The Debt Management Office (DMO) says Nigeria is actively reducing debt service cost by accessing World Bank loans.
The office took this position while clarifying issues relating to the nation’s indebtedness to the multilateral organisation.
Nigerians have continued to express displeasure over the federal government’s incessant borrowings, especially with the country’s total public debt at N46.25 trillion, and a growing debt service cost.
In 2022, Nigeria’s debt service-to-revenue ratio was at 80.6 percent — a figure far above World Bank’s suggested 22.5 percent for low-income countries like Nigeria.
The country plans to cut its debt service-to-revenue ratio to 60 percent this year, which is still high, relative to World Bank’s stipulated percentage.
