• Privacy Policy
  • Terms
  • About us
  • Contact Us
Friday, June 2, 2023
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

Nigeria’s debt sustainable, says DMO

Debt

The Matters Press by The Matters Press
December 5, 2022
Reading Time: 2 mins read
0
22 African nations in debt crisis

The Debt Management Office (DMO) says Nigeria’s debt remains sustainable, in spite of the country’s seeming huge debt stock.

RELATED POSTS

Tanzania to end frequent power blackouts in two years

ECA calls for inclusive tax system to secure SDGs

PANDEF backs fuel subsidy removal

The Director-General of DMO, Mrs Patience Oniha, said on Monday in Abuja said that there was urgent need to boost the country’s revenue to further ameliorate the debt burden.

She suggested an efficient tax administration that would ensure greater compliance to remittances, and devoid of all forms of evasions in the system.

According to her, most countries place more emphasis on taxation as a principal source of funding for the government.

She advised that new borrowings should be tied to projects that would generate commensurate revenues to service loans used to finance them.

She also said that physical assets such as idle or under-utilised properties could be redeveloped for commercialisation to generate revenue.

ALSO READ  Customs Service bemoans inadequate warehouses

According to Oniha, the current revenue problem is compounded by leakages like oil theft and petrol subsidy.

“These have significantly reduced the revenue from crude oil sales that used to account for the bulk of government revenue,” she said.

She said that the outlooks of both the local and international markets were becoming tighter with rising interest rate.

She called for moderation in new borrowings and accelerated revenue growth to shore up non-oil revenue.

She, however, said that the country’s total public debt-to-Gross Domestic Product (GDP) ratio was still within reasonable limits.

“At 23.06 per cent, the debt-to-GDP ratio is still within Nigeria’s self-imposed limit of 40 per cent.

“It is also within the World Bank/International Monetary Fund (IMF) recommended limit of 55 per cent for countries within Nigeria’s peer group and 70 per cent for ECOWAS countries,” she said.

ALSO READ  Experts proffer ways to check rising inflation

She said that debt service-to-revenue was high, adding that urgent steps needed to be taken to boost revenue and further enhance public debt sustainability.

“Nigeria’s public debt stock has grown consistently over the past decades and even faster in recent years, and debt service has continued to grow.

“The country’s low revenue base compounded by dependence on crude oil receipts resulted in budget deficits over the past decades.

“Efforts at increasing non-oil revenue are, however, yielding positive results,” she said.

According to her, with a low debt-to-GDP ratio, the debt service-to-revenue ratio would have been low if revenue were strong.

She said that Nigeria was deploying debt management tools of the World Bank and IMF to ensure debt sustainability.

“These tools include an annual Debt Sustainability Analysis (DSA) and a Medium Term Debt Management Strategy (MTDS) every four years,” she said.

ALSO READ  FIRS celebrates management team members for global recognition

Oniha listed other initiatives to ensure debt sustainability as the Presidential Infrastructure Development Fund (PIDF), Infrastructure for Tax Credit, Infrastructure Corporation of Nigeria Limited (InfraCorp) and Off Balance Sheet Financing.

“The PIDF is managed by the Nigeria Sovereign Investment Authority (NSIA). The fund is to be invested in critical road and power projects across the country.

“The Infrastructure for Tax Credit initiative encourages companies to commit their resources to the construction of new roads or rehabilitating old ones with the assurance that such expended resources would be recouped from company tax.

“InfraCorp is a Public Private Partnership promoted by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC) and NSIA, to catalyse and accelerate investment in Nigeria’s Infrastructure sector.

“InfraCorp has a seed funding of One trillion Naira as equity from the promoters,” she said.

Tags: Debt
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Blackout hits Nigeria as grid collapses again
Economy/Technology

Tanzania to end frequent power blackouts in two years

June 2, 2023
FIRS deploys tech platform for tax collection
Economy/Technology

ECA calls for inclusive tax system to secure SDGs

June 2, 2023
Nigeria has not taken decision yet on fuel subsidy
Economy/Technology

PANDEF backs fuel subsidy removal

June 2, 2023
Council seeks incentives to boost indigenous ship operations
Economy/Technology

28 cargo ships expected in Lagos ports

June 2, 2023
May & Baker approves N517.57m dividends for 2022
Economy/Technology

May & Baker approves N517.57m dividends for 2022

June 2, 2023
Nigeria’s N17.1trn budget to gets presidential accent on Friday
Economy/Technology

Fuel subsidy not in 2023 budget – NNPC

June 2, 2023
Next Post
Nigeria in deal with firm to facilitate funding for houses

We’ll restore investors’ confidence in real estate – LASG

Council seeks incentives to boost indigenous ship operations

NPA expects 17 ships conveying products

Leave a Reply Cancel reply

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

Recommended Stories

Nigeria emerges Africa biggest energy sector

How to tame global energy crisis — expert

October 3, 2022
CBN’s position on ‘composed’ banknotes

CBN’s position on ‘composed’ banknotes

April 3, 2022
PENCOM launches radio programme

PenCom warns public about activities of ASSOPEP

April 9, 2023

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • Tanzania to end frequent power blackouts in two years
  • ECA calls for inclusive tax system to secure SDGs
  • PANDEF backs fuel subsidy removal

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2022 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2022 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?