FG approves new Medium-Term Debt Strategy, sets 60% debt-to-GDP ceiling by 2027

The Federal Government of Nigeria has approved a new Medium-Term Debt Strategy (MTDS) aimed at ensuring debt sustainability, improving fiscal stability, and deepening the domestic security market. The approval was announced by the Debt Management Office (DMO) in a press release on Saturday, following the endorsement of the policy framework by the Federal Executive Council (FEC).

The MTDS, developed with technical support from the World Bank and the International Monetary Fund (IMF), is recognized as a global best practice for managing public debt. The strategy sets a 60% debt-to-GDP ceiling by 2027, aiming to balance government financing needs with debt sustainability considerations.

The formulation of the MTDS involved consultations with stakeholders in the monetary and fiscal space, including the Central Bank of Nigeria and the Federal Ministry of Finance. The new plan is expected to reassure investors, credit rating agencies, and international partners that Nigeria remains committed to responsible debt management and fiscal discipline.