The Nigerian government may spend nearly 100 per cent of its revenue on debt servicing by 2026, the International Monetary Fund , IMF, has warned.
The Bretton Wood institution raised concerns over Nigeria’s fiscal conditions, adding that the nation spends 89 per cent of its revenue on debt.
The IMF’s Resident Representative for Nigeria, Ari Aisen, made this known in Abuja while presenting the fund’s latest Sub-Saharan Africa Regional Economic Outlook report.
IMF also warned that with fuel subsidy payments averaging N500 billion monthly, total expenditure on subsidy could hit a record N6 trillion by the end of the year.
The IMF official lamented that as an oil exporter, Nigeria is unable to take advantage of the current global high oil prices to build reserves.
In the midst of the uncertainties, the World Bank Group urged Nigeria to rethink its fuel subsidy regime and multiple exchange rates policy.
Speaking on the economic outlook for the continent, the IMF official advised governments across the region to reduce debt vulnerabilities, balance inflation and growth, and manage foreign exchange rate pressures.