• Says interest rates, Naira devaluation, not new borrowing, piled up debt pressure
•Real debt rose 3% over three years
James Emejo in Abuja
Nigeria’s debt sustainability concerns are driven more by elevated interest rates and exchange rate volatility than excessive new borrowing, according to a report by The Briefing – Macro & Markets.
The report countered growing fears over Nigeria’s rising public debt profile and its debt service to revenue challenges. It argued that recent narratives suggesting that the country was sliding into a debt crisis were misleading because they relied heavily on nominal Naira figures without adjusting for FX distortions and historical liabilities.
