The Debt Management Office (DMO) said Nigeria’s debt service to revenue ratio in 2022 reached 100 per cent.
DMO’s Director General, Patience Oniha, disclosed this recently at a technical round-table on an economic blueprint for President Tinubu’s administration organized by ActionAid Nigeria.
According to her, the push for policies and actions that will galvanize revenue generation and generally stimulate economic growth must be emphasised.
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She said: “As many of you know, the debt stock has grown, but it is essential to understand the reasons behind this growth. Subsidies are budget expenditure items; thus they invariably contribute to budget deficits.
“On the other hand, the Naira exchange rates used for the budgets are the official rates, which we all know are much lower than the open market rates, the effect of which is lower revenue.”
In late June, DMO said the country’s total debt stock stood at N49.85 trillion excluding the N22.719 trillion securitized Ways and Means loans from the Central Bank of Nigeria (CBN).