The federal government, yesterday, released the nation’s Debt Sustainability Analysis, DSA, for 2021, with a recommendation to strengthen and continue the implementation of the Strategic Revenue Growth Initiatives to shore up government revenues, in order to reduce financing pressures, and expand the fiscal space.
The DSA recommended an effective implementation of the Petroleum Industry Act, PIA, 2021 which is expected to attract investment in the oil and gas sector.
It also recommended a sustained implementation of the National Development Plan, NDP, 2021-2025 to maintain the recovery in the economy, while rationalizing expenditure by focusing on priority spending on growth-enhancing sector of the economy.
It identified real Gross Domestic Product, GDP, growth, real interest rate and exchange rate as key challenges that could push up total public debt up this year and in 2023.
The DSA posted on the DMO website indicated that Nigeria adopted Market Access Country-Debt Sustainability Analysis framework to conduct its debt sustainability exercise in 2021.