, borrowing could be justifiable means if we want our a high GDP like Ghana, Kenya and Angola respectively.

Economic growth comes as a results of reasonable Individuals put in charge...

Hire me for write-ups, both brands and corporate.

Though I didn't read the write up because I wasn't there when they are borrowing and moreover I didn't benefit ₦1 from the money.

To pay the debt is for FG to tax the dead.

This is where the problem is... no one but only Peter Obi is talking about cutting cost of governance as means to raise IGR, the others are talking about raising IGR through increased taxes in a population with 33% youth unemployment and double digit inflation..

It goes to show, they have never grown anything in their lives..

Faller:
After you finish speaking all these big grammars, go and pay up your debt to China,

All this grammer are for what exactly. The tin tire me honestly

Speaking grammer and doing absolutely nothing.

Nigerians are special breed

Crucial bits

1. Our revenue base is low

2. We rely too much on oil.


Therein lies our problems.

tillaman:

Una welldone las las make we sell the country make everybody carry him share make them use Nigeria dey plant cannabis

Lol Cannabis wey u go plant wey NDLEA go come burn u waste ur own share b dat....

Basically we don't have enough money to pay our debt because our revenue base is low .

After seven years of promise to diversify.

This report is kind of an indictment of the governemt. They came with stories about raising our income. Now here we are.

Anyway, Nigeria needs better.

subsidywise18:
Crucial bits

1. Our revenue base is low

2. We rely too much on oil.


Therein lies our problems.

If revenue base is low, which money are they stealing?

lexy2014:


If revenue base is low, which money are they stealing?

The little we have.

That's why corruption is an insidious evil. Especially for Nigeria.

Also our low revenue base is why we rely on oyel money far too much

subsidywise18:


The little we have.

That's why corruption is an insidious evil. Especially for Nigeria.

Also our low revenue base is why we rely on oyel money far too much

The money that they are stealing, is it little?

lexy2014:


The money that they are stealing, is it little?

We aint earning enough in the first place.

Corruption eats the 'little' we earn.

Just be throwing around stupid statistics and telling us the obvious to justify their ignorance and failure.
Debt to Revenue ratio will be low when the debt IS NOT INCURRED TO RAISE REVENUE, simple.

When an investor like me or you approaches a bank the primary purpose is to fund productivity which in turns creates the revenue to pay such loans back and some more for his business and himself.

The government should be borrowing only to fund productivity which will expand the tax base, pump the tax receipts and create businesses and jobs for Nigerians. Any other borrowings of whatever kind will only impoverish Nigerians the more and erode the so called tax base.

This is common sense.

But as I continually sing.
When all your borrowings are geared towards 'contractors' for projects that are not commercially viable, do not create jobs or businesses and so cannot expand the economy, the result is inflation and the impoverishment of the common man from which you hope to tax. How foolish.

Let them go to the Chinese to collect their taxes since they are the ones who are getting 'everything'.... nonsense.
No serious minded, but poor country will 'contract' out its development.

I cannot take a loan to develop my farm from bank X,Y,Z and the bank will sit on my farm and dictate to me who will till the ground, give me machines I will use to farm at their discretion and the markets I will sell my produce and I hope to develop the farm..... it will never happen.

I sincerely look forward to a government that is serious about putting Nigerians to work. A government that is attractive enough for Nigerians to invest in. We have the resources to build our infrastructure. Nigerians can build their refineries and railways, power plants and dams without borrowing IF, IF, IF, IF they are part of this development and will directly profit from their establishment.

There are 30 million unemployed, able bodied youth in Nigeria that should be building the roads, railways and power plants. Government just has to figure out how to do that because that is how it was done in the developed countries we envy today. And these folks who are running their countries are the primary ones paying the taxes.

Our youth on the other hand are busy keeping the government busy with all manner of anti-social vices of horrendous nature.... because they are essentially the devil's workshop.

subsidywise18:
Crucial bits

1. Our revenue base is low

2. We rely too much on oil.


Therein lies our problems.

Our problem lies solely in LEADERSHIP, or the glaring lack of it.

Every serious nation with intelligent leaders has been doing this for decades.

Should you be telling us this madam or to Buhari and his economic team that only knows how to borrow.

subsidywise18:


We aint earning enough in the first place.

Corruption eats the 'little' we earn.

Good. That takes us back to d question: the one that they are stealing, is it little?

PDP REALLY DESTROYED THIS COUNTRY

Atkeast Nigerians are seeing that baba buhari is really trying

We the youths stand with our darling president



North2023


Anyways I sell cows