From Adanna Nnamani, Abuja
Director-General of the Debt Management Office (DMO), Patience Oniha, has said Nigeria’s public debt remains sustainable, stressing that the country’s debt-to-Gross Domestic Product (GDP) ratio is currently about 40 percent, well below the 70 percent international benchmark for emerging economies.
Speaking at the ongoing 31st Nigerian Economic Summit (NES) in Abuja, Oniha explained that despite growing public concern about Nigeria’s debt profile, the country’s borrowing level is not excessive when compared to global standards.
“When people talk about Nigeria’s debt-to-GDP ratio, they often forget that the international benchmark for countries like ours is about 70 percent. At 40 percent, Nigeria remains below that threshold,” she said.
The DMO chief, however, pointed out that the major fiscal concern for the country is its debt service-to-revenue ratio, which measures how much of government earnings go into debt repayment.
Oniha maintained that improving government revenue remains the most effective way to achieve long-term debt sustainability, adding that higher revenue would reduce dependence on borrowing and create fiscal space for development.
“If a large portion of revenue goes to debt service, less will be left for development projects.
“The focus should be on growing revenue so that the debt service-to-revenue ratio can be lower.
“When revenues rise significantly, the rate of borrowing will slow down, and the government can service debts conveniently while still funding critical projects,” she stated.
She further explained that all debt servicing obligations are properly incorporated into the Medium-Term Expenditure Framework (MTEF) and the national budget, ensuring transparency and predictability in Nigeria’s debt strategy.
Oniha stressed that fiscal discipline and stronger revenue mobilisation are key to maintaining debt sustainability while supporting infrastructure growth and social investments.
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