World Bank cautions Nigeria, others, warns against sovereign debt
The World Bank has warned Nigeria that Eurobonds and other private sector market or sovereign debt instruments can worsen its debt-to-gross domestic product (GDP) ratio.
Following the latest rounds of Eurobond issues since January 2017, the Debt Management Office said the country’s debt stock shot up to about N21.7 trillion.
Although the World Bank said the size of Nigeria’s debt relative to the size of its economy is moderate, it also said the interest payment on document debts against the share of government revenues at the current rate was not sustainable.
World bank said the Nigerian government needs to ensure it borrows responsibly and focus on prioritising expenditures on investments.