IMF Warns Nigeria - "Your Debt Profile Is Rising" Aimed 5.5 Billion Dollar Foreign Loan


The IMF, International Monetary Fund has warned the Federal Government of Nigeria about its rising debt profile, just as President Buhari seeks approval from NASS to borrow $5.5 billion to fund the budget. The financial institution issued the warning on Wednesday, October 11th, 2017.

Mr. Tobias Adrian, a director at the financial institution, stated that if Nigeria does not put the resources gotten from increased borrowing to good use, it would pose serious challenges for the nation

Catherine Pattillo, an assistant director at the IMF admitted that Nigeria has undertaken lots of positive reforms; but stated that the government must do more especially in terms of mobilizing non-oil revenue.

In her words:

“The concern in a number of oil exporters is that unless there is action now, debt which has been rising is a concern because of the interest payments.

“So, if you have continuing rise in debt, the interest payments would consume a large part of any revenue that you collect and you won’t be able to use that revenue for the objectives of the economic growth and recovery programme like increasing growth and employment.

“So for insuring that you have the ability to use those revenues for enhancing expenditure, there is a need to make sure that interest to revenue is kept at reasonable level.”

According to data from the Debt Management Office, Nigeria’s public debt as at June 2017 stood at $64.19 billion (N19.63 trillion).

Under the current government, Nigeria’s foreign debt profile rose from $10.718 billion in 2015, to $11.406 billion in 2016 and $15.047 billion in 2017
IMF Warns Nigeria - "Your Debt Profile Is Rising" Aimed 5.5 Billion Dollar Foreign Loan IMF Warns Nigeria - "Your Debt Profile Is Rising" Aimed 5.5 Billion Dollar Foreign Loan Reviewed by Exlink Lodge on Thursday, October 12, 2017 Rating: 5

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