Nigeria’s debt service cost is putting severe pressures on the purse carrying its revenue, which continues to dwindle.
This is happening at a time when many indices show an economy that is worse for wear, with external reserves below $40 billion, the Naira weakening daily against the United States dollar, both at the parallel and the investors and exporters’ segments of the FX market, an inability to benefit from a rally in the crude oil price to above $100 per barrel, and the country’s daily oil production has dropped drastically.
With over $3 billion lost to oil theft alone in 2021, the country has been kept on a fiscal cliff. Nigeria’s spending problem is now becoming the new song in the mouths of many, including Nigerians and analysts, as they see the looming and about to be triggered macroeconomic instability in Nigeria, “If the trend of continued rising debts costs without a corresponding revenue increase remains longer