"Borrow Pose": Nigeria's Debt Situation and Its Path to Economic Resilience
Nigeria is Africa's largest economy and most populous country. It is also one of the most indebted countries in the world. In recent years, the country has faced a significant challenge in managing its debt situation. Nigeria's debt has grown over the years, driven by both external and domestic factors. External factors include fluctuations in global oil prices, which have a direct impact on its revenue generation due to its heavy reliance on oil exports. Domestic factors include fiscal deficits, inefficient public spending, and inadequate revenue diversification. According to figures from the Nigeria Debt Management Office ( DMO ), Nigeria's public debt stock stood at N87.36 trillion ($113.4 billion) as of June 30, 2023. This represents about 33% of the country's gross domestic product (GDP). While this debt-to-GDP ratio is relatively low compared to some other countries, it is still a significant burden for Nigeria, given its low level of income. In this article, we...