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With a 60% Debt Service-to-Revenue Ratio, Borrowing Is Certainly a Concern in Nigeria - Alaje

Borrowing isn’t leprosy. In itself, it’s neither good nor bad. Globally, the standard for measuring borrowing risk is the debt service-to-revenue ratio. It should stay below one-third of a country’s revenue. Under the previous administration, Nigeria spent as much as 97% of all revenue on debt servicing, which made borrowing a serious concern. There’s also a lack of clarity on what specific projects borrowings from this administration are tied to.

Dr. Paul Alaje, Chief Economist, SPM Professionals

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