The International Monetary Fund, IMF, has predicted that revenues generated in the coming years by many African countries, including Nigeria, could be used to settle debt.
The agency painted the bleak outlook in its recent Regional Economic Outlook for Sub-Saharan Africa released Monday, May 30 in Abuja.
Ari Aiden, the resident representative of the agency, revealed in his presentation that the country is in serious financial difficulties.
He explained that many African countries, including Nigeria, are gradually facing critical debt servicing issues, saying that 80% of federal government revenues are currently used for debt servicing.
He said, “This is a reflection of low income. This is an existential question for Nigeria. It is essential for macroeconomic stability. This is important for the provision of social services.
He added that with monthly fuel subsidy payments of 500 billion naira, the country could end up with a record subsidy of 6 trillion naira by the end of the year.
Speaking on the continent’s economic outlook, the IMF official identified key priority areas such as reducing debt vulnerabilities, balancing inflation and growth; and managing exchange rate pressures.