Nigeria’s debt-to-GDP ratio modest amid subnational revenue growth – Presidency

The Presidency on Sunday asserted that Nigeria’s debt-to-GDP ratio remains relatively modest at barely 40% when compared with numerous peer economies and advanced nations. Highlighting comparisons with South Africa at 85%, Egypt at 80%, Ghana at 60%, Kenya at 75%, the United States at 130%, the United Kingdom at 110%, and China at an unofficial 300%, the administration emphasized a significant reduction in the debt service-to-revenue ratio, which fell from nearly 100% in December 2022 to less than 60%.

Special Adviser to the President on Information and Strategy Bayo Onanuga issued a statement titled “Facts, Not Fear: A Point By Point Response To Atiku Abubakar On Nigeria’s Reform Journey”. He explained that this notable achievement demonstrates improved revenue efficiency coupled with conservative and astute debt management. Nevertheless, the Presidency posed a fundamental question regarding whether borrowing effectively funds investments that expand productive capacity and future revenues rather than merely postponing difficult choices.

Economic evolution and growth metrics

Describing economic reforms as ongoing processes rather than isolated events, the Presidency noted that judging a programme solely by its initial, painful phase resembles judging chemotherapy entirely by its side effects while ignoring remission. Following the foreign exchange-rate reset, Nigeria’s dollar-denominated GDP initially contracted to approximately $253 billion. Data from statistical bodies and multilateral agencies such…