IMF DSA FrameworkNigeria Actuals 2019–20243-Scenario Fan ChartInteractive Sliders

Public Debt Sustainability Analyser

Model Nigeria's debt-to-GDP trajectory under your own growth and interest rate assumptions. IMF-style DSA arithmetic with optimistic, baseline, and pessimistic fan-chart projections to 2029.

Baseline Debt/GDP 2029
50.7%
Optimistic: 44.2% · Pessimistic: 60.7%
Low Risk
Interest / Revenue 2029
47.9%
IMF high risk threshold: 22%
High Risk
Primary Balance 2029
-2.5% GDP
Surplus stabilises debt
High Risk
Overall DSA Assessment
High Risk
Across all three scenarios
High Risk

Debt-to-GDP Trajectory

Historical actuals (solid) + 2025–2029 scenario fan (shaded)

Scenario Parameters

Real GDP Growth3.8%
Nigeria 2024 estimate: ~3.4%. Oil sector recovery can push higher.
Nominal Interest Rate8.5%
Weighted avg rate on new borrowing. Domestic MPR currently 27.5%.
Primary Balance-2.5% GDP
Revenue minus non-interest spending. Negative = deficit.
Oil Revenue Boost0.0pp/yr
Annual change in oil rev as % GDP. Positive = higher oil output/price.
FX Debt Share29%
Share of public debt in foreign currency (~29% as of 2024).
Annual FX Depreciation5.0%
Naira weakening adds to FX debt stock in GDP terms.

IMF Benchmark Thresholds

Debt/GDP (2029 Baseline)50.7%
Safe55% moderate70% high
Interest/Revenue (2029 Baseline)47.9%
Safe18% moderate22% high
Debt/GDP (2029 Pessimistic)60.7%
Safe55% moderate70% high

Nigeria's nominal debt/GDP appears contained (~27%), but the interest/revenue ratio has exceeded the IMF's high-risk threshold of 22% — a reflection of low revenue mobilisation rather than high debt stock.

Projection Table — All Scenarios

YearOptimistic Debt/GDPBaseline Debt/GDPPessimistic Debt/GDPBaseline Int/RevBaseline Prim Bal
202530.5%31.5%33.0%29.8%-2.5%
202633.7%35.9%39.1%33.9%-2.5%
202737.1%40.6%45.8%38.3%-2.5%
202840.6%45.5%52.9%43.0%-2.5%
202944.2%50.7%60.7%47.9%-2.5%

Methodology

Debt accumulation follows the IMF DSA identity: d(t) = [(1+r)/(1+g)] × d(t−1) − pb(t), where r is the nominal interest rate, g is nominal GDP growth, and pb is the primary balance as % of GDP. A foreign-currency stock-flow adjustment is added for FX-denominated debt under naira depreciation. Optimistic/pessimistic scenarios shift GDP growth by ±1.5pp, interest rate by ∓0.5/+1.0pp, and primary balance by ±0.5/∓0.8pp. Historical data from DMO and NBS.