PRESIDENT TINUBU’S ADMINISTRATION INHERITS DEBT TO GDP OF 38% – INAUGURATION DAY DATA
PRESIDENT MUHAMMADU BUHARI’S ADMINISTRATION ON MAY 29, HANDED OVER TO PRESIDENT BOLA AHMED TINUBU WHICH MARKED THE CONTINUOUS TRANSFER OF DEMOCRATIC POWER SINCE 1999, A MILESTONE IN THE HISTORY OF NIGERIA. DESPITE THE EXCITEMENT THAT HAS HERALDED PRESIDENT TINUBU’S INAUGURATION, THE TRUTH REMAINS THAT HE HAS INHERITED A VERY TROUBLED ECONOMY. ALTHOUGH MANY NIGERIANS HAVE RAISED CONCERNS ABOUT NIGERIA’S RISING DEBT PROFILE, THE DEBT MANAGEMENT OFFICE (DMO) INSISTED THAT NIGERIA’S DEBT WAS SUSTAINABLE AS LONG AS IT WAS WITHIN THE WORLD BANK THRESHOLD OF 40% DEBT TO GDP. ACCORDING TO AVAILABLE DATA, NIGERIA CURRENTLY SITS AT A DEBT TO GDP RATIO OF 38%. HOWEVER, GIVEN THE RISING DEBT SERVICE SPENDING, THE TINUBU ADMINISTRATION WILL HAVE A LOT OF WORK TO DO IN ORDER TO PREVENT DEBT LEVELS FROM RISING FURTHER.
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