Fiscal policy expert and Chairman of the Debt Management Roundtable (DMR), Mr Taiwo Oyedele, has hinted at the possibility of a debt crisis if Nigeria maintains its skyrocketing debt service cost to revenue.
Oyedele, in a recent chat with NESG Radio, the weekly syndicated podcast of the Nigerian Economic Summit Group (NESG), emphasised that the current debt to GDP ratio and fiscal benchmarks set by international monetary organisations were not the appropriate yardsticks by which to measure Nigeria’s solvency threshold.
He said: “The primary source of concern for Nigeria is not the debt to GDP ratio which is still within the international threshold. What the DMR is actually interrogating are whether those international thresholds are indeed appropriate for our West African countries. If you take Nigeria for example, our debt to GDP ratio is still under 35%, but our debt service cost to revenue is already 70% for…
Source: Guardian Newspaper