Nigeria has introduced a new policy framework to enhance the management of its public debt, with the Debt Management Office (DMO) announcing the approval of the Medium-Term Debt Management Strategy (MTDS) for 2024–2027.
The strategy, developed with technical support from the World Bank and the International Monetary Fund (IMF) and approved by the Federal Executive Council (FEC), sets fresh benchmarks to balance government financing needs with long-term sustainability while minimizing costs and risks.
According to the DMO, the MTDS focuses on meeting the government’s short- to medium-term financing and payment obligations, achieving an optimal debt portfolio, and expanding the domestic securities market through innovative products.
Key targets include extending the average debt maturity to at least 10 years to ease repayment pressures and cutting the share of foreign exchange-denominated debt to 45 percent of the total debt, down from 51.75 percent, to reduce exposure to currency volatility.
Other key targets under the new strategy include: Debt-to-GDP Ratio, this is projected to rise from 52.25 percent at the end of 2024 to a ceiling of 60 percent by 2027.
