Nigeria’s Debt To GDP Ratio Is 20 per cent And One Of The Lowest In Sub-Saharan Africa – Adeosun
The Minister of Finance, Mrs. Kemi Adeosun, has said that the International Monetary Fund, (IMF), is not in anyway worried about Nigeria’s debt. She made this known while speaking on Thursday.
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According to her, the country had enough finances and it’s capable of repaying its debt which is estimated at N21.7tn, adding that the government was not worried about the country’s high level of debt profile.
Adeosun reiterated that compared to other countries, Nigeria’s Gross Product ratio was still low. She stated that at 20 per cent, the country’s debt to GDP ratio is one of the lowest compared to Ghana’s 68 percent, Ethiopia’s 50 percent, and China whose debt to GDP is at about 250 percent.
She said, “I have said this before and I am saying it again, there is no cause for worry. Nigeria’s debt to GDP ratio is 20 per cent and it is one of the lowest in sub-Saharan Africa.”
“We are pursuing a very measured strategy. We are running a budget deficit; the size of that deficit is coming down now.”
“Nigeria is not among the countries that the IMF is worried about. We do have a challenge on debt service to revenue. That is because the interest cost is quite high and that is a function of two things.”
“One is the fact that most of the debts were short-term; so, we are paying interests and compounding it. We have been refinancing treasury bills and issuing bonds.”
“We have been refinancing treasury bills in the domestic market and replacing them with longer term debts in the international market. And this is reducing our cost of borrowing.”