Nigeria’s Debt-GDP Ratio Now Stands At 20.77% – DMO

[Shola Sholaz]

The Debt Management Office (DMO) says the nation's total debt to Gross Domestic Products (GDP) ratio now stands at 20.77 per cent against the 21.50 per cent in December 2011.
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Its Director- General, Dr Abraham Nwankwo, disclosed this in Enugu on Friday at an international media briefing and interaction on "Advances in, and Status of Public Management".
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He also said that the debt to GDP ratio should not exceed 20-25 per cent threshold  and there was government's commitment  to ensure that it did not rise beyond 30 per cent. Nwankwo said that the threshold set for countries in the rank of Nigeria was 40 per cent.
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The DMO boss said that in spite of that the 40 per cent threshold, the nation had decided to remain conservative by ensuring that it would not exceed 25 per cent by 2015. He, however, said that there was the possibility that the country's debt to GDP could reach 30 per cent in the future, adding that borrowing  was part of modern economy.