Debt servicing, greatest risk to Nigeria’s economy – Adesina

    5328B860 56C3 4158 A1BD A0091FFE6404
    5328B860 56C3 4158 A1BD A0091FFE6404

    By Admin

    The African Development Bank has projected a growth rate of 1.5 per cent for Nigeria in 2021, and a 2.9 per cent growth in 2022.

    The President, AfDB, Dr Akinwumi Adesina, disclosed this while delivering a speech at the first national tax dialogue on Thursday.

    He also said that debt service payments posed the greatest risk to Nigeria, given shrinking oil revenues.

    “We project that Nigeria’s economy is poised to recover to growth of 1.5 per cent in 2021 and 2.9 per cent in 2022, according to the African Development Bank’s soon to be released African Economic Outlook,” he said.

    He noted that the economy shrunk by three per cent in 2020 on account of falling oil prices and effects of the lockdowns on economic activity.

    The pandemic had impacted on budgetary balances and increased debt burdens, he said.

    He said that Nigeria’s debt-to-GDP ratio would push debt service payments beyond more than 60 per cent of federally collected revenues.

    “With shrinkage in oil revenues, debt service payments pose the greatest risk to Nigeria,” he said.

    Adesina said that AfDB estimated that Africa faced an additional financing need of $125-154bn by the end of 2020 to respond to the COVID-19 crisis.

    Source: Punch

    Accurate News Nigeria chat

    How chef stole massively from me- Wakanow CEO

    Previous article

    Things you need to know about boarding new Lagos-Ibadan train

    Next article

    You may also like


    Leave a reply

    Your email address will not be published. Required fields are marked *

    More in Economy