The Debt Management Office (DMO) has warned that unless the country develops other sources of revenue asides oil, Nigeria may run into a debt distress if there is a prolonged shock on its oil.
In its annual report, the agency said analysis of the standard stress test of external and domestic debt of the federal government showed that the present value of the debt to GDP ratio of the country rose to an average of 24.2 per cent annually during the period of 2017-2036.
The report stated that, "The stress tests or combined shocks, when applied to the revenue-based indicators showed a substantial deterioration in ratios, indicating that any prolonged shock on revenue could lead to debt distress in the medium to long-term, if other sources of revenue are not developed to enhance the revenue."
Nigeria's total debt presently stands at N19.159 trillion as at March 31, 2017.
