IMF Predicts Bleak Economic Future For Nigeria Over Rising Debts

The international Monentary Fund, IMF has predicted that revenues generated in coming years by many African nations including Nigeria may be used to settle debt.

The agency painted the bleak outlook in its recent Sub-Saharan Africa Regional Economic Outlook released on Monday 30, May in Abuja.

Ari Aiden the agency resident representative revealed in his presentation that the country is under serious financial stress.

He explained that many African countries, including Nigeria are gradually moving into critical debt servicing problems, maintaining that 80 per cent of the federal government’s revenue is currently used in servicing debt.

He said, “It is a reflection of low revenue. It is an existential issue for Nigeria. It is essential for macro-economic stability. It is important for the provision for social service.”

He added that with N500 billion monthly fuel subsidy payouts, the country might end up with a record N6 trillion subsidy at by year-end

Speaking on the economic outlook for the continent, the IMF official identified key priority areas as reducing debt vulnerabilities, balancing inflation and growth; and managing foreign exchange rate pressures.

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