Debt sustainability in Africa has emerged as a key concern among policymakers and development finance institutions (DFIs). Currently, 19 out of 54 countries in Africa exceed the 60% debt-to-gross domestic product (GDP) threshold prescribed by the African Monetary Co-operation Programme (AMCP) and 24 countries have surpassed the 55% debt-to-GDP ratio suggested by the International Monetary Fund (IMF). Of concern is the changing structure of Africa’s debt: countries are tilting towards non-concessional and domestic debt with higher interest rates. Governments’ ease of access to and control over the domestic debt market is leading to excessive public debt accumulation and macroeconomic instability. Aside from the high interest rate and debt-servicing burden, excessive domestic debt also stifles credit to the private sector, the main engine of growth and job creation.
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December 19, 2018
Managing Africa’s Rising Debt: Time for a Multi-Pronged Approach
Debt sustainability in Africa has emerged as a key concern among policymakers and development finance institutions (DFIs). Currently, 19 out of 54 countries in Africa exceed the 60% debt-to-gross domestic product (GDP) threshold prescribed by the African Monetary Co-operation Programme (AMCP) and 24 countries have surpassed the 55% debt-to-GDP ratio suggested by the International Monetary […]
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Real GDP Growth Rate
On average, Nigerias GDP growth rate has averaged about 5 percent; attaining an unusual trough of nearly -10 percent in 2003Q4 and a peak of nearly 20 percent in 2004Q4. However, the Nigerian economy
Nigeria Economic Update (Issue 10)
Nigerias inflation rate remained above
CBNs bandwidth of 6-9 per cent. Specifically, the inflation rate increased
slightly from 9.55 percent in December 2015 to 9.62 percent in January 20165.
The Core sub-index remains the main driver of inflation in Nigeria. The higher
prices of items in the Core sub-index such as clothing and foot wears are
reflective of higher domestic production costs as a result of the decline in the
value of the naira relative to the dollar. However, in the period, the price
increase was moderated by the stable price of Premium Motor Spirit (PMS). Going
forward, without any sustainable policy measure to prevent the further
depreciation of the naira, inflation may exceed the current single digit
inflation rate in the near term.