We wish to inform the public that Debt-to-GDP ratio as of 31 December 2020 was 21.61%, which is below Nigeria’s limit of 40% and IMF’s threshold of 55%. The FG’s economic initiatives are expected to ultimately boost revenues and reduce debt service-to-revenue ratio in due course.
FGN’s actions eventually took us out of recession in the fourth quarter of 2020 at 0.11% GDP growth rate. This positive feat is further highlighted when compared to a significant number of economies, some even advanced, who are still going through a recessionary phase.
The FGN proved its commitment to ensuring our debt sustainability by reducing the level of New Borrowing. This was achieved as New Borrowing fell from N2.36trn in 2017 to N1.59trn in the 2020 pre-covid budget.
It was revealed in the statement that the various initiatives of Government to increase revenues such as the Strategic Revenue Growth Initiative and the Finance Act, 2020, should help shore up Government’s revenue and reduce the Debt Service to Revenue