The World Bank recently reported a concerning figure: Nigeria’s debt interest-to-revenue ratio had reached 124%. This alarming statistic has sparked concerns about the country’s debt sustainability. However, the Nigeria’s Finance Ministry has disputed this claim, stating that the figures used by the World Bank were inaccurate.
According to a report by Sahara Reporters, the Finance Ministry claimed that the World Bank’s calculation of revenue was flawed, leading to an inflated debt-to-revenue ratio. The ministry did not specify the exact nature of the error.
Premium Times Nigeria also reported that the Finance Ministry disputed the claim, stating that it was based on outdated data. The ministry did not provide details on when the World Bank’s figures were produced.
It’s important to note that the Nigerian government has been grappling with high debt levels in recent years. As of 2021, Nigeria’s total public debt stood at over $88 billion, according to the Debt Management Office.
The dispute over the debt-to-revenue ratio highlights the importance of accurate data in understanding Nigeria’s economic health. The World Bank and the Nigerian government should work together to clarify the figures and address any concerns about the country’s debt sustainability.
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