The International Monetary Fund (IMF) has projected that Nigeria will spend more than half of its revenue on debt servicing in 2026.
The projection is contained in the International Monetary Fund’s (IMF) latest country assessment, which estimates that the federal government’s interest payments will consume 53.7 percent of revenue in 2026, up from 53.2 percent in 2025 and 40.8 percent in 2024.
The IMF expects the interest-to-revenue ratio to ease marginally to 52.4 percent in 2027.
Also, IMF projected improvements in inflation and external reserves, forecasting average inflation of 16 percent in 2026, while gross international reserves are expected to rise from $40.2 billion in 2024 to $58.1 billion in 2026 and $62 billion in 2027.
‘NIGERIA’S DEBT IS SUSTAINABLE, BUT DEBT-SERVICE BURDEN IS A CONCERN’
Speaking on ARISE Television on Tuesday, Christian Ebeke, IMF resident representative for Nigeria, said the country’s debt remained
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