Nigeria’s revenue to debt ratio appears to be one of the worst in the world according to Debt Management Office (DMO) data.
As at the end of 2020, Nigeria’s revenue ratio stands at 10.39% out of its total public debt of approximately 32.9 trillion naira.
This data reveals the cost of servicing debts in relation to the revenue generated by the federal government. Analysts have further projected that the cost of servicing debts will become even higher than the actual revenue generated in the near future due to accelerating inflation, a tighter external debt market, and a potential drop in government revenue.
Dataphyte’s Advisory Note “Nigeria’s Post Oil Economy: Going the Housing Consumer Credit Path” provides more insight on this subject.