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Nigeria’s debt servicing exceeding 100% – KPMG

A professional services firm, KPMG has warned that Nigeria’s debt service to revenue ratio may exceed 100 percent in 2023.

This is even as the country’s total debt rises to N77.8 trillion from N46.3 trillion at the end of 2022.

The data is contained in KPMG’s macroeconomic snapshot released on Thursday.

The new borrowings are coming from the recently Senate-approved securitization of N22.7 trillion Ways and Means advances and the N8.8 trillion expected new borrowings in the 2023 states and federal budgets

According to the firm, the incoming government may be compelled to borrow more to run its administration and stimulate growth in physical and social capital.

KPMG advised the government to establish defined guidelines and frameworks for borrowing.

Meanwhile, the World Bank recommends a 22.5 percent debt service-to-revenue ratio for low-income countries like Nigeria.

Writing by Julian Osamoto