The Islamic Development Bank, IDB, on Tuesday, March 1, revealed that Nigeria was using 75 percent of its revenue to service debts incurred over the years.
The Resident Representative of the Bank in Nigeria, Abdallah Mohammed Kilaiki, stated this during a courtesy visit to the Chairman of the Senate Committee on Local and Foreign Debts, Senator Shehu Sani.
Kilaiki said even though Nigeria’s debt to gross domestic product (GDP) ratio was favorable, servicing 75 percent of revenue on debts was unfavorable.
“The amount the country is using to service debts is 75 to 80 percent of its revenue. The domestic resources being used to service loan is high,” he said.
He advised the Nigerian government to diversify the country’s revenue base and suggested the upward review of taxes.
