The African Development Bank (AfDB) on Monday expressed worries over the country’s rising debt service-to-revenue ratio, currently put at 73 percent.
President of the bank, Dr. Akinwumi Adesina said, although Nigeria’s debt to the GDP remains moderate at 35 per cent, the government must decisively tackle its debt challenges to grow the economy.
Akinwumi spoke at the opening of a two-day Mid-Term Ministerial Performance Review Retreat at the Presidential Villa, Abuja.
“Nigeria must decisively tackle its debt challenges. The debt service to revenue ratio of Nigeria is high at 73%,” Akinwumi said.
“Things will improve as oil prices recover, but the situation has revealed the vulnerability of Nigeria’s economy. To have economic resurgence, we need to fix the structure of the economy and address some fundamentals.”
Akinwunmi advised that for Nigeria to sustain its growth and economic resurgence, there is a need to remove all structural bottlenecks that limit productivity and revenue-earning potential of the huge non-oil sectors.