Nigeria's appetite for borrowing is addressed by the IMF as debt steadily increases to N77 trillion.

• Specifically in the areas of revenue and debt management, the IMF has once again urged Nigeria to implement changes.
• Nigeria's tax-to-GDP ratio, at 8%, is among the lowest internationally, according to the international organization.
• The IMF has proposed measures, nevertheless, that it believes will aid Nigeria in reducing its debt load, which is anticipated to total N77 trillion.
   

The country's debt stock had reached N46.25 trillion as of December 2022, according to the Debt Management Office (DMO), and experts predict that it would reach N77 trillion in May. 

The IMF issued a warning that the present borrowing rate is unsustainable and may result in serious issues down the road.

The international organization explicitly urged the Nigerian government to increase tax revenues, notably by assuring compliance and widening the tax base to bring in more money. 

It emphasized that taxes will contribute to reducing the government's ongoing borrowing needs. This was declared by the IMF during its joint spring meetings with the World Bank in its most recent Fiscal Monitor, headlined "On the path to Policy Normalisation," which was published on Wednesday, April 14, 2023. 
 

In response to the report, Paulo Medas, Division Chief of the Fiscal Affairs Department at the IMF, stated: "Our message regarding Nigeria is that there is a requirement for a plan of action in the medium term to gradually decrease the country's susceptibility to debt, which stems from the fact that Nigeria's tax revenues are noticeably insufficient.As a result, it is more susceptible to these kinds of shocks and the tightening global environment. 
Additionally, he made the point that Nigeria had not always reaped the rewards of spikes in oil prices because a sizeable chunk had been diverted to unintended energy subsidies.

Nigeria can lower its fiscal deficit and direct resources to other sectors that can foster future growth, such education and health, by switching to more focused subsidies. "More focused energy subsidy implementation can be advantageous for fiscal, debt dynamics, and growth.Given that Nigeria's tax revenues are now among the lowest in the world in relation to its gross domestic product, it is advised that the country broaden its tax base and improve compliance with tax laws.