NAIJA NEWS
The International Monetary Fund (IMF) has, amid reports that Nigeria may spend 100% of its revenue on debt servicing by 2026, acknowledged that there was an improvement in the share of the government’s revenue last year.
In its latest publication, IMF noted that the revenue spent on debt servicing in 2022 was 96.3 per cent, and fortunately, in 2023, the government projected to spend 82 per cent.
According to the IMF, external debt (including that of the private sector) will rise to $121.6bn, with external reserves climbing to $37.5bn.
Naija News reports that the data was contained in the international organization’s projections table titled ‘IMF Executive Board Concludes 2022 Article IV Consultation with Nigeria summary.’
It added that interest payment was 86.1 per cent and 87.8 per cent of the Federal Government’s revenue in 2020 and 2021, respectively. The Washington-based lender further stated that Nigeria was at a near-term downside risk of high debt-servicing costs.
It said, “Directors welcomed the broadening of Nigeria’s economic recovery but noted that the opportunity to reap the benefits from higher global oil prices was missed.
“They underscored near-term downside risks arising from elevated inflation, high debt-servicing costs, external sector pressures, and oil sector volatility.
“Looking ahead, Directors recommended decisive fiscal and monetary tightening to secure macroeconomic stability, combined with structural reforms to improve governance, strengthen the agricultural sector, and boost inclusive sustainable growth.”
The publication also revealed that the Federal Government’s retained revenue was N6.5tn from January to November 2022, of which N5.24tn (80.62 per cent) was used for debt servicing.
In 2022, the IMF’s Resident Representative for…
