Nigeria's Rising Debt Service-to-Revenue Ratio: Insights from Economist Paul Alaje

Monday, 12 August 2024, 02:24

Economist Paul Alaje has warned that Nigeria's debt service-to-revenue ratio could escalate to a staggering 98% within the next two years. He highlighted the detrimental effects of the recent removal of petroleum subsidies and the devaluation of the naira implemented by the federal government. These economic policies, according to Alaje, significantly exacerbate the nation’s financial challenges. Policymakers must address these issues promptly to ensure economic stability and growth.

Allafrica — Nigeria's Rising Debt Service-to-Revenue Ratio: Insights from Economist Paul Alaje

Economic Warning from Paul Alaje

Renowned economist Paul Alaje cautioned that Nigeria's debt service-to-revenue ratio is set to hit 98% in just two years. This alarming forecast draws attention to the pressing economic policies currently at play.

Impact of Policy Changes

Removal of petroleum subsidy has led to increased financial strain.
Devaluation of the naira further complicates Nigeria's financial landscape.

Conclusion

This situation calls for swift intervention from the government to mitigate the impact of these economic decisions. Without immediate action, Nigeria could face severe economic repercussions.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Economic Warning from Paul Alaje

Impact of Policy Changes

Conclusion

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