Contrary to widespread assumptions, Nigeria has emerged with a surprising accolade in the realm of fiscal management as the International Monetary Fund (IMF) listed the country with the second-lowest debt-to-GDP ratio in Africa.
This revelation shows Nigeria’s economic stability and prudent financial decisions amid a complex global economic landscape.
As of recent data, Tanzania holds the top position with a debt-to-GDP ratio of 41.8%, a testament to its disciplined approach to debt management.
However, Nigeria closely follows suit, securing the second spot with a ratio of 41.3%. This significant achievement showcases Nigeria’s pivotal role within Africa’s economic sphere, despite external debts reaching $41.59 billion or approximately N31.98 trillion by December 2023.
The relatively modest debt levels in Nigeria can be attributed to several factors, including the diversification of its economic sectors and efficient debt management practices.
According to the Debt Management Office (DMO) Nigeria’s total debt hovers around N97.34 trillion.
Through meticulous oversight and strategic planning, Nigeria has navigated its economic landscape with resilience, thereby fostering investor confidence and maintaining a favourable debt position.
These achievements are particularly noteworthy given Nigeria’s substantial contribution to Africa’s economic landscape.
In comparison to other African nations grappling with higher debt burdens, Nigeria’s robust debt standing places it in a favourable position.
This distinction not only enhances Nigeria’s appeal to investors but also augurs well for potential financial assistance from both global and local creditors, bolstering the nation’s economic stability.
As Nigeria continues to chart its economic trajectory, its prudent fiscal management serves as a beacon of hope and a testament to the country’s resilience amid economic challenges.
With a strategic focus on sustaining this momentum, Nigeria is poised to reinforce its position as a key player in Africa’s economic narrative, setting a precedent for prudent financial stewardship across the continent.