Nigeria's Debt Burden to Exceed N118tn in 3 Years Due to High Borrowing and Rising Debt Costs
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Nigeria's total public debt could exceed N118tn in the next 3 years due to high borrowing plans and rising debt servicing costs.
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The Federal Government plans to borrow N26.42tn between 2024-2026, with more focus on domestic borrowing.
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Debt servicing is projected to gulp N29.92tn over the next 3 years, exceeding capital expenditure by N8.41tn.
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As of June 2023, Nigeria's debt-to-GDP ratio was 41.15%, exceeding the 40% threshold.
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Experts advise the government to cut borrowing and improve revenue generation from oil production and tax collection.