The Federal Executive Council on Wednesday approved a new Medium-Term Debt Management Strategy for Nigeria, for the period of 2020 to 2023, which will allow the government borrow more from domestic sources.
The Debt Management Office disclosed this on Wednesday in a press release titled “Federal Executive Council approves a new debt management strategy for Nigeria’.
The statement reads, “Based on the current public debt stock, government’s borrowing needs in the medium-term (as stated in the 2021 Appropriation Act, MTEF, 2021-2023), as well as future global trends, Nigeria’s 2020-2023 MTDS can be summarized as follows:
“Borrowing will be from domestic and external sources but a larger proportion of new borrowing will be from domestic sources using long-term instruments while for external borrowing, concessional funding from multilateral and bilateral sources will be prioritized.”
“The total public debt as percentage of Gross Domestic Product for 2020 to 2032 increased from 25 percent to 40 percent in order to accommodate new borrowings to fund budget deficit and other obligations of government.
“Promissory notes were to be issued to settle government arrears, and the ways and means advance at the Central Bank of Nigeria.”
