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Nairaland Forum / Nairaland / General / Politics / Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time (487 Views)
Nigeria’s revenue-to-GDP ratio lowest in the World – World Bank / Nigeria’s Revenue To GDP Ratio Hits 8%, Targets 15% 2023 / Ugwuanyi Has Exceeded UN Tax Revenue To GDP Benchmark, Says Joint Tax Board (2) (3) (4)
Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 10:18am On Jun 30 |
Nigeria’s debt-to-GDP ratio crossed 50% for the first time ever last week after the Debt Management Office published the country’s latest public debt figures. According to the DMO, Nigeria now has a public debt portfolio of N121 trillion, consisting of domestic debt of N65.6 trillion and a foreign debt portfolio of $42.1 billion (which converts to N56 trillion when converted to Naira). As of December 2023, Nigeria’s total gross domestic product (GDP) was N229.9 trillion in nominal terms, though it grew by only 2.74% in real terms. This suggests that the country’s debt-to-GDP ratio is now above 50% for the first time. Nigeria’s latest Debt to GDP In the first quarter of 2024, Nigeria recorded a nominal GDP of N58.5 trillion, up from N51.2 trillion in the corresponding period in 2023. However, in the second and third quarters of 2023, the nominal GDP figures were N52.1 trillion and N60.6 trillion, respectively. The fourth quarter GDP rose to N65.9 trillion, making the trailing four-quarters GDP total N237.5 trillion. Based on the 2023 GDP figure of N229.9 trillion, Nigeria’s debt-to-GDP ratio is 52.9%, marking the first time the country has reached such a high debt-to-GDP figure. Using the trailing four-quarter GDP figure of N237.5 trillion, the country’s debt-to-GDP ratio also stands at 51.2% Why this matters: Nigeria has often viewed its ‘low’ debt-to-GDP ratio as a sign of the country’s economic resilience, suggesting there was more room to expand its borrowing capacity. For example, as of 2023, Ghana had a debt-to-GDP ratio of about 84.9%, while South Africa’s ratio stood at 72.2%. Kenya and Egypt had ratios of 70.1% and 95.8%, respectively. While these countries have significantly higher debt-to-GDP ratios compared to Nigeria, the challenge has always been Nigeria’s ability to meet its debt service obligations due to its high debt service-to-revenue ratio. Now, with Nigeria’s debt-to-GDP ratio surpassing 50% and continuing to rise, the country has limited room to further expand its borrowing capacity while grappling with current economic challenges. Nigeria’s rising debt profile Nigeria’s debt profile has risen over the last 8 years as the country faced a string of fiscal challenges brought about by low crude oil proceeds amid rising budgetary expenditure. For example, under the Buhari administration, public debt rose from N12.6 trillion in 2015 to N97.3 trillion in 2023. Between December 2023 and March 2024, public debt in Naira terms have risen by as much as N24.3 trilion. However, the Debt Management Office (DMO) explained the increase noting that the N24.33 trillion increase in the total debt was a result of a combination of fresh borrowing and naira devaluation. The DMO further clarified that Nigeria’s fresh borrowing was N7.71 trillion in the first quarter of 2024. The fresh borrowing includes N2.81 trillion as part of the new domestic borrowing of N6.06 trillion provided in the 2024 Appropriation Act and N4.90 trillion as part of the securitization of the N7.3 trillion Ways and Means Advances approved by the National Assembly. Global ratings agency, Moody’s also stated that Nigeria’s interest spending on debt might consume up to 36% of the federal government’s revenue in 2024. According to the firm, the hawkish monetary policy stance of the CBN has pushed interest rates for local borrowing by the federal government from an average of 12.8% in 2023 to around 19% in the first five months of 2024. https://reubenabati.com.ng/featur/nigeria-s-debt-to-gdp-ratio-crosses-50-for-the-first-time |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by hegu: 10:26am On Jun 30 |
Still searching for what the previous administration did with trillions of loans 1 Like |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by RepoMan007: 10:27am On Jun 30 |
Very bad news. That means our net productivity is half ours and half theirs. Remove crude oil God put in the ground for free and realize how little our effort(private and sme) counts. 1 Like |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by RepoMan007: 10:30am On Jun 30 |
The DMO further clarified that Nigeria’s fresh borrowing was N7.71 trillion in the first quarter of 2024.All for salary and unproductive projects that guarantees looting margin. Salary to idlers and profit to looters. The business centre called Nigeria. |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by RepoMan007: 10:35am On Jun 30 |
For example, under the Buhari administration, public debt rose from N12.6 trillion in 2015 to N97.3 trillion in 2023. Between December 2023 and March 2024, public debt in Naira terms have risen by as much as N24.3 trilion.This should tell any zombie still playing omoluabi tribal politics that there is nuclear explosion(not ordinary fire) on the mountain. Removed subsidy but still borrowing like demons. Why must the books of the country be secretly managed? They are back to subsidising the whole west african petrol but too ashamed to admit it. |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by Nukilia: 10:48am On Jun 30 |
Peter Obi must be punished for these evil that he has brought on Nigeria. See how much debt he has caused Nigeria... #Sarcasm ![]() |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by hilertali: 11:12am On Jun 30 |
The government is borrowing heavily to finance different budgets. We can't keep repeating mistakes of Buhari and expect different results. |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by Melagros(m): 11:18am On Jun 30 |
COMRADES, tinubu and apc are out to destroy Nigeria |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by mrvitalis(m): 11:59am On Jun 30 |
hegu:Hope u can read... Tinubu has borrowed over 12 billion dollars in one year what has he done with it You are talking about past when the present is worse 2 Likes 3 Shares |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by mrvitalis(m): 12:03pm On Jun 30 |
I raised the alarm that his would happen... I shouted at it they said I was saying rubbish Debt servicing to revenue now should certainly be over 100% or at best would be very soon Yet APC thinks it's time to build road, bridges and train ( sad most Nigerians think like this) To you who thinks it's not your business... The taxes you would soon pay eeh... Don't worry Time to liquidate all my asset and move out Ladies and gentlemen Nigeria as you know it is dead 1 dollar to 3500 here we come 1 Like 1 Share |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 4:29pm On Jun 30 |
Nlfpmod, we are seriously in debt. ![]() ![]() ![]() ![]() ![]() ![]() |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by IduNaOba: 4:54pm On Jun 30 |
I will continue where Buhari stopped. Una rig am enter He is keeping his campaign promise o 💯 % pass mark. Congratulations Nigeria |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by givedemwotowoto: 4:55pm On Jun 30 |
Baalablu does not believe in statistics so he won’t bother Could he have been one of the greatest conmen of all time? Someone who got an accounting degree without ever going to school? We need to find the lady that attended that those classes and wrote the exams at CSU. She should be president ![]() |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 9:41pm On Jun 30 |
givedemwotowoto: ![]() ![]() ![]() ![]() ![]() |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by Smithkafors(m): 9:58pm On Jun 30 |
What has the APC added to Nigerian economy. Nothing. |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 11:31pm On Jun 30 |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 8:51am On Jul 01 |
May God miraculously pay Nigeria debts. ![]() ![]() ![]() ![]() |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by BigkokoRep: 9:00am On Jul 01 |
An administration the current Ronus defended......what a shame! hegu: |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 11:03am On Jul 01 |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by iwaeda: 9:16pm On Jul 01 |
Ani je gbese. ![]() ![]() ![]() ![]() |
Re: Nigeria’s Debt To GDP Ratio Crosses 50% For The First Time by obi4eze(m): 9:27pm On Jul 01 |
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