Nigeria’s debt-to-GDP ratio on the decline, IMF predicts
The International Monetary Fund (IMF) says Nigeria’s debt-to-gross domestic product (GDP) ratio is expected to decrease to 36.4 percent in 2025 and further to 35 percent in 2026.
The projection was made in its latest Fiscal Monitor report, launched at the ongoing 2025 IMF/World Bank annual meetings on Wednesday in Washington DC, where the fund also forecasted that the country’s debt-to-GDP ratio will rise slightly to 35.3 percent in 2027.
Speaking during the launch, David Furceri, division chief of the fiscal affairs department at the IMF, advised Nigeria to ramp up its revenue and strengthen its tax system.
He said the IMF is projecting “a neutral fiscal stance” for Nigeria, adding that this is consistent with economic policies aimed at reducing inflation.
“Our policies advice has been both on the revenue side as well on the spending side because the revenue side of this scope is to improve from revenue, to reform, to tax administration, to increase revenue,” Furceri said.
He noted that Nigeria has made significant progress in recent years with its tax reform efforts, describing recent laws passed to streamline the tax code as policies that “go in the right direction.”
“Many of the laws that have been passed are trying to streamline the tax code, tax expenditures have also been reduced. The burden for business and low income also has declined in terms of taxation,” he said.
On the spending side, the IMF official said there is scope to improve efficiency while also increasing social spending to support vulnerable households and ensure inclusive growth.
