Nigeria’s indebtedness will climb to 24.1 per cent of its Gross Domestic Product by 2018, the International Monetary Fund has said.

The IMF, which stated this in its World Economic and Financial Surveys, also projected that by the end of 2017, the country’s current indebtedness would have reached 23.3 per cent of the GDP.

The country closed 2016 with a debt to GDP ratio of 18.6 per cent. By the end of 2015, Nigeria’s debt to GDP ratio stood at 12.1 per cent, according to the Bretton Wood institution.

Nigeria’s GDP for the year ended December 31, 2016 stood at N67.98tn, according to the National Bureau of Statistics.

Going by the projection of 24.1 per cent for 2018, it means that within three years, the nation’s debt to GDP ratio would have gone up by 100 per cent, from 12.1 per cent in 2015 to 24.1 per cent.

Although Nigeria’s debt to GDP ratio is considered among the lowest in Africa, some are worried about the spate of debt accumulation in recent years, while others are not happy with the quality and utilisation of debts by the nation.

The World Bank recently expressed concern over the debt payment to revenue ratio, saying that reduced revenue earnings might render the country’s debt unsustainable. A total of N1.84tn was provided for in the 2017 budget for debt servicing.

Senior Economist at the World Bank office in Nigeria, Yue Man Lee, said for the interest payment to be sustainable, the country either had to increase its revenues or work towards balancing the debt profile.

She said, “Nigeria’s debt to GDP ratio is relatively low. What is of concern is the ratio of interest payment to revenue. That is what is concerning. This reflects the fact that there has been a massive drop in revenues because of drop in oil revenues.

“There are two main strategies to reduce this debt burden. One is to increase the revenues. Here, in order not to be vulnerable to the volatility of the oil sector, the critical thing is to increase the non-oil revenues – the VAT, the income taxes and the excises outside of oil. This is something we have been discussing with the government about.”

Reduced earnings owing to the fall in prices in the international oil market have led to increased borrowing, with a projection of N2.35tn expected to be borrowed in the 2017 fiscal year. The 2016 budget projected a borrowing of N1.84tn for deficit financing.

Nigeria’s debt profile is dominated by local debts, which are characterised by high interest rates. Efforts are being made to secure more foreign loans and reduce the exposure of the Federal Government to the domestic debt market.

http://investorsking.com/nigerias-debt-to-climb-to-24-1-of-gdp-by-2018-imf/

With all the so called recovered money.

thesicilian:
With all the so called recovered money.

The money can't be used without the backing of the law and there's a bill to that effect but NASS have failed to pass it talk more of signing into law.

This is not good for a country seeking diversification of its economy.

Who go pay am?

Very soon this nation will be auctioned on Amazon or Jumia

Oni gbese zoogeria

Very soon it will climb to 100% of GDP. Nonsense

Amoto94:
The money can't be used without the backing of the law and there's a bill to that effect but NASS have failed to pass it talk more of signing into law.

Thank God, our eyes don dey open, NASS is the major problem we have in this nation... They only pass bill that Favour thier pocket

At least people can't now say Buhari didn't do anything

What kind of government is this?

And the Vice President just requested for an additional $1.2B!!

These people are not satisfied with impoverishing Nigerians today, they are working assiduously to impoverish Nigerians for a long time to come!!!!

Economy no go give me heart attack o

Caused by Useless govt of GEJ and PMB.

GEJ was recklessly borrowing even at the time of oil boom and nothing to show except some micro interventions like almajiri school blocks.

PMB came,dashed all hopes and took cluelessness to next level

GEJ and PMB have made OBJ a hero.

Lobatan

let it climb very well oooo...

meanwhile lala can you please provide us with ladder to ease the climbing process because I for see a long climbing process..

For your landscape and horticulture/ garden services...
kindly call us..

Thanks

APC, una well done

Where is onatisi ?

WHO IS NT ON DEBT

And the worst government in Nigeria's history keeps giving us fake news and false hope of having come out of recession. Thank God the National Bureau of Statistics has exposed their lies.

One only hopes these progrethieves and Association of Protected Criminals would not have shipwrecked this nation by 2019.

I've been around for a while and make bold to say that Buhari's APC is a curse and the worst plague that ever befell my fatherland.

May them and their local and international collaborators receive their due reward from God!

Childhood yabs few would remember:
1. “You mess, akpu fly gate amala trap am.”
It makes no sense, but it still used to pain.

2. “You mess, all the fishes in the
water say ‘are we safe?'
The ajepako was strong with this one.

3. “You mess, harmattan catch eba.”
HOW, ABEG?

4. “You shit here, shit here say mama which one
I go marry.”
Choi!

5. “You mess, Babangida repeat primary 1.”
Why did we drag Babangida into it?

6. "2 mosquitoes attack your village, nobody escape.”
I say this one is strong.

7. “The finest girl for your village, na
monkey dey toast am.”
Why did this even pain us?

8. “The strongest man for your village, na hot eba
kill am.”
This still makes no sense.

9. “The tallest man for your village sit down for until
Maggi him leg no reach ground.”
See lie abeg

10. “The richest man for your village na gere gere
him dey carry go work ”
Wetin concern me?

11. “With Your scatter scatter teeth like Devil
calculator.”
Kai! This one used to pain well a .

12. “You shit here , shit here , dey find they find
the L.C.M.”
This one was just extra razz.

13. “You bombastic element.”
Still don't know what this means, but it used
to pain.

14. “American dusting powder.”
Every primary school girl's favourite insult.

15. “Born by mistake.”
Ouch!

16. “Water and garri make eba on your wedding day.”
The most annoying answer to “what?”

17. “Tear tear, patch patch, omo baba shoemaker.”

18. "All your family members sit down for Akara oil no come out"

Abeg, how is this possible

Well done VMB

Why won't our debt increase

Sick president that travelled all the continent in the name of wooing investors yet nothing to show for it now he is sick

What have Nigerians benefited from this government since when they came into power

That's why I don't reply any foolish mad APC supporters because they are equivalent to a roaming mad man who doesn't know what is going on

Nigeria will soon be a Game over

cg

waiting for ignorant people to flood this thread.

The only issue I have with this debt is that it is not being expended on project that futures generations that will pay the debt will know.

After how many years in government? Enough of these tales by the moonlight about this present government working hard to annul for the incompetence of the previous one.
I mean are we all blind to see that this government is simply preying on our emotions while feeding us crap? Instead of improvements, everything seems to be hitting rock bottom. This government spearheaded by pmb isn't just working, it never did.
SEE YOU ALL IN 2019

God bless Biafra,the land of the rising sun.

IMF seems to know our country more than we do. They've bee on this interest thingy since last year but it doesn't look like our government is understanding what IMF has been saying.

Sunnycliff:
Very soon this nation will be auctioned on Amazon or Jumia

u no get joy ooo

obembet:


Thank God, our eyes don dey open, NASS is the major problem we have in this nation... They only pass bill that Favour thier pocket

What law ? If Buhari can detain Dasuki against what the law states then he has no problem using the money for anything meaningfu! If Buhari can sanction the Zaria massacre then he has no problem using the money as well. They only consider the law when it's for the good of the citizens. This same govt is backing Custom officer that's flouting the law.
The only reason they haven't used that money is either the money is not there or it's in there pocket already.

Buhari and his APC crew has rendered this country useless

Sunnycliff:
Very soon this nation will be auctioned on Amazon or Jumia

abeg let's us the Igbos red mud erosion ravage Ipob go first then you can auction this zoo for sale


When pharaoh refused to let the children of israel to go to their promised land you all saw what the Egyptians went through

Let's baifra go if not


Land of the raising sun here we come

Jesus! This country has been sold away as slaves to finicial institutions. Look at where the buhari apc lead government has tied the future of the Nigerian populace and they still intend to borrow more. We cannot survive with this government to 2019 not to talk more of 2023! A government that preached change yet cannot change it's source of income from oil dependency through diversification to other sources of God given resources to create wealth?
We need a referendum in this country because my children would not pay for the sins and costly mistakes of this God forsaken lugards experiment.