Nigeria’s debts portfolio remains sustainable – DMO

Dr. Abraham-Nwankwo

Dr. Nwankwo

28 August 2014, Sweetcrude, Lagos – Director General, Debt Management Office, DMO, Dr. Abraham Nwankwo has said the country’s current debts remained sustainable and tailored to reflect its challenges and aspirations as a country.

Nwankwo spoke in Abuja as he revealed that the nation’s current public debt portfolio made up of both domestic and international borrowings stood at about N10.5 trillion compared to about N10 trillion in December 2013.

Total domestic debts are about N8.9 trillion while external debts stand at about $9.38 billion.

He stated that Nigeria’s debt-to-GDP ratio remained low at 12.51 percent after the recent rebasing of the economy, adding that with this, Nigeria had more capacity to borrow.

But he maintained that the managers of the nation’s debt would apply caution in further borrowings in order not to run into debt overhang.

He said: “Our current debt/GDP ratio is about 12.51 per cent which is much lower than the 56 per cent total public-to-GDP for countries of Nigeria’s group.

“However, this is not an indication that Nigeria can afford to borrow without caution. In spite of the re-basing which means we have more capacity to borrow, we are not going to borrow without caution.

“In fact, we are going to be more cautious, especially because our tax-GDP ratio is low. Many economic agents do not pay their taxes.”

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