There are indications that the country’s Debt Servicing-to-Revenue Ratio, DSRR, may worsen in 2019 following the plan to sustain borrowing in the new fiscal year.
With Nigeria’s overall budget deficit proposal of N1.859 trillion in 2019 fiscal year, the federal government has disclosed that it would finance the short fall in revenue mainly by domestic and foreign borrowing, which is put at a total of N1.649 trillion.
This will take the country’s total debt to N24 trillion. At present N22.4 trillion total debt, the DSRR is put at about 66 percent. The additional borrowing is expected to push the ratio beyond 70 percent as the government struggles to improve domestic revenue from taxes and remittances from government enterprises.
Vanguard, December 21, 2018