Nigeria to Spend 92% of 2022 Revenue on Debt Servicing- IMF

The International Monetary Fund (IMF) has said the Federal Government could spend as much as 92.6 per cent of its revenue on debt servicing this year. This is contained in its 2021 Article IV, which was released yesterday.

It also estimated last year’s debt servicing-to-revenue ratio at 85.5 per cent. The IMF 2020 debt-serving-to-revenue-ratio projection is higher than the 90 per cent forecast given by Agusto & Co.

As of the end of September 2021, the debt-servicing-to-revenue ratio stood at 76 per cent, implying that 76 kobo out of every N1 earned by the government was spent on payment of interest on debts.

IMF’s latest statement estimates the debt-servicing-to-consolidated revenue (total revenues of the government and its agencies) for 2021 and 2022 at 29 and 32.8 per cent respectively.