Nigeria is among the 20 countries with the lowest National Debt in relation to the Gross Domestic Product, GDP according to a report by the Statistia, the portal for statistics that provide immediate access to over one million statistics and facts. In 2016, Nigeria’s estimated level of national debt reached about 14.69 percent of the GDP, ranking 9th of the countries with the lowest national debt.
In its statistic that shows the 20 countries with the lowest national debt in 2016 in relation to the gross domestic product (GDP). The debt in question refers to the debts of the entire country, including the Federal government, State and any other arms or agencies of the government.
National debt and GDP
The debt-to-GDP ratio is an indicator of a country’s ability to produce and sell goods in order to pay back any present debts, however, these countries should not retain newer debts in the process.
Many economists believe that if a country is able to produce more without impairing its own economic growth, it can be considered more stable, particularly for the future.
However, the listed countries, with the exception of Russia and Saudi Arabia, are not necessarily economic first-world powers. Additionally, economically powerful countries such as the United States and France maintain one of the highest debt-to-GDP ratios, signifying that occurring debt does not necessarily damage the state of the economy and is sometimes necessary in order to help develop it.
Saudi Arabia has maintained one of the lowest debt-to-GDP ratios due to its high export rates, which primarily consist of petroleum and petroleum goods. Given the significance of oil in today’s world, Saudi Arabia produces enough oil and earns enough revenue to maintain a high GDP and additionally refrain from incurring debt.