Analysts Warn of Risks as Nigeria Raises Debt Ceiling Amid Revenue Gaps

Analysts express caution over Nigeria's revised Debt Management Strategy, raising concerns about revenue gaps amidst a higher debt ceiling. The Debt Management Office's adjustment to borrowing parameters aims to balance costs and risks but may expose the economy to vulnerabilities.

The new strategy increases the public debt ceiling to 60% by 2024, reflecting a shift towards more borrowing. Analysts stress the importance of revenue mobilization to ensure fiscal sustainability, as Nigeria's GDP stands at an estimated $243 billion.

The country faces challenges in managing debt accumulation and servicing costs, emphasizing the need for a clear fiscal path.