By Francis Ogwo
The debt-GDP ratio of Nigeria which ranks as the biggest economy in the Sub-saharan region, may hit 68 per cent with the low oil prices and demand.The International Monetary Fund (IMF) has noted.
This was contained in a special report on Thursday in which it warned that owing to the COVID-19 pandemic, Sub-saharan Africa faces a huge challenge in paying back nearly $900 billion in debt aside other public expenditure.
According to the report, the IMF said the region would require some $890 billion in external financing which equals 55 percent of its total annual economic output between now and 2023.
The report further noted that while the G20 countries have offered African states debt relief, they should do more and be “more audacious” in their help.
It added that the Sub-saharan region had been on course to reduce its debt burden but it now looks as if the debt-GDP ratio will hit 65 percent by the end of this year when it had been relatively stable at 55 percent.
