N24.39tn debt: IMF worries over Nigeria’s repayment capacity

N24.39tn debt: IMF worries over Nigeria’s repayment capacity

The International Monetary Fund , on Tuesday , expressed worry over Nigeria’ s ability to repay its foreign debt which had continued to rise . Though it said conditions were favourable for the country to continue to borrow , the IMF equally expressed worry over the capacity to repay . The Financial Counsellor and Director


The International Monetary Fund , on Tuesday , expressed worry over Nigeria’ s ability to repay its foreign debt which had continued to rise .
Though it said conditions were favourable for the country to continue to borrow , the IMF equally expressed worry over the capacity to repay .
The Financial Counsellor and Director , Monetary and Capital Markets Department, IMF , Tobias Adrian , while presenting the Global Financial Stability Report at the ongoing joint annual spring meetings with the World Bank in Washington DC, said, “Nigeria has been borrowing in international markets but we worry . So , on the one hand , that is very good because it allows Nigeria to invest more ; but on the other hand , we do worry about rollover risks going forward .
“ At the moment , funding conditions in economies such as Nigeria and other sub- Saharan African countries are very favourable but that might change at some point . And there is a risk of rollovers and there is the risk of whether these needs for refinancing can be met in the future . ”
Recall that Nigeria’ s total debt profile as of December 31 , 2018, stood at N 24. 387 tn . The figure swelled by 12 . 25 per cent from N 21 . 725tn in 2017 to N 24. 39 tn in 2018.
The Debt Management Office said the debt rose by N 2. 66 tn from December 31 , 2017 to December 31 , 2018.
Statistics provided by the DMO showed that the country ’ s public debt rose from N 21 . 73 tn in 2017 to N 24. 39 tn within the one- year period .
According to the DMO , the year- on- year growth of public debt show 12 . 25 per cent within the one- year period .

However , in a swift reaction to the IMF statement , the Federal Government described the nation ’ s debt burden as sustainable . Speaking on Wednesday in Abuja , the Minister of Budget and National Planning , Senator Udoma Udo – Udoma , argued that it posed no harm to the economy of Nigeria.

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