The Nigerian Economic Summit Group has raised concerns over Nigeria’s rising debt burden, warning that the country faces persistent fiscal risks as the public debt-to-GDP ratio climbed to 40.6 per cent.
The warning was contained in the group’s latest economic review released on Monday, in Abuja, where the NESG noted that although the debt level remains below some international thresholds, the growing cost of servicing the debt continues to pose a major threat to economic stability.
According to the group, Nigeria’s increasing dependence on borrowing amid weak revenue generation could worsen pressure on public finances if urgent reforms are not implemented.
The NESG stated that, “Nigeria’s debt sustainability concerns remain elevated due to weak revenue performance and rising debt servicing obligations”.
They stressed that fiscal authorities must prioritise revenue expansion and prudent spending.
The group also urged the Federal Government to intensify efforts at boosting non-oil revenue, improving tax administration and encouraging private sector investment to reduce reliance on borrowing.
It further warned that persistent inflation, exchange rate volatility and low productivity growth could compound the nation’s economic challenges if not properly managed.
The NESG, noted that consistent implementation of fiscal and monetary policies would be critical to restoring investor confidence and achieving long term economic growth.
NESG warns of persistent debt risk as public debt-to-GDP hits 40.6%
