The International Monetary Fund (IMF) says Nigeria’s debt burden, or net debt percentage of GDP, which rose to 50.7% in October 2024 from 46.1% in 2023, is projected to decline to 49.6% in 2025.
This indicates increasing borrowing relative to the country’s economic output.
The IMF’s Fiscal Monitor Report also highlights that general government expenditure as a percentage of GDP rose to 18.1% in 2024, while revenue increased to 13.5%.
However, the primary balance percentage of GDP remains unchanged at 0.9% but is expected to fall next year.
The IMF report adds, “Government debt projections are based on a pre-debt restructuring scenario,” referencing Ghana’s ongoing debt restructuring process.
Additionally, it notes that Nigeria’s debt includes overdrafts from the Central Bank of Nigeria (CBN) and liabilities from the Asset Management Corporation of Nigeria (AMCON).
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