The Federal Government has endorsed Nigeria’s Medium-Term Debt Management Strategy (MTDS) for 2024–2027, a framework designed to safeguard debt sustainability, strengthen fiscal stability, and deepen the domestic securities market. The approval, announced by the Debt Management Office (DMO), follows Federal Executive Council (FEC) backing and incorporates technical support from the World Bank and International Monetary Fund.
The MTDS outlines clear debt sustainability benchmarks to balance Nigeria’s financing needs with cost and risk management. Among its key targets, the debt-to-GDP ratio will be capped at 60% by 2027, interest payments-to-GDP limited to 4.5%, and sovereign guarantees not to exceed 5% of GDP. The domestic-to-external debt ratio will be rebalanced to 55:45, while average debt maturity will extend to at least 10 years, reducing refinancing risks.
By shifting more borrowing to local markets and curbing foreign exchange exposure, the strategy aims to restore investor confidence, reassure credit rating agencies, and signal Nigeria’s commitment to fiscal discipline. Officials say the initiative reflects international best practice and marks a decisive step toward stabilising the country’s public finances.
