Nigeria may spend as much as 92.6 percent of revenue to service debt in 2022 due to weakening naira rate against the dollar, the International Monetary Fund has predicted.

According to data from the Debt Management Office (DMO), as of September 30, 2021, the nation’s external debt stood at $92.626 billion or N38.0 trillin for total public debt.

In order to sustain these debts, the Federal Government spends trillions of naira yearly on debt servicing — an amount required to cover the repayment of interest and principal on a debt(s) over a period of time.

In the past five years, beginning from 2017, the President Buhari administration has spent a total of N15.375 trillion on debt servicing, excluding N296bn and N110bn allocated for sinking funds in 2019 and 2020.

In its 2021 Article IV, IMF also expects the country’s revenues and grants in the year to cap at seven per cent of total output.

Last year’s rate was estimated at 7.4 per cent, which is much higher than the 6.3 per cent achieved in 2020.

Part of the report reads: “economy is recovering from a historic downturn benefiting from government policy support, rising oil prices and international financial assistance.”

The IMF also stated that insecurity and a lack of COVID-19 vaccination were significant obstacles impeding the country’s economic progress, emphasizing that “worsening violence and instability might also undermine the recovery.”

As at the end of September, 2021, debt-servicing-to-revenue ratio stood at 76 per cent, implying that 76 kobo out of every N1 earned by the government was spent on payment of interest on debts.

The IMF’s latest statement estimates the debt-servicing-to-consolidated revenue (total revenues of the government and its agencies) for 2021 and 2022 at 29 and 32.8 per cent respectively.

https://www.blueprint.ng/nigeria-to-spend-over-90-of-revenue-on-debt-servicing-in-2022-imf/

NwaNimo1:
Nigeria may spend as much as 92.6 percent of revenue to service debt in 2022 due to weakening naira rate against the dollar, the International Monetary Fund has predicted.

According to data from the Debt Management Office (DMO), as of September 30, 2021, the nation’s external debt stood at $92.626 billion or N38.0 trillin for total public debt.

In order to sustain these debts, the Federal Government spends trillions of naira yearly on debt servicing — an amount required to cover the repayment of interest and principal on a debt(s) over a period of time.

In the past five years, beginning from 2017, the President Buhari administration has spent a total of N15.375 trillion on debt servicing, excluding N296bn and N110bn allocated for sinking funds in 2019 and 2020.

In its 2021 Article IV, IMF also expects the country’s revenues and grants in the year to cap at seven per cent of total output.

Last year’s rate was estimated at 7.4 per cent, which is much higher than the 6.3 per cent achieved in 2020.

Part of the report reads: “economy is recovering from a historic downturn benefiting from government policy support, rising oil prices and international financial assistance.”

The IMF also stated that insecurity and a lack of COVID-19 vaccination were significant obstacles impeding the country’s economic progress, emphasizing that “worsening violence and instability might also undermine the recovery.”

As at the end of September, 2021, debt-servicing-to-revenue ratio stood at 76 per cent, implying that 76 kobo out of every N1 earned by the government was spent on payment of interest on debts.

The IMF’s latest statement estimates the debt-servicing-to-consolidated revenue (total revenues of the government and its agencies) for 2021 and 2022 at 29 and 32.8 per cent respectively.

https://www.blueprint.ng/nigeria-to-spend-over-90-of-revenue-on-debt-servicing-in-2022-imf/

There was a country....

The illeterate Tinubu that controls most educated but local Yoruba muslims in the SW will correct it

They will borrow to pay debt soon. The APC government has finished the black race

IMF, we are not taking any loans again.

No be by force now

....whilst at the same time looking for fresh loans.

[img]https://media1./images/f6aa5871607b1c8f9f05b99b53dab74c/tenor.gif?itemid=18210872[/img]

This is the western template that they use to manipulate weak nations:

STAGE 1) Use the noise about democracy to foist a willing crony as the president of any vulnerable country...

STAGE 2) Get the bemused president who is still eager to pay back the western supporters that made him president to borrow endlessly from different western financial institutions, including the world Bank and The IMF.

STAGE 3) Make sure they have borrowed themselves into a pit that they can't come out from and then basically be collecting their yearly earnings through bogus interests from the borrowed sum since the main amount involved can't be piad off easily..

That's the way countries are turned into slave colonies by western powers...
So when next you hear American and British leaders making press statements about democracy in Nigeria, put your thinking cap on. They're not in it for your good. They're in it for their good at your expense..

As it stands now, Nigerias total oil earnings are basically going directly back into western coffers..

This is quite unfortunate.

Nigeria is running on debt and loans.

Buhari has completely destroyed Nigeria, they should never make this type of mistake ever again by electing the monster with rotten yellow teeth.