The Debt Management Office (DMO) says Nigeria is not under any debt stress, as its debt is still sustainable.
Monday Usaide, representative of the DMO Director-General, who disclosed this in a statement over the weekend, said the country is yet to reach the threshold set by the World Bank and the International Monetary Fund ((IMF).
He said the DMO has set maximum debt limit at 40 percent of the nation’s Gross Domestic Product for external debt, but the country is at eight percent, while the Economic Community of West African States (ECOWAS) has set 70 percent and Nigeria is currently at 21.
He also said Nigeria’s debt to GDP ratio as at 2019 stood at 19 per cent and this is relatively small, looking at the size of the Country’s large economy compared to other smaller countries.
“Looking at all the indicators, Nigeria is not under any debt distress,” he said.
“We have said we will always ensure responsible borrowing, even at the 40 percent threshold, Nigeria is still at 21 per cent, which is relatively low,” he added.
