The growing debt service-to-revenue ratio in Nigeria, according to the World Bank, is a cause for concern.
The bank estimates that by the end of 2022, the debt service to revenue ratio might be at 102.3%.
As the predicted increase in debt service to revenue to 102. 3 percent by the end of 2022, “debt pressures have increased. This shows that increased subsidies for petroleum goods offset rising oil prices by a lack of revenue for the government.
One of the biggest challenges to achieving debt sustainability is the interaction between low oil output and unsustainable subsidies.
It also stated that, with the exception of Nigeria, nations that sell oil were to dramatically cut their public debt.