Nigeria’s Debt-to-GDP Ratio to Drop to 49.6percent in 2025

The IMF Fiscal Monitor Report 2024 released on Thursday has highlighted projections that Nigeria’s debt-to-GDP ratio, currently at 50.7 percent, is expected to drop to 49.6 percent by 2025.

It noted that the country’s public debt includes overdrafts from the Central Bank of Nigeria and liabilities from the Asset Management Corporation of Nigeria.

“The overdrafts and government deposits at the Central Bank of Nigeria almost cancel each other out, and the Asset Management Corporation of Nigeria debt is roughly halved,” the report noted.

Further projections show the debt-to-GDP ratio declining to 48.5 percent in 2026 and 48.2 percent in 2027, with a slight rise to 48.8 per cent in 2028 and 49.1 per cent in 2029.

The IMF emphasised that alongside revenue growth, the government must implement targeted social safety nets to cushion the effects of inflation and environmental challenges on vulnerable groups.

Punch/Hauwa Abu