The International Monetary Fund (IMF) has urged Nigeria to enhance its revenue mobilization efforts to alleviate the pressure on its public debt. The Fund noted that a significant portion of Nigeria’s revenue is currently allocated to debt servicing, limiting the government’s ability to invest in critical development projects.
Davide Furceri, Division Chief of the IMF’s Fiscal Affairs Department, highlighted the need for Nigeria to broaden its tax base and implement a more efficient tax collection system. By increasing revenue, the government can reduce its reliance on debt and allocate more resources to social and economic programs.
The IMF’s Fiscal Monitor Report projects a gradual decline in Nigeria’s debt-to-GDP ratio over the next few years. However, the Fund emphasizes the importance of fiscal discipline and structural reforms to ensure long-term fiscal sustainability.
The report also recommends that the government implement targeted social safety nets to protect vulnerable groups from the impact of inflation and other economic challenges.
