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Nigeria Works on Debt Reduction

FILE: Nigerian Ministry of Finance Zainab Ahmed. Taken Sept. 20, 2018

Nigeria's debt trajectory is sustainable the country's finance minister said on Wednesday, adding that it planned to bring its key debt service-to-revenue ratio down sharply this year and would not borrow on the international capital markets.

Nigeria's government spent 80% of its revenue on debt servicing last year, a ratio that could rise to around 100%, the International Monetary Fund estimates.

"Eighty percent is not sustainable and our plan is that it is coming down to 60% in 2023," Zainab Ahmed said in a Bloomberg TV interview, adding that the country expected to produce 1.6 million barrels of oil a day this year.

Nigeria's central bank meets next week on Tuesday to decide on rates in Africa's largest economy. It has previously said it would continue with rate hikes started in 2022 if inflation remained elevated.

Meanwhile, at the World Economic Forum in Davos, Switzerland, activists are calling on rich nations to forgive debts by developing countries, or accept a reduced payback.