Nigeria fact of the day
In Nigeria debt service, mostly domestic, took up a staggering 96% of government revenues last year.
That is from The Economist, in an article focused on Africa’s resurgent fiscal troubles. Here is a bit more:
Part of the problem is that the government has collected little money from oil recently due to rampant oil theft, low production and the cost of fuel subsidies, which are deducted before oil proceeds reach the treasury. Bola Tinubu, Nigeria’s incoming president, promises to fix the oily mess, but so have many past presidents of his country. Even in better-run places, debt service is chewing up government revenue. In Ivory Coast and Senegal it accounts for about one-quarter of revenue.
Ideally, economic growth would allow Africa to escape the squeeze. But the outlook is gloomy. In April the imf cut its growth forecast for sub-Saharan Africa in 2023 to 3.6%, only about one percentage point higher than population growth.
I wonder what the de-growthers think of this.