The World Bank has warned that Nigeria’s debt service-to-revenue ratio will surge to 102.3%, adding that the country’s public debt in Nigeria remains a huge concern
In its biannual Africa’s Pulse report released on Tuesday, the World Bank cut its forecast for 2022, saying the economy will now grow at 3.3% from 3.8% it earlier forecasted.
“Public debt in Nigeria is a concern,” the World Bank said in the report. “The combination of low production in the oil industry and unsustainable subsidies is one of the main obstacles to attaining debt sustainability.”
Unlike Nigeria, the World Bank says fellow oil-producing country, Angola’s public debt will decline to 61.9% of gross domestic product this year from 85.7% in 2021.
It also said Angola will expand 3.1% this year from 0.8% in 2021, thanks to rising oil prices.
The World Bank also expects the Sub-Saharan African region’s economic growth to slow to 3.3% in 2022 from 4.1% last year.